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Will tax credit and CA incentive ever deplete?

Will tax credit and CA incentive ever deplete?

Hi,
Will the federal tax credit (7500) and CA incentive (2500) ever get depleted? If so, do we have an idea as to how long it will last?

Thanks

kwshepherd | July 9, 2014

Federal goes away for each car manufacturer after they build a certain amount of cars. I believe its 200,000 vehicles. State is approved for a certain amount of time and then has to be approved again to continue. It also had a set amount for the fund and once that is depleted each year they have to apply for additional funding. That usually gets taken care of. This year the funds ran out around March so anyone who purchased after then has to wait until September or later to receive their rebate.

sberman | July 9, 2014

"Ever get depleted"? Of course!!

The Federal credit is already scheduled to disappear when the auto maker makes some number of eligible cars that is way in the future for Tesla. And the CA credit runs out when the funds for it are depleted. I believe this has already happened, and the CA credit had to be renewed by legislation.

Tax credits' longevity is up to the whims of politicians.

fact200 | July 9, 2014

Dunno if anyone has noticed, but for those ordering from CA, the 2,500 rebate started to re-appear on the order page under incentives. Looks like the rebate plan got funding approval back on Jun 26.

http://www.ucsusa.org/news/press_release/calif-funds-low-carbon-transpo-...

sagebrushnw | July 10, 2014

The credit begins to phase out for vehicles at the beginning of the second calendar quarter after the manufacturer produces 200,000 eligible plug-in electric vehicles (i.e., plug-in hybrids and EVs) as counted from January 1, 2010. IRS will announce when a manufacturer exceeds this production figure and will announce the subsequent phase out schedule.