How Big is my Tax Credit?

So how does the tax credit work?

The Federal Tax Credit is $7,500.

If it cost you $35,000 for the new Tesla Model 3.

If you subtract $7,500 from $35,000 = $27,500.

That is a big deal and now it beginning  to make the car affordable.

First let talk about what affordable, that is, like most cars when you start upgrading to leather seats and the up grade battery pack the cost would go higher. Still $7,500 tax is a great incentive.

So how does this work?…For every 200,000 cars Tesla delivers in the US start the clock.

For example

If you order your car last year and you plan on taken delivery by the 3 quarter of 2017…you will get $7,500. in a form of a federal tax credit.

Even if you take delivery by the end of 2018 you should get your full credit.

After that it drops to $3,750 or if you expected delivery is in 1 or 2 quarter of 2019.

The final drop is $1,750 and expected to end

end of 2019.

However, remember this a tax credit only.

For example If you owe Uncle Sam $5000 …in taxes… your tax credit pays the bills.

There are no roll overs….no extras

If you do no owe taxes…. no tax credit

In some states there added benefits…. and even more tax breaks at the local level.

The new Tesla Model 3 option can vary depending on the version ordered and where the buyer’s lives.

Tesla estimates the mid-range, rear-drive model will be delivered in six to 10 weeks with the smaller battery and the rear-wheel drive.

The mid-range battery pack is the long-range battery pack with fewer cells.

This new option is priced at $31,200.

Destination charges add $1,200.

The previous version was a Model 3 was $35,000, with the long-range battery at $9,000 and, then add $5,000 for the premium interior.

Priced reduced $4,000 with the shorter battery range.

The move should boost sales before the full tax credit expires on Dec. 31.

Tesla claims the mid-range model has a 260-mile range and can go to 0-60 mph in 5.6 seconds.

The premium interior package comes with a 12-way power and heated front seats, premium sound system, a center console with four USB ports, tinted glass roof, power folding and heated side mirrors, led fog lamps, and one-year premium connectivity plan.

The long-range battery option is only available with all-wheel drivetrane.

Please note …the $3,000 “full self-driving capability” has been removed.

Also, be aware… that full federal tax credit ends on December 31st

Not every buyer will be eligible for the tax credit…so check you delivery
schedule careful.

The credits for next year will be cut in half for six months, to $3,750, then $1875 after six months.

https://www.irs.gov/businesses/plug-in-electric-vehicle-credit-irc-30-and-irc-30d

https://youtu.be/olPfLwdm7tU