I placed an order for a P85 last week and am scheduled to take delivery in February. A friend of mine told me he thinks 2013 is the last year for the federal tax credit for EVs. Can anyone with some insight comment?
Looks like it is phased out for a given manufacture when that manufacturer sells 200,000 qualifying vehicles.
The $7500 tax credit will be available for 2014 deliveries. It's not limited by year, but by manufacturer sales of plug-in cars. It will start to phase out for Tesla once Tesla hits cumulative sales of 200,000 plug-in cars. Tesla still has a ways to go.
However, the 30% tax credit for installing an HPWC or similar does expire 12/31/2013. It must be purchased and placed in service by the end of the year.
Loss of tax credit wouldn't be a deal killer-still got the "test drive Tesla Grin", but I'm glad the credit will continue to be offered.
@Big T Can you post a reference/link to the 30% tax credit for HPWC installation? I can't find anything.
Thank you in advance.
Here's one secondary reference:
Look at the bottom of the description. Has a link to IRS.
From form 8911, looks like it doesn't have to be a HPWC to get the 30% install credit. It could be a NEMA 14-50 in your garage. Better hurry.
I think there's a proposal to extend the number to 500,000. Don't have the link, tho'.
State of Washington gives an incentive of no sales tax (8.35% ~ $8,350) but it expires July, 2015.
Whatever the limit is or will be... I wonder how it will affect 500,000 car sales per year of Gen III cars.
Even at the 200K limit, TM has about 4 - 5 years to go before the credit is exhausted. That's the combined total for models S/E/X for the next 5 years.
I thought the 200K limit was for a specific model. New model - new limit.
No. the way I read the code/law. Each Manufacturer has the 200,000 vehicle limit, not 200,000 limit per model.
It's by company, not model
The good news is that Elon has said that the $35,000 target price for the Model E is without any tax credit, so he is not depending on this incentive to make the new car more affordable.
"No. the way I read the code/law. Each Manufacturer has the 200,000 vehicle limit, not 200,000 limit per model."
So, the Prius must be pretty close to end of tax credit limit.
Here's the ruling...
"The credit will begin to be phased out for each manufacturer in the second quarter following the calendar quarter in which a minimum of 200,000 qualified plug-in electric drive vehicles have been sold by that manufacturer for use in the United States"
So, if 200,000 Tesla's are sold in any quarter, the tax credit begins to shrivel starting in the next quarter.
Not quite. If 200,000 Teslas are sold in the total history of the company, the tax credit starts to shrivel starting in the next quarter after that point.