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How does the tax credit work?

How does the tax credit work?

Is it anything like Solar? For instance, with solar PV you only get your credit only IF you end up paying tax after all deduction. In example, you made 100k, paid 25k in tax, after all deduction you get a refund of 20k you're still paying $5k in tax so you're eligible up to $5k on the solar tax rebate. If you didn't work or didn't have to pay tax for the year then you don't qualify at all.

Is it the same thing?

Don Schmidt | 02/04/2016

As we say over in the carpenter shop, "You've hit the nail on the head."

jeff.machamer | 02/04/2016

Correct, but if you can make $100k and only end up paying $5k in taxes, please let me know who you filed your taxes with!

I think that the majority or the people that can afford to buy this car (or put down $1k this early) will pay more than $7500 in taxes.

proven | 02/04/2016

Yes, it's a non-refundable credit, same as the solar credit except that you can carry forward the solar credit but not the EV credit.

borodinj | 02/04/2016

Keep in mind that the full federal tax credit of $7500 starts to phase out once the manufacturer reaches 200K vehicles delivered, and since over 100K S's and X's will already be sold before the 3 even launches, only 3's delivered in the first year will be eligible for the full credit.

Chunky Jr. | 02/04/2016

Phases out after 200K vehicles, or first 200K vehicles sold in US only?

fsubruno1980 | 02/04/2016

Do you qualify for the credit based on when you place your order or when you take delivery?

Chunky Jr. | 02/04/2016

Delivery. They need proof you actually have the car (VIN#).

jtuazon18 | 02/04/2016

I believe in the US only... I'm about 95% certain I read that somewhere

jtuazon18 | 02/04/2016

I believe in the US only... I'm about 95% certain I read that somewhere

borodinj | 02/04/2016

Phase out is all models by manufacturer that qualify for the credit, so for Tesla, when all delivered vehicles in the US equal 200K, then the phase out begins. After 200K vehicles in the US, then the tax credit is 50% for the first quarter or two following the quarter in which the 200K threshold is met, then 25% of the credit for the following quarter, then no credit thereafter. The 200K number is based on US deliveries only, so vehicles delivered outside of the US don't count towards the 200K number.

Obi Wan | 02/04/2016

In Ontario, I'll get about $14 000 rebate off the cost, after taxes... so, if it cost me $40 000, I'd pay $40 000 + 13% - 14 000 = $31 200. With our Canadian dollar being so low, it'll be closer to $43 000 CDN. We have a maximum rebate up to $14 000 up to a car valued at under $75 000.