# $7500 rebate for MYP



## Verboten

I just ordered MYP for 2022 delivery EDD. Will this qualy for $7500 rebate?


----------



## Klaus-rf

Verboten said:


> I just ordered MYP for 2022 delivery EDD. Will this qualy for $7500 rebate?


No.


----------



## Verboten

Incorrect.

the law includes a “transition rule” which states any EV with a “written binding contract to purchase” signed *before the date of the law’s enactment* will be able to take the old credit if the buyer so chooses, even if the car is delivered after the bill is signed. This is covered on page 393-394 of the bill. We don’t know when the bill will be signed, but it *could happen within days*.
(Note: this means that a buyer who signs a binding purchase agreements today can, if they choose, treat the credit *as if they bought the car today*, with all of the current rules for the “old” credit – you can’t mix and match certain rules, you either get all the provisions of the old one or of the new one)


----------



## Klaus-rf

The previous law was ONLY for the first 200K cars produced by a manufacturer and Tesla passed the 200K sales mark in 2018. So the next two quarters of 2019 the max tax credit was $3750, then half that in the last 2 quarters of 2019 and nothing afterwards.

There are no more credits for Tesla under the old law so no $7500 tax credit. My reading of the proposed new law will exclude all Tesla models because not enough components of the vehicle isare sourced and built in USA. Looks like almost all USA mfgrs of EV's are also excluded as most of their battery materials aren't sourced in USA either.

NOTE: I am not a lawyer and I did not sleep in a Holiday Inn Express last night.


----------



## Verboten

The 200k credit cap per manufacturer is being lifted until the end of 2032 starting 2023, however it is also lifted temporarily in 2022 (transition rule) until Biden signs law.


----------



## garsh

But Biden hasn't signed the law yet, and when he does the cap lifting is NOT retroactive.

Sorry, but you need to wait until the bill is signed and becomes law before any Tesla will qualify for a rebate.


----------



## jsmay311

Verboten said:


> *The 200k credit cap per manufacturer* is being lifted until the end of 2032 starting 2023, however it* is also lifted temporarily in 2022* (transition rule) until Biden signs law.


Where did you see/hear that?

In the bit below highlighted in yellow, it seems to state pretty clearly that the lifting of the 200k cap doesn't happen until Jan 1, 2023.

And the transition stuff (highlighted in blue) just seems to say that if you're already entered into a contract to buy an EV_ that qualifies for a tax credit today under current law_ but won't in 2023 under the new law, you can still claim the credit under the old rules even if the car is delivered after Jan 1, 2023.


----------



## jsmay311

Klaus-rf said:


> My reading of the proposed new law will exclude all Tesla models because not enough components of the vehicle are sourced and built in USA.


I was thinking Model Y's might qualify for a $3750 tax credit by meeting the "Battery Components" portion of the new law's requirements since the battery cells (which I assume account for the bulk of the cost of the battery pack) are manufactured in the USA, aren't they? (I thought they were made in Nevada at the Gigafactory there, but I could be mistaken.)

_(I think) _The key text in the bill is: _"the percentage of the value of the components contained in such battery that were manufactured or assembled in North America is equal to or greater than [...] 50 percent"_ in 2023, and then increasing by 10% every year thereafter.


----------



## garsh

Klaus-rf said:


> My reading of the proposed new law will exclude all Tesla models because not enough components of the vehicle isare sourced and built in USA.


North America, not USA. Gotta make sure all those GM and Ford cars built in plants in Mexico can qualify.

I don't think Tesla should have problems meeting these requirements.


----------



## GBMaryland

There were a bunch of things in the law related to income limits so that people can’t apply for the rebate if they make over a certain amount of money…

The rebate doesn’t apply the car is that cost over a certain amount (which is the vast majority of EV‘s)….

Basically, if you’re buying a Tesla, it is very unlikely you’ll be able to qualify for a rebate / tax credit.


----------



## francoisp

garsh said:


> North America, not USA. Gotta make sure all those GM and Ford cars built in plants in Mexico can qualify.


Don't forget Canada.


----------



## Soto

What are the income limits for the credit?
Is there a purchase price limit to the credit?
Is it true if you order a model Y you can't get the credit?
Would the model3 also be excluded?
This topic is hard to nail down.


----------



## jsmay311

Soto said:


> What are the income limits for the credit?
> Is there a purchase price limit to the credit?


*New vehicles:*

Income limit:
$150k, single
$300k, married filing jointly
$225k, head of household

Price cap:
$55k, cars
$80k, vans, pickups, and SUVs

*Used vehicles:*

Income limit:
$75k, single
$150k, married filing jointly
$112.5k, head of household

Price cap:
$25k




Soto said:


> Is it true if you order a model Y you can't get the credit?
> Would the model3 also be excluded?


