Studio711.com – Ben Martens

Federal EV Tax Credit?

Welcome to Tesla Tuesday! We’ll see how long the series last but there are a few things that might be interesting to share so I’ll put them up on Tuesdays.

Last Tuesday was the very long post about our rationale for ordering a Model Y. One thing that wasn’t in there was any mention of federal tax incentives. D.C. has been kicking around so many different options for most of this calendar year, that we made our purchase assuming that there won’t be any savings when we take delivery. Teslas don’t qualify for any of the current federal tax credits because Tesla has sold too many vehicles. The only thing we get here in Washington state is no sales tax on the labor for installing chargers in our homes.

Some of the variables in the proposals are caps on the MSRP of the vehicle, caps on the salary of the purchaser, whether or not unions were involved in the assembly of the vehicle, how much of it is made in America, how many EVs the company has sold previously, and differences in how the money is given back (tax credit, point of sale, etc.) These things change dramatically with every iteration so I don’t get too invested in any of them, but the current bill would give us between $7,500 or $10,000 back as a tax credit. It’s notable that this is currently worded as a non-refundable tax credit which means that if your tax bill is less than the credit, you don’t get the difference back in cash.

This whole thing is obviously fraught with politics. Plenty of union lobbyists are working to keep Tesla from getting any benefit. Additionally, each side of the aisle has their own views on government spending combined with thoughts about whether an incentive like this actually drives EV adoption and whether or not that’s good for the environment and/or for our citizens. I have my own thoughts about how the government takes my money and uses it, but whether I would personally vote for it or not, you can bet that if they’re handing out money, I will be taking advantage of it. Until then, I’m not holding my breath and I’m prepared to pay the number on the screen when we clicked Order.

Disclaimer: I own Tesla stock.