$7500 business tax credit

[Vegetaban]

There’s no indication it can be in any publication I’ve seen, and I highly doubt it when anyone could come in with a new “business” to get a discount right away.

Makes sense. My family business has been in operation for 20 years, so we would just take out of taxes later then. Either way is good with us.

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[NaptownRick]

Did the $7,500 come out at the time of purchase or will it come off at tax time?

The clean vehicle credit happens at tax time, not at purchase, and the way you file depends on the structure of your company, the information is below:

How to claim the credit
Partnerships and S corporations must file Form 8936, Clean Vehicle Credits.

All other taxpayers report this credit on line 1y in Part III of Form 3800, General Business Credit.

Rick

 

[Brandon708]

Did the $7,500 come out at the time of purchase or will it come off at tax time?

*”Tax Credit”

 

[GatorCyber]

The clean vehicle credit happens at tax time, not at purchase, and the way you file depends on the structure of your company, the information is below:

How to claim the credit
Partnerships and S corporations must file Form 8936, Clean Vehicle Credits.

All other taxpayers report this credit on line 1y in Part III of Form 3800, General Business Credit.

Rick

Form 8396 has $80,000 purchase price limit:

*Has a manufacturer's suggested retail price of not more than $55,000 ($80,000 for a van, sport utility vehicle (SUV), or pickup truck);

I believe this thread has a lot of misinformation in it.**

 

[The Tumbler]

S Corp
Real estate brokerage and development

No Income or price limitations
$7500 tax credit and accelerated depreciation via 179

Total should be around $35-40k in savings via tax benefits

 

[mongo]

Form 8396 has $80,000 purchase price limit:

*Has a manufacturer's suggested retail price of not more than $55,000 ($80,000 for a van, sport utility vehicle (SUV), or pickup truck);

I believe this thread has a lot of misinformation in it.**

That's a 2023 form.
Regardless, the 45W Qualified Commercial Clean Vehicle Credit, not to be confused with the 30D Clean Vehicle Credit, has no MSRP/ AGI restrictions, nor mineral/ component exemption.

It is not a point of sale credit, but a business could immediately start adjusting their quarterly tax payments.

 

[NaptownRick]

Form 8396 has $80,000 purchase price limit:

*Has a manufacturer's suggested retail price of not more than $55,000 ($80,000 for a van, sport utility vehicle (SUV), or pickup truck);

I believe this thread has a lot of misinformation in it.**

You're looking at the normal clean vehicle credit, this thread has been about the commercial clean vehicle credit, part V on the form 8936.

Most of us know the Cybertruck would not qualify for the standard clean vehicle credit until there is a AWD non-foundation available, or single motor RWD version.

As I've said before several times in this thread, everyone should check with their CPA as there are other limitations, as with most things IRS there is nothing straightforward!

I would not say there is misinformation in this thread, but that each person may have a different situation. Hopefully this thread helps a business owner who can take advantage of the commercial credit, or the section 179 deduction.

Rick

 

[GatorCyber]

Tesla has a link to fleet sales for the commercial tax credit.
My understanding was it was for C Corps, and would have to be registered/titles to business?

 

[Johnelrod12]

Buying the Cybertruck for our lawn care business. Use about $500 in fuel a month just with our F150. Don’t plan on wrapping it with business logos in case we want to use it for real estate when we become brokers or other purposes. The possibilities are endless. The AC better not break on us because it’s hot as Hades down here in Florida. Need those ventilated seats asap!

 

[trentsize]

Form 8396 has $80,000 purchase price limit:

*Has a manufacturer's suggested retail price of not more than $55,000 ($80,000 for a van, sport utility vehicle (SUV), or pickup truck);

I believe this thread has a lot of misinformation in it.**

There is a difference between the business and personal credits. Business use does not have the same MSRP limit.

 

[trentsize]

Tesla has a link to fleet sales for the commercial tax credit.
My understanding was it was for C Corps, and would have to be registered/titles to business?

I believe the fleet purchase is for multiple vehicles. There’s an option for ordering as a business on the app order process. There’s no requirement for it to be a C-corp

 

[GatorCyber]

That's a 2023 form.
Regardless, the 45W Qualified Commercial Clean Vehicle Credit, not to be confused with the 30D Clean Vehicle Credit, has no MSRP/ AGI restrictions, nor mineral/ component exemption.

It is not a point of sale credit, but a business could immediately start adjusting their quarterly tax payments.

I took the limit from the above referenced Form 8396

 

[GatorCyber]

You're looking at the normal clean vehicle credit, this thread has been about the commercial clean vehicle credit, part V on the form 8936.

Most of us know the Cybertruck would not qualify for the standard clean vehicle credit until there is a AWD non-foundation available, or single motor RWD version.

As I've said before several times in this thread, everyone should check with their CPA as there are other limitations, as with most things IRS there is nothing straightforward!

I would not say there is misinformation in this thread, but that each person may have a different situation. Hopefully this thread helps a business owner who can take advantage of the commercial credit, or the section 179 deduction.

Rick

Your CPA said you can get the commercial credit for $7,500 and title it in your name? Or your biz? (I just got my VIN and have it in my name as of now)

 

[NaptownRick]

Your CPA said you can get the commercial credit for $7,500 and title it in your name? Or your biz? (I just got my VIN and have it in my name as of now)

It's titled in my company's name, Type S corp, I started it out that way in the Tesla app when I configured back in December, had to put all my business info into the app, as well as my personal info as the business owner.

Rick

 

[mongo]

I took the limit from the above referenced Form 8396

The New Clean Vehicle Credit (personal) and the Qualified Commercial Clean Vehicle Credit (business) are two completely different things. Further:

(3) NO DOUBLE BENEFIT.—No credit shall be allowed under this section with respect to any vehicle for which a credit was allowed under section 30D.

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