NO TAX CREDIT! Tesla Cybertruck 2024

[Fleetwood75]

Foundation Series qualify for a $7500 Clean Commercial Vehicle Credit.

And Section 179 bonus depreciation, although only 60% of the full purchase price in 2024 compared to 80% in 2023. Elon better sell me that truck in calendar year 2024 otherwise it drops to 40% next year.

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[Aces-Truck]

As I understand it, U.S. orders placed in 2024 will see the tax credit immediately. Whereas those who ordered in 2023 have to get their tax credit (if any) when they file their taxes. So we should know more, once someone gets the invite, and orders the FS-AWD CT.

I had another thought, based on what @FarAway cited. What is considered unattached accessories? The storage bins for under the rear seat could be sold to you as a DIY kit. You install them yourself. same with tiedown hooks. I haven't looked down the list of everything the $20k gets you. But maybe Tesla ala-carted these accessories purposely?

 

[Woodrick]

As I understand it, U.S. orders placed in 2024 will see the tax credit immediately. Whereas those who ordered in 2023 have to get their tax credit (if any) when they file their taxes. So we should know more, once someone gets the invite, and orders the FS-AWD CT.

I had another thought, based on what @FarAway cited. What is considered unattached accessories? The storage bins for under the rear seat could be sold to you as a DIY kit. You install them yourself. same with tiedown hooks. I haven't looked down the list of everything the $20k gets you. But maybe Tesla ala-carted these accessories purposely?

The Foundation Series is sold as a trim, just like other cars or trucks often have different trim levels, which are often just bundles of options such as floor mats. They are listed on the MSRP and that's what determines the cost. Go above $80k and you loose the credit.
For those who want the dual and also want the tax credit, you will essentially be able to add NO options to the vehicle. Things like autopilot will have to be added after the sell and therefore cannot be rolled into the loan.

If you don't order the Fonders Edition, you can indeed get the tax credit, and many, if not all of the additional features, but you'll have to get the car in one transaction and everything else in another.

 

[rudedawg78]

 

[HitchHiker71]

As I understand it, U.S. orders placed in 2024 will see the tax credit immediately. Whereas those who ordered in 2023 have to get their tax credit (if any) when they file their taxes. So we should know more, once someone gets the invite, and orders the FS-AWD CT.

I had another thought, based on what @FarAway cited. What is considered unattached accessories? The storage bins for under the rear seat could be sold to you as a DIY kit. You install them yourself. same with tiedown hooks. I haven't looked down the list of everything the $20k gets you. But maybe Tesla ala-carted these accessories purposely?

We already know - as the IRS gives everyone a list of all qualifying vehicles for 2024, and the CT is not on it - and the Tesla website clearly states that the CY may qualify later in 2024.

 

[Tedacules]

Looks like no tax credit for the Cybertruck in 2024.

Sorry to be the bearer of bad news but figured I would get out there so those placing orders are not surprised.

((BTW, the Ford Lighting ($7500) and Rivian ($3750) still qualify for the credit.))

From, fueleconomy.gov
The TESLAs that still qualify.

Has to be under 80k to get the credit.

 

[Rutrow]

For those who want the dual and also want the tax credit, you will essentially be able to add NO options to the vehicle. Things like autopilot will have to be added after the sell and therefore cannot be rolled into the loan.

That's incorrect. Software is not physically attached to the vehicle, so doesn't count as "dealer installed options", neither is premium connectivity, nor mobile wall connector, gateway, nor bins dividers, sunshades, etc. unless the "dealer" attaches them where they belong. If they're tossed into the frunk or vault storage for the buyer to snap into place, those options don't count against the MSRP cap.

 

[Rutrow]

Don't take it personally Gus. You're way better than the average bear.

You don't want to be smarter than the average bear...

You want to be smarter than the average Bull

 

[Woodrick]

That's incorrect. Software is not physically attached to the vehicle, so doesn't count as "dealer installed options", neither is premium connectivity, nor mobile wall connector, gateway, nor bins dividers, sunshades, etc. unless the "dealer" attaches them where they belong. If they're tossed into the frunk or vault storage for the buyer to snap into place, those options don't count against the MSRP cap.

