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Featured IRS instant tax credit for EVs, PHEVs, e.t.c.

Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by bwilson4web, Oct 9, 2023.

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  1. bisco

    bisco cookie crumbler

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    sounds right, the $3,000. is what you paid, the $2,500. was you liability
     
    #21 bisco, Oct 11, 2023
  2. Isaac Zachary

    Isaac Zachary Senior Member

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    Of course the way it looks now:

    Pay $3,000
    Liable for $2,500
    Get $7,500 point-of-sale
    Get $500 back at end of year.
     
    #22 Isaac Zachary, Oct 11, 2023
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  3. bisco

    bisco cookie crumbler

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    agreed
     
    #23 bisco, Oct 12, 2023
  4. Isaac Zachary

    Isaac Zachary Senior Member

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    I have a question.

    I looked at the Tesla site and saw this:

    Does this mean that when the point of sale tax credit becomes a thing that we will no longer be able to get the full $7,500, at least for Tesla? Why? What other brands are affected?
     
    #24 Isaac Zachary, Oct 23, 2023
  5. bwilson4web

    bwilson4web BMW i3 and Model 3

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    My understanding is because of the battery, some trims of the Model 3 will only get the half credit, $3,750, instead of the $7,500. Pay attention to the date and before, all Model 3 will get the $7,500. After that date, I understand the LFP battery version, the lowest cost trim, will get half because there is no US production of the LFP packs.

    The LFP packs are reported to be less expensive than the current NMC packs. It is possible a future price reduction from the LFP battery pack may offset the $3,750 tax credit.

    Bob Wilson
     
    #25 bwilson4web, Oct 23, 2023
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  6. Zythryn

    Zythryn Senior Member

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    Bob gave a great summary. One other factor is that the requirements for the rebate get more stringent over time.
    So what qualifies one year may only partially, or not qualify the next year.
     
    #26 Zythryn, Oct 23, 2023
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  7. bisco

    bisco cookie crumbler

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    Also, Tesla seems to be using the lower credit ‘possibility’ as a marketing tool to sell more cars this year.
    But either way, there’s some risk in waiting .
    This does not affect other manufacturers, although only Chevy, Ford and VW qualify anyway until others meet the battery component requirements anyway.

    personally, I don’t see Tesla giving up the full credit on at least some models, as it drives sales
     
    #27 bisco, Oct 23, 2023
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  8. Trollbait

    Trollbait It's a D&D thing

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    The credit is split into two $3750 parts. One for assembling the pack in the US. The other for using materials for it from 'friendly' places. The percentages for meeting those get more stringent over time. Details are in the law.

    In Tesla's case, the Model 3 RWD/standard range was using a LFP from CATL in China. When the credit went into effect they switched back to the original chemistry that cost more to qualify for the whole credit. IRRC, it only got $3750 back then with LFP. Looks like they are going back to LFP for costs or supply.
     
    #28 Trollbait, Oct 23, 2023
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