IRS update: tax credit can be claimed if down payment placed by September 30

[Beetlebug62]

So, on Thursday, the IRS issued a FAQ to address the early termination of various energy credits:

Here's the direct link: https://www.irs.gov/newsroom/faqs-f...-known-as-the-one-big-beautiful-bill-act-obbb

And they list the various expiring credits. For most of us, item 30D is of interest:

But, critically, here's the very next section explaining what "acquired" means:

A payment "includes a nominal downpayment or a vehicle trade-in". So, the $250 you put down when you order your Cybertruck should be enough. Of course, you have to complete the transaction by buying the truck, but you meet the deadline by putting a downpayment on a contract.

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[HaulingAss]

So, on Thursday, the IRS issued a FAQ to address the early termination of various energy credits:

Here's the direct link: https://www.irs.gov/newsroom/faqs-f...-known-as-the-one-big-beautiful-bill-act-obbb

And they list the various expiring credits. For most of us, item 30D is of interest:

But, critically, here's the very next section explaining what "acquired" means:

A payment "includes a nominal downpayment or a vehicle trade-in". So, the $250 you put down when you order your Cybertruck should be enough. Of course, you have to complete the transaction by buying the truck, but you meet the deadline by putting a downpayment on a contract.

I'm not for complexity in the tax code, but this needed to be changed. Previously when a tax credit expired on a certain date, you had to take physical delivery and that created problems with edge delivery cases. Now, you just have to sign and make a down-payment and you have certainty that you are still eligible, even if your vehicle delivery was delayed for reasons beyond your control.

Thanks for sharing this. It's a smart move because it will smooth out the financial impact to automakers over two quarters (by having a lot of last-minute "overflow" sales into the quarter without subsidies).

In other words, the federal subsidies are still ending, but by saying "get your EV subsidy now or forever hold your peace". The only question is how long the backlog for new EVs be when the month of September closes out? And how much that will support the price of existing EVs.

 

[tingmo13]

Tesla can now release Juniper Performance & 7 seater on September, 20th.

 

[not_elon_]

Thanks evil incarnate!

 

[HaulingAss]

Tesla can now release Juniper Performance & 7 seater on September, 20th.

I guess it's possible, if so, Elon really fooled us!

 

[Sousray]

I want to know if I can go back to Oct 2024 and claim a credit for my $79990 CT???

 

[Griswold]

So, on Thursday, the IRS issued a FAQ to address the early termination of various energy credits:

Here's the direct link: https://www.irs.gov/newsroom/faqs-f...-known-as-the-one-big-beautiful-bill-act-obbb

And they list the various expiring credits. For most of us, item 30D is of interest:

But, critically, here's the very next section explaining what "acquired" means:

A payment "includes a nominal downpayment or a vehicle trade-in". So, the $250 you put down when you order your Cybertruck should be enough. Of course, you have to complete the transaction by buying the truck, but you meet the deadline by putting a downpayment on a contract.

How certain are we that the $250 order fee is sufficient?

The Tesla store is saying they're not sure and the guidance from management is to take delivery to be sure to get the $7500. Which makes sense from a sales standpoint too, but I want if possible to wait it out til end of quarter for a few reasons.

 

[Beetlebug62]

How certain are we that the $250 order fee is sufficient?

The Tesla store is saying they're not sure and the guidance from management is to take delivery to be sure to get the $7500. Which makes sense from a sales standpoint too, but I want if possible to wait it out til end of quarter for a few reasons.

Well, it's unusual that the IRS even gave as much clarity as it did. That means a lot to me. But, if you have any doubts, talk to your accountant.

Of course, it still takes a completed transaction. But, remember, the IRS is acknowledging full payment is not necessary by Sept 31. So, it depends upon what "nominal" means, but down payments tend to be small. And, either way, if your down payment is small or large, you still have to complete the transaction to get the tax credit which is the key.

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