The Model Y satisfies the price limits (unless you get it fully loaded + FSD), as does the Model 3 RWD (w/o FSD). Model 3 AWD is too expensive.

But the big unknown is whether _*any *_EV (including the Y and 3) will meet the battery sourcing requirements laid out in the bill. Under the new law, $3,750 of the $7,500 credit is contingent upon 50%+ of the value of the "battery components" being manufactured or assembled in North America, and the other $3,750 is contingent upon 40%+ of the value of the "critical minerals" used in the batteries being sourced from countries that have free trade agreements with the US. And both of these percentages increase by 10% every year until the "battery components" percentage hits 100% and the "critical minerals" percentage hits 80%. And all vehicles have to have their final assembly in North America to qualify for anything.

My guess is that the Model Y will qualify for $3,750 from the "battery components" portion, but not the "critical minerals" portion. But that's just a guess. I'd also guess that the Model 3 RWD won't qualify for either portions, since (I think) it's LFP battery cells come from China.

Regardless, I wouldn't count on getting a single cent unless and until Tesla publicly states that a certain model will qualify for the new credit.

Some references:
New Clean Vehicle Tax Credit Plan Means Most EVs No Longer Qualify - Forbes Wheels
EV Tax Credits are Changing: What's Ahead | Kiplinger
The Inflation Reduction Act — Incentives for Clean Motor Vehicles and Refueling Property (orrick.com)
Inflation Reduction Act extends $7,500 tax credit for electric cars (cnbc.com)


----------



## tivoboy

I think Tesla will most likely come out with several models of the M3 and MY, with slightly reduced battery capacities, and sell the car at 54,999, and then for 5K or 7.5K or more one can software upgrade AFTER purchase to the full battery pack configuration available… this has been done before, just not with this same objective. It doesn’t take a lot of effort.


----------



## Verboten

From the DOE today…..The list includes both 2022 and 2023 model-year vehicles that are assembled in North America but it can be confusing since Tesla and GM are excluded from the $7,500 EV credits this year but qualify next year. Tesla and GM were disqualified since both companies have sold over 200,000 EVs. Under the new law, the manufacturer’s sales cap is lifted.


----------



## Soto

I don't think the Y counts as an SUV. At least that's what I see when I go to the Tesla site and try to see the NJ EV credit. No NJ discount. There's supposed to be an SUV NJ credit if under $80k.
Model 3 gets the $2k NJ sedan credit.
So it leads me to believe that the Y is not a sedan, nor an SUV, according to NJ.


----------



## jsmay311

Verboten said:


> From the DOE today…..The list includes both 2022 and 2023 model-year vehicles that are assembled in North America


Here it is: Alternative Fuels Data Center: Inflation Reduction Act of 2022



Verboten said:


> it can be confusing since Tesla and GM are excluded from the $7,500 EV credits this year but qualify next year.


They meet the North American assembly requirement, but that alone doesn’t guarantee they’ll qualify for any tax credit. Tesla and GM vehicles will also have to meet the battery component and materials sourcing requirements to qualify for any tax credits in 2023. And that’s still TBD.

All this list does is to confirm which EVs are assembled in North America.

The FAQ is also informative:


https://home.treasury.gov/system/files/136/EV-Tax-Credit-FAQs.pdf



Particularly this part:

“_Q: What if I purchase and take possession of a qualifying electric vehicle after August 16, 2022 but before the end of 2022?

A: The only change to the existing electric vehicle credit that takes effect after August 16, 2022 and before the end of 2022 is the introduction of the North America final assembly requirement. Otherwise, the rules in effect before enactment of the Inflation Reduction Act for the electric vehicle credit remain in effect, including the phase-out for manufacturers that have sold over 200,000 vehicles in the United States.”_


----------



## garsh

Soto said:


> I don't think the Y counts as an SUV.


The EPA disagrees.



> At least that's what I see when I go to the Tesla site and try to see the NJ EV credit. No NJ discount. There's supposed to be an SUV NJ credit if under $80k.
> Model 3 gets the $2k NJ sedan credit.
> So it leads me to believe that the Y is not a sedan, nor an SUV, according to NJ.


For that logic to hold, wouldn't the Model Y also get the $2k NJ sedan credit?

Very strange that the Model 3 qualifies, but the S, X, and Y do not.






Eligible Vehicles | Charge Up New Jersey







chargeup.njcleanenergy.com


----------



## Soto

The Y doesn't get the sedan NJ credit but it's also not getting the SUV under $80k discount either. So I'm not sure what NJ is classifying it as. Crossover? Anything to disqualify it? Unless Tesla hasn't updated their site fully.
I'd love to get the NJ credit and the $7500 for a Y. It'll be a waiting game then.


----------

