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To qualify for the US Federal Tax Credit

"To qualify for the US Federal Tax Credit, the new vehicle must be purchased by the taxpayer, and not purchased for resale. The credit is applied when the taxpayer completes their annual tax forms. Qualification is contingent on Adjusted Gross Income."

Can we start some research on this?

I have a very gloomy feeling that the kind of people who can afford a Tesla will not be getting this Tax credit due to the last sentence. meaning, if you can afford one, you don't deserve a tax credit.

Let's start researching this people. This could make or break a lot of people's ability to get this car.

Help please.

Edit - "even if you owe no taxes for that credit to offset."

@Sudre_ it's possible for someone to be very wealthy, but make little or no income in a particular year, but yeah you're probably right. I was just providing the example to cover all the bases.

Someone who holds a lot of wealth in tax exempt municipal bonds might owe no taxes yet be able to afford a Tesla.

What if you buy both a Leaf and a Model S in one year ? Can you claim two credits ?

It seems like the tax form allows credits for two vehicles:
http://www.irs.gov/pub/irs-pdf/f8936.pdf

You enter the allowable credit for both vehicles on line 4 (and line 10).

And then it says you add both of those values together on line 11, so as far as I can tell, yeah, you could claim $15,000 for two cars.

Does anyone see anything that would indicate otherwise?

shop@frogandros - We bought a LEAF for my wife last weekend. If the Model S comes before the end of the year (Dec/Jan window), we will claim both in this tax year. My wife and I are both retired and my concern right now is having enough tax liability for $15K to offset, since it cannot be carried forward or applied to previous years. The LEAF purchase was not a planned event. The recent CA gas price spike put her over the edge. As much as I would like to have my Model S sooner rather than later, financially it would be better to put it "in service" Jan 1 and not worry about losing some of the credit.

Well, don't claim other deductions which are deferrable (assuming you have some).

Or draw some more from your IRA this year to get more tax liability.

@tesla.mrspaghet - The IRA draw is a great idea. I hadn't thought of that, and it would work for me if I need it. Thanks for the tip.

Then put the S in the IRA as a "collectables" asset? ;)

@stevenmaifert

The bill is in the mail :)


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