With all of the political jockeying about budget/deficit/tax-reform: has anything has come along that jeopardizes the federal tax credit?
Thanks for any input on this subject.
It is still in effect for 2013.
And just to be clear, it doesn't need to be renewed or anything. Unless congress proactively eliminates it (and Obama signs the bill), it will only expire when Tesla has sold 200,000 cars.
There has been some talk about increasing it to 10K and making it a rebate instead of a tax credit to further stimulate EV purchases
I think the tax credit is good until any particular company has sold 60,000 of their cars in that category. Then I think the credit goes away, But only for purchases of that particular car company. If there are other companies out there, say for example X company or Z company then the credit would be good until that particular company sells 60,000 of their cars for those customers.
That's how it is for hybrids and so forth and I believe the same is true for EV cars..
The credit is claimed on from 8936 (see IRS web site for forms) the following is copied from the instructions for form 8936.
The credit is subject to a phaseout (reduction) once the
vehicle manufacturer (or, for a foreign manufacturer, its
U.S. distributor) sells 200,000 of these vehicles to a
retailer for use in the United States after 2009. The
phaseout begins in the second calendar quarter after the
quarter in which the 200,000th vehicle was sold. Then the
phaseout allows 50% of the full credit for 2 quarters, 25%
of the full credit for 2 additional quarters, and no credit
I am not sure if the 200,000 applies to a manufacturer or a model, but Tesla has lots of room ahead.
See my post in the General section regarding delayed filing for 2012 credits.
Thanks everyone. Very helpful.
the $10K proposal applies to cars under $45K ONLY. Might affect the GenIII, but never the MS.