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GREEN Act Gives Tesla a New $7,000 Tax Credit

Sounds great but I cannot find any info if this will be retroactive.

I purchased in Nov 2020 so if this passes can I claim on 2020 taxes?
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Comments

  • If passed it does not appear to be retroactive.
  • Motivation with this tax credit is to encourage NEW buyers and speed up adoption while the new administration is in place (and can take credit for the increase in numbers).
  • I hope it doesn't drag on forever, id assume its impacting orders.
  • So is this in fact in place already? What does this mean for all those that have a Tesla on order but have not yet received it?
  • > @natedgr8 said:
    > So is this in fact in place already? What does this mean for all those that have a Tesla on order but have not yet received it?

    I'm not so sure best I can tell as of today is past orders are screwed, Q1 deliveries probably also out of luck, Q2 up in the air for now.
  • order date doesn't matter. Delivery date is what the government cares about.
  • Currently the way the law is written it will only apply to cars purchased after it is passed. I bought mine in November if last year do it does not help me.

    I am still pleased that it will encourage more people to purchase EVs.

    If the battery range increases suddenly(unlikely) I may sell mine and get a new one. I will get heated steering wheel, perhaps new console and increased range. I will still lose money due to depreciation but tax credit will help
  • When will it pass? I hope soon
  • I don’t think it’s likely to pass soon. Looks like was introduced on 2/4/2021 and has been referred to the ways and means committee, but no date set for hearing. My delivery date in my MY is March 8, so I’m not holding my breath to be eligible for the credit. Here is the link to the bill information if you are interested
  • Under the current Trump administration the bill is a long shot.

    Oh wait. It's a shoe-in.
  • > @Erinm29 said:
    > I don’t think it’s likely to pass soon. Looks like was introduced on 2/4/2021 and has been referred to the ways and means committee, but no date set for hearing. My delivery date in my MY is March 8, so I’m not holding my breath to be eligible for the credit. Here is the link to the bill information if you are interested
  • With Hope tax year 2021
  • Is this part of stimulus or a separate bill ?
  • Working on my 2020 taxes, H&R Block software gave a $2,500 federal tax credit for Tesla.
  • > @TruckDaddy said:
    > Working on my 2020 taxes, H&R Block software gave a $2,500 federal tax credit for Tesla.

    For what??? is it a state refund???
  • Federal.
  • Google telling me that Congress passed
    H.R.6049 - Energy Improvement and Extension Act of 2008 on 9/29/2008 (introduced on 5/14/2008 / I.e took 5 months to passes), which Created the tax credit for electric vehicles purchased January 1, 2009, and December 31, 2014.
    I.e this new bill, Green Act, can be passed by let us say July 2021, and can be effective either July/August or may be Jan 2022.
  • > @TruckDaddy said:
    > Working on my 2020 taxes, H&R Block software gave a $2,500 federal tax credit for Tesla.

    You are not eligible for a federal tax credit for Tesla. Check your entries in your input screen. This Green act has been on the shelf for a while. It is only speculation that it will get passed. The government has already spent 6 trillion on pandemic relief with a 1.9 trillion bill on the table. People and small businesses are still struggling. Giving away nearly 6 billion for 800,000 car purchases to people who could afford and who would be buying a Tesla or Cadillac anyway is not going to move the needle much for widespread EV ownership. Bringing a $25,000 EV to market in a year or so will put more Teslas on the road.
  • The new bill if passed by the senate will extend the limit to 600,000 and then reinstate the phase out.
    https://uscode.house.gov/view.xhtml?req=(title:26%20section:30D%20edition:prelim)

    Meaning, that the new phase out can be claimed in 2021 as tesla is beyond 600k. It is not retroactive for people who have already filed 2020 taxes as it can not be double claimed. Though all people in 2021 can file for the phaseout in 2022.

    Hope this helps, the math get more technical.


