Commercial Clean Car Credit -Whats the process?

[robt614]

For those who have recently purchased, and taken advantage of this credit, what has been your experience? Im a bit confused about the delivery day requirements. Most of my questions are related to the loan, and title. I have always used personal vehicles, and claimed mileage, but due to the incentives, I am considering putting this in my business name. I have a 10 year old LLC, and weighing options. My delivery date should be in the next week or two. I did talk to a CPA, and he thinks the $7500 could be deducted at time of purchase, any truth to this? He is reading Sec45w and states there is cross references to Sec 30d as the reasoning. Any real world experience is welcome. Thanks.

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[elonmu5k]

I am in the same process, I pick up the truck on Sunday. I am buying and registering it through my LLC. My accountant said I would get the credit but I didn’t ask about it being point of sale. Currently my loan is conditionally approved upon verification of my business name and address, and has been there for a week now. No updates from Tesla since.

Alternatively, I originally applied using my personal information and had financing approved in minutes. But I heard my LLC had to be on the registration to get the tax credit and so I changed it.

 

[robt614]

I am in the same process, I pick up the truck on Sunday. I am buying and registering it through my LLC. My accountant said I would get the credit but I didn’t ask about it being point of sale. Currently my loan is conditionally approved upon verification of my business name and address, and has been there for a week now. No updates from Tesla since.

Alternatively, I originally applied using my personal information and had financing approved in minutes. But I heard my LLC had to be on the registration to get the tax credit and so I changed it.

Was this financed through Tesla / Wells Fargo?

 

[elonmu5k]

Was this financed through Tesla / Wells Fargo?

Yes

 

[24tex24]

Commercial credit is not available for point of sale - you have to wait to file your taxes. Also, if you have a single member LLC you use for business and it is a disregarded entity for tax purposes, you don't need to put the truck in the business name since everything flows through to your personal Schedule C on your 1040.

Another key point - the credit is only available to the extent you have business income to use it. In other words, you have to have at least 7500 in tax liability from your business to use the full 7500 credit. If you only have $100 in business income, you only get to use 100 of the credit.

For business owners, you can basically write off a lot of the truck cost in the year you put it into service. 2024 §179 deduction is $30,500; then you get 60% bonus depreciation on the remaining basis (original cost less the $30,500 §179 deduction).

 

[elonmu5k]

Commercial credit is not available for point of sale - you have to wait to file your taxes. Also, if you have a single member LLC you use for business and it is a disregarded entity for tax purposes, you don't need to put the truck in the business name since everything flows through to your personal Schedule C on your 1040.

Another key point - the credit is only available to the extent you have business income to use it. In other words, you have to have at least 7500 in tax liability from your business to use the full 7500 credit. If you only have $100 in business income, you only get to use 100 of the credit.

For business owners, you can basically write off a lot of the truck cost in the year you put it into service. 2024 §179 deduction is $30,500; then you get 60% bonus depreciation on the remaining basis (original cost less the $30,500 §179 deduction).

Do single member LLCs qualify for the credit? My accountant said it had to be a multi member LLC.

 

[24tex24]

Do single member LLCs qualify for the credit? My accountant said it had to be a multi member LLC.

Not true. To claim the credit, Partnerships and S Corporations [this would include LLCs electing to be taxed as partnerships or S corporations] must file Form 8936 (qualified plug-in electric drive motor vehicle credit). All other taxpayers are not required to complete Form 8936 if their only source for this credit is a Partnership or S corporation. Instead, they can report this credit directly on Form 3800, General Business Credit.

 

[Johnelrod12]

You will have to wait until you file your taxes. Cybertruck doesn’t have the approval from the IRS yet for immediate credit at purchase.

 

[TTP222]

Not true. To claim the credit, Partnerships and S Corporations [this would include LLCs electing to be taxed as partnerships or S corporations] must file Form 8936 (qualified plug-in electric drive motor vehicle credit). All other taxpayers are not required to complete Form 8936 if their only source for this credit is a Partnership or S corporation. Instead, they can report this credit directly on Form 3800, General Business Credit.

Just want to say thank you for all of your information here. I had asked these questions on the Reddit sub and got nowhere.

I have a single member LLC that I get paid through and your info has changed everything for me. I think I might just get a CT by the end of the year instead of paying $7500 to the IRS!

 

[robt614]

Just want to say thank you for all of your information here. I had asked these questions on the Reddit sub and got nowhere.

I have a single member LLC that I get paid through and your info has changed everything for me. I think I might just get a CT by the end of the year instead of paying $7500 to the IRS!

Your very welcome! I spent way too long determining this for myself. I have outlined what I intend to do with my accountant (i suggest everyone do the same), and will post his response and my actual day of delivery experiences. If I don't post that, its because I'm driving around everywhere with a giant grin on my face. Been a loooong time coming and I couldn't be more excited. It would help Tesla if there were clearer guidelines on the process, but I understand them staying out of any IRS conflicts that could arise. Glad I could bring some clarity.

 

[Brandon708]

In addition to what 24tex24 said. The vehicle also doesn't have to be under $80k to get the credit if you purchase it under a business. You can get a 120k Foundation Cyberbeast and qualify for the $7,500 tax credit and also apply Section 179 special deprecation in the first year.

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