1. Attachments are working again! Check out this thread for more details and to report any other bugs.

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.

Page 2 of 2
  1. bisco

    bisco cookie crumbler

    Joined:
    May 11, 2005
    110,132
    50,047
    0
    Location:
    boston
    Vehicle:
    2012 Prius Plug-in
    Model:
    Plug-in Base
    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

    Joined:
    Jan 20, 2018
    1,986
    933
    1
    Location:
    USA
    Vehicle:
    Other Hybrid
    Model:
    N/A
    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
    bisco likes this.
  3. bisco

    bisco cookie crumbler

    Joined:
    May 11, 2005
    110,132
    50,047
    0
    Location:
    boston
    Vehicle:
    2012 Prius Plug-in
    Model:
    Plug-in Base
    agreed
     
    #23 bisco, Oct 12, 2023
  4. Isaac Zachary

    Isaac Zachary Senior Member

    Joined:
    Jan 20, 2018
    1,986
    933
    1
    Location:
    USA
    Vehicle:
    Other Hybrid
    Model:
    N/A
    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

    Joined:
    Nov 25, 2005
    27,661
    15,662
    0
    Location:
    Huntsville AL
    Vehicle:
    2018 Tesla Model 3
    Model:
    Prime Plus
    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
    Isaac Zachary likes this.
  6. Zythryn

    Zythryn Senior Member

    Joined:
    Apr 28, 2008
    6,309
    4,299
    1
    Location:
    Minnesota
    Vehicle:
    Other Electric Vehicle
    Model:
    N/A
    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
    Isaac Zachary likes this.
  7. bisco

    bisco cookie crumbler

    Joined:
    May 11, 2005
    110,132
    50,047
    0
    Location:
    boston
    Vehicle:
    2012 Prius Plug-in
    Model:
    Plug-in Base
    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
    Isaac Zachary and Trollbait like this.
  8. Trollbait

    Trollbait It's a D&D thing

    Joined:
    Feb 7, 2006
    22,447
    11,760
    0
    Location:
    eastern Pennsylvania
    Vehicle:
    Other Non-Hybrid
    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
    Isaac Zachary likes this.
(You must log in or sign up to post here.)
Page 2 of 2