    "Im an engineer, that means I solve problems."
  • Doubt it will be retroactive, they want to produce commerce. I assume it is to help boost the economy so I hope they get it out soon. Assuming it is applied to Tesla and GM we would get the full 7k credit correct, doesnt look like there is any income issues for the new vehicles . Any ideas on reasonable timelines???
  • I’m not a lawyer, but reading through the bill it sounds like the proposal is to only include new purchases that happen after the bill is signed and becomes effective
    “ IN GENERAL.—In the case of any new qualified plug-in electric drive motor vehicle sold after the date of the enactment of the GREEN Act of 2021—” section IV page 40.
    I guess the date of enactment could mean the beginning of the tax year but that isn’t explicitly stated.

    https://mikethompson.house.gov/sites/mikethompson.house.gov/files/GREEN%20Act%202021%20Bill%20Text.pdf
  • > @Erinm29 said:
    > I don’t think it’s likely to pass soon. Looks like was introduced on 2/4/2021 and has been referred to the ways and means committee, but no date set for hearing. My delivery date in my MY is March 8, so I’m not holding my breath to be eligible for the credit. Here is the link to the bill information if you are interested

    If you didn't use a referral code text your delivery specialist to add on david25498 New orders can use https://ts.la/david25498 Congrats and enjoy your new car next month!
  • > @Geech72 said:
    > I’m not a lawyer, but reading through the bill it sounds like the proposal is to only include new purchases that happen after the bill is signed and becomes effective
    > “ IN GENERAL.—In the case of any new qualified plug-in electric drive motor vehicle sold after the date of the enactment of the GREEN Act of 2021—” section IV page 40.
    > I guess the date of enactment could mean the beginning of the tax year but that isn’t explicitly stated.
    >
    > https://mikethompson.house.gov/sites/mikethompson.house.gov/files/GREEN%20Act%202021%20Bill%20Text.pdf

    In the context, this is just a declaration of the rules applied to new vehicles after the enactment date. Meaning, that they only count in the current phase being sold.



    I have reviewed the updated version you have listed and you are correct. They changed the following.

    (c) EFFECTIVE DATE.—
    (1) LIMITATION.—The amendment made by
    subsection (a) shall apply to vehicles sold after the
    date of the enactment of this Act.
    (2) EXTENSION.—The amendment made by
    subsection (b) shall apply to vehicles sold after December 31, 2021.

    Disappointing they added this limitation. You will have to call your congress and senator to ask for modifications.

    https://www.congress.gov/bill/117th-congress/house-bill/848/text?r=7&s=1

    "Im an engineer, that means I solve problems."
  • I just reviewed the bill. Re: Income limits. Not sure this has been highlighted. Assuming not amended further - I suspect this section will limit/expire the benefit for most of Tesla's current market...

    “(b) Limitations.—

    “(1) SALE PRICE.—The credit allowed under subsection (a) with respect to sale of a vehicle shall not exceed 30 percent of the sale price.

    “(2) ADJUSTED GROSS INCOME.—The amount which would (but for this paragraph) be allowed as a credit under subsection (a) shall be reduced (but not below zero) by $250 for each $1,000 (or fraction thereof) by which the taxpayer’s adjusted gross income exceeds $30,000 (twice such amount in the case of a joint return).
  • > @uab_98522111 said:
    > I just reviewed the bill. Re: Income limits. Not sure this has been highlighted. Assuming not amended further - I suspect this section will limit/expire the benefit for most of Tesla's current market...
    >
    > “(b) Limitations.—
    >
    > “(1) SALE PRICE.—The credit allowed under subsection (a) with respect to sale of a vehicle shall not exceed 30 percent of the sale price.
    >
    > “(2) ADJUSTED GROSS INCOME.—The amount which would (but for this paragraph) be allowed as a credit under subsection (a) shall be reduced (but not below zero) by $250 for each $1,000 (or fraction thereof) by which the taxpayer’s adjusted gross income exceeds $30,000 (twice such amount in the case of a joint return).

    So over 68K single or 138K joint get no rebate? If Tesla starts selling the 25K car it might help sales in a significant way otherwise not so much. Most families purchasing $50,000 plus cars would earn over 100K per year (but maybe not)?
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