Yes it is, it has always been, and it is in every other car or truck that has existed.

Software is all over existing cars, you don't get the ability to price deduct it. Most manufacturers offer varying trim levels and they include things like TACC. Well, that's the same thing.

This argument has existed in the Tesla community for a long time and the answer is always what I just said.

Whatever is in the MSRP is what the IRS uses, I believe.

 

[cvalue13]

As I understand it, U.S. orders placed in 2024 will see the tax credit immediately. Whereas those who ordered in 2023 have to get their tax credit (if any) when they file their taxes.

youre Speaking in terms of “order,” but that’s incorrect

the relevant time period is payment/possession

Regardless, nobody in 2023, and so long as selling Foundartion series, nobody for a while in 2024, will qualify for the Tax credit

 

[Rutrow]

Yes it is, it has always been, and it is in every other car or truck that has existed.

Software is all over existing cars, you don't get the ability to price deduct it. Most manufacturers offer varying trim levels and they include things like TACC. Well, that's the same thing.

This argument has existed in the Tesla community for a long time and the answer is always what I just said.

Whatever is in the MSRP is what the IRS uses, I believe.

Incorrect. (showing my work for those who don't trust my knowledge)

https://www.tesla.com/inventory/new/mx?arrangeby=relevance&zip=75270&range=200

 

[FarAway]

Incorrect. (showing my work for those who don't trust my knowledge)

https://www.tesla.com/inventory/new/mx?arrangeby=relevance&zip=75270&range=200

Not sure that is clear... at least from the IRS. Tesla says MSRP excludes software, the IRS does not explicitly say that. There seems to be a conflict, maybe Tesla has a letter from the IRS with a determination stating what they have said? I hope so. I would like to have a copy of that determination, if it exists, to stick in my folder.

Personally, having dealt with the IRS before, they can be persnickety about this stuff. I think their point of view will be the MSRP is the MSRP plus add-ons not dealer supplied.

From the Govt. website (no mention of software) IRS updates frequently asked questions related to new, previously owned and qualified commercial clean vehicle credits

Q4. How will I know what the MSRP is for a vehicle? (added December 29, 2022)
A4. The MSRP will be on the vehicle information label attached to each vehicle on a dealer’s premises. The MSRP for this purpose is the base retail price suggested by the manufacturer, plus the retail price suggested by the manufacturer for each accessory or item of optional equipment physically attached to the vehicle at the time of delivery to the dealer. It does not include destination charges or optional items added by the dealer, or taxes and fees.


To be clear, I have no dog in this fight, purely public service. I will not qualify for the credit regardless, I would hate to see someone counting on the credit financially to be surprised when they do not get it, or worse get themselves in a bind with the IRS. DYODD and Good luck!

 

[Rutrow]

"Physically attached"

You cut and pasted the operable phrase yourself. Showing your work would be as simple as presenting one tax payer who was denied the credit because the IRS ruled that software is "physically attached".

I contend there aren't any such taxpayers, and it's hard for me to prove a negative.

 

[Woodrick]

Incorrect. (showing my work for those who don't trust my knowledge)

https://www.tesla.com/inventory/new/mx?arrangeby=relevance&zip=75270&range=200

Great, you are indicating that the Foundation AWD will be able for the tax. If you could only convince Tesla if it.

 

[Rutrow]

Great, you are indicating that the Foundation AWD will be able for the tax. If you could only convince Tesla if it.

What is "attached" to the Foundation Series are: Optional Wheels and Tires, "Foundation" badging, and White Decor. If those have a combined cost over $10, then "attached" options put it over the MSRP limit.

I've been pleading with Tesla to declare that the bading costs $9 and that the wheels, tires and decor are included in the base price of the AWD CyberTruck. They already do this for the FSD hardware*. This way early buyers could take the PoS credit. Tesla could easily do this, reduce the out the door price by $7500 for many buyers, then, if they needed to, they could raise the price of these options in the future.

If the Foundation extras were limited to: FSD, Premium Connectivity, Powershare and Mobile Connector hardware, Sunshade, storage bins and dividers, cargo hooks, etc., they could make the argument that those are the things they charge the $20,000 extra for.

*from the Monroney sticker...

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