DIDN’T GET THE $7,500 FEDERAL TAX CREDIT!

[Kevin Burns]

I bought a Foundation Series All-Wheel Drive Cybertruck and took delivery on September 28, 2024. My CPA filed my 2024 Federal income tax return, but the IRS bumped my return back saying that I wasn’t eligible for the $7,500 tax credit. I got a copy of IRS Form 8936 and observed that there is an upper limit on which electric vehicles are eligible. Pick-up trucks have a maximum of $80,000. I paid more than $80,000. Tesla’s marketing Ho’s didn’t point that out on the website. I assumed that my Cybertruck was eligible.
This explains why Tesla is now selling Cybertrucks for $79,990. You don’t want to put on any add-ons that would push the sales price above $80,000, if you want the $7,500 tax credit. At $79,990, Tesla’s website says that you are eligible for the $7,500 Federal Tax Credit. I’m assuming that destination charges $1,995 are not included in the sales price.
Not buying another Tesla for 4 years.

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[SCTesla]

I bought a Foundation Series All-Wheel Drive Cybertruck and took delivery on September 28, 2024. My CPA filed my 2024 Federal income tax return, but the IRS bumped my return back saying that I wasn’t eligible for the $7,500 tax credit. I got a copy of IRS Form 8936 and observed that there is an upper limit on which electric vehicles are eligible. Pick-up trucks have a maximum of $80,000. I paid more than $80,000. Tesla’s marketing Ho’s didn’t point that out on the website. I assumed that my Cybertruck was eligible.
This explains why Tesla is now selling Cybertrucks for $79,990. You don’t want to put on any add-ons that would push the sales price above $80,000, if you want the $7,500 tax credit. At $79,990, Tesla’s website says that you are eligible for the $7,500 Federal Tax Credit. I’m assuming that destination charges $1,995 are not included in the sales price.
Not buying another Tesla for 4 years.

The 1995 does not factor in. 2024 CTs are not eligible period, regardless of pricing.

Even if it was discounted to 60k, it's not eligible. Pwople told you this weeks ago.

 

[Kevin Burns]

The 1995 does not factor in. 2024 CTs are not eligible period, regardless of pricing.

Even if it was discounted to 60k, it's not eligible. Pwople told you this weeks ago.

I try to follow the CyberTruck Owners Forum, but I don’t read everything. All the ads and all the posts are overwhelming.

 

[UberNoob]

You know what they say about assuming. That’s on you. You should have at the very least asked the question. A bit more effort and the search button on this form would have told you all you need to know about the credits. It also stated on Tesla web, confirming your eligibility for the credit is on you as every tax situation is different.

psst, prolly won’t be a tax credit / rebate in 4 years either.

I’m sad too my Beast also didn’t qualify, 121k sticker, another 20k in tax title and register. And even if Elon priced it at 50k making the truck super eligible beings my income is 150k+, no qualify.

#notfinancialadvice

 

[ehua329]

Was the truck for business or personal? If it is for business? There is no MSRP limitation and it should offset your taxable business income. For personal, 2024 models are not eligible.

 

[cybercricket]

I bought a Foundation Series All-Wheel Drive Cybertruck and took delivery on September 28, 2024. My CPA filed my 2024 Federal income tax return, but the IRS bumped my return back saying that I wasn’t eligible for the $7,500 tax credit. I got a copy of IRS Form 8936 and observed that there is an upper limit on which electric vehicles are eligible. Pick-up trucks have a maximum of $80,000. I paid more than $80,000. Tesla’s marketing Ho’s didn’t point that out on the website. I assumed that my Cybertruck was eligible.
This explains why Tesla is now selling Cybertrucks for $79,990. You don’t want to put on any add-ons that would push the sales price above $80,000, if you want the $7,500 tax credit. At $79,990, Tesla’s website says that you are eligible for the $7,500 Federal Tax Credit. I’m assuming that destination charges $1,995 are not included in the sales price.
Not buying another Tesla for 4 years.

Do you live in your own house and have a setup for a backup generator ? You can try to claim your CT as the battery storage, ask your CPA about that.

 

[SlegMD]

Sorry OP, all this is common knowledge around these parts. Also published on IRS.gov, if you did due diligence. Your bad.

 

[SCTesla]

Do you live in your own house and have a setup for a backup generator ? You can try to claim your CT as the battery storage, ask your CPA about that.

It doesn't qualify for that, either, if you drive it. If you can show it's not driven, maybe.

 

[Kevin Burns]

Instructions for 2024 form 8936:
“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);”

 

[cybercricket]

It doesn't qualify for that, either, if you drive it. If you can show it's not driven, maybe.

There is no such wording in the instructions last time I checked. From how I read it (and hence the need to defer to a CPA for the final opinion, since I am not a tax professional), if it's CAPABLE and AVAILABLE for use as a home backup battery then it qualifies for the battery credit. So the basic question that needs to be answered is: can you run your entire house from CT, and do so at any time ? If the answer is yes, then it qualifies for the battery credit.

https://www.irs.gov/pub/irs-pdf/p5968.pdf

 

[bigfoot2232]

I bought my cyber truck on January 31, four days before they announce the tax credit. Even though it’s a 2025 it doesn’t seem like it will qualify because I didn’t get the paperwork.

 

[SCTesla]

There is no such wording in the instructions last time I checked. From how I read it (and hence the need to defer to a CPA for the final opinion, since I am not a tax professional), if it's CAPABLE and AVAILABLE for use as a home backup battery then it qualifies for the battery credit. So the basic question that needs to be answered is: can you run your entire house from CT, and do so at any time ? If the answer is yes, then it qualifies for the battery credit.

https://www.irs.gov/pub/irs-pdf/p5968.pdf

This has been discussed before and examples were shown where people were rejected in trying this:

Costs allocable to a swimming pool, hot tub, or any other energy storage medium that has a function other than the function of such storage don't qualify for the residential clean energy credit.

This is the key aspect. If you use the truck for any function other than energy storage, it doesn't qualify.

 

[REM]

Fire your CPA.

 

[SCTesla]

Instructions for 2024 form 8936:
“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);”

That's not the only factor. Tesla needs to submit paper work for it to qualify and the battery materials are a critical portion starting last year. The CT didn't qualify until like February 2025. No 2024 CTs will qualify.

 

[Kevin Burns]

I have submitted and received tax credits for 3 Teslas. My CPA handled the tax credit. One of the cars was a Model Y. I think the IRS knows that Tesla’s qualify. Maybe

That's not the only factor. Tesla needs to submit paper work for it to qualify and the battery materials are a critical portion starting last year. The CT didn't qualify until like February 2025. No 2024 CTs will qualify.

I helped my son buy a 2023 Model Y. We took delivery in December of 2023. I got the tax credit. However, it appears that the Inflation Reduction Act changed how the qualification of the clean vehicle tax credit in 2024 is determined.
“At the time of sale, a seller must give you information about your vehicle's qualifications. Sellers must also register online and report the same information to the IRS. If they don't, your vehicle won't be eligible for the credit.”
Just want to share what I have learned about the Federal tax credit with potential CyberTruck owners.
I don’t regret buying the Foundation Series of the All-Wheel Drive Cybertruck.

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