Under the new Biden EV credit proposal, will the Cybertruck qualify for Federal Tax Credit?

[Old Pro]

As best I can understand, the Cybertruck purchases completed in 2023 -2024 will be receive a Federal Tax Credit? $7,500?
Or will that potential amount differ from 2023 to 2024?
Or NOT $$$? NO Credit will apply?

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[electricAK]

CT models that cost under $80,000 *will* qualify for $3,750 in credit, assuming your income is under $150k (or $300k if married). They also *might* qualify for an extra $3,750 if tesla can meet the battery material sourcing requirements. Currently nobody knows for sure if they will meet the battery sourcing requirements. Some seem to think it's likely Tesla can find workarounds to meet or circumvent the requirements, some think Tesla isn't motivated to even care. We know Musk is against the credits in general, and clearly Tesla doesn't need any extra demand.

Time will tell! It is interesting that GM and Ford just raised their EV prices by $7500, implying they believe they can qualify for the full credit. If they can, I don't see why Tesla wouldn't.

 

[Old Pro]

CT models that cost under $80,000 *will* qualify for $3,750 in credit, assuming your income is under $150k (or $300k if married). They also *might* qualify for an extra $3,750 if tesla can meet the battery material sourcing requirements. Currently nobody knows for sure if they will meet the battery sourcing requirements. Some seem to think it's likely Tesla can find workarounds to meet or circumvent the requirements, some think Tesla isn't motivated to even care. We know Musk is against the credits in general, and clearly Tesla doesn't need any extra demand.

Time will tell! It is interesting that GM and Ford just raised their EV prices by $7500, implying they believe they can qualify for the full credit. If they can, I don't see why Tesla wouldn't.

Thank you for the clear picture. I'll be ok with a $3,750 Federal Tax Credit. I think the California Tax Credit has been adjusted to $750 since we last bought our Model 3 in 10/18. Heck, I'll be happy to see my CT order come up before I'm age 70 on 5/23!

 

[Blue Steel]

Cybertruck Rebate Flowchart:
Is your income below the threshold?
Is your chosen CT model's MSRP under $80,000
Is your CT's battery's materials sourced from approved locations?

If you answer yes to all those, you're all set!

 

[cvalue13]

If you answer yes to all those, you're all set!

this might get you to $3,750.00, but not to $7,500

 

[Ogre]

this might get you to $3,750.00, but not to $7,500

Lots of questions around the materials sourcing and who will qualify.

 

[CyberGus]

My battery will be made of liberty and run on freedom

 

[cvalue13]

Lots of questions around the materials sourcing and who will qualify.

Sure, only meant to point out that the $7,500 max credit is now comprised of two separate $3,250 qualifying credits, one for source of battery minerals (what I took the prior comment to be about) and the other for battery components

 

[Ogre]

Sure, only meant to point out that the $7,500 max credit is now comprised of two separate $3,250 qualifying credits, one for source of battery minerals (what I took the prior comment to be about) and the other for battery components

Wasn’t meaning to correct you. Should have preface with “Indeed” or “Yes”.

There are piles of mis-information out there about this. The IRS will eventually have a guideline on which vehicles meet the criteria and for how much. Where the mineral requirement is weird is it doesn’t really seem to talk about what they mean by “40% of the materials”. Is that based on weight or value?

It said “Mined or Processed” in a free trade country. Australia has a huge chunk of the lithium mining right now. It’s processed in China.

Reverse-wise, what is “Processed”? Tesla is building a cathode material factory in Texas. Does that count or are they just counting the base process of turning ore into the raw chemicals they need?

The first $3,750 should be a slam dunk. I think until the Cybertruck is out we won’t know one way or the other.

 

[charliemagpie]

I am curious, there's talk about Tesla build a factory in Canada to service the east coast.

Would it still get the credit ?

 

[cvalue13]

Wasn’t meaning to correct you. Should have preface with “Indeed” or “Yes”.

There are piles of mis-information out there about this. The IRS will eventually have a guideline on which vehicles meet the criteria and for how much. Where the mineral requirement is weird is it doesn’t really seem to talk about what they mean by “40% of the materials”. Is that based on weight or value?

It said “Mined or Processed” in a free trade country. Australia has a huge chunk of the lithium mining right now. It’s processed in China.

Reverse-wise, what is “Processed”? Tesla is building a cathode material factory in Texas. Does that count or are they just counting the base process of turning ore into the raw chemicals they need?

The first $3,750 should be a slam dunk. I think until the Cybertruck is out we won’t know one way or the other.

My understanding (in dramatic terms), is that currently all the NA assemblers should be lobbying the IRS to “understand” how best to interpret the law for purposes of the IRS’s rule-making.

Not that the IRS will necessarily have a sympathetic or agile ear, but instead only to agree with you: I don’t think anyone will have any educated clue unless/until the IRS guidance is released, but I’d suspect (hope?) the IRS takes an interpretation favorable to the NA assemblers this law was “intended” to help.

Thankfully, I’ve already got my F150L - can sit and wait to see what comes of the law and the CT

 

[Crissa]

Sure, only meant to point out that the $7,500 max credit is now comprised of two separate $3,250 qualifying credits, one for source of battery minerals (what I took the prior comment to be about) and the other for battery components

Except the post you replied to had that in it already...

Is your CT's battery's materials sourced from approved locations?

-Crissa

 

[cvalue13]

Except the post you replied to had that in it already...

my comment was only as serious as the post itself

at first glance I took “materials sourced from approved locations” to be referencing only the % value of critical minerals mined or processed in the U.S. or FTA countries (or recycled in US)

I suppose a most generous read could also cover the separate qualification, of value of battery components manufactured or assembled in North America

That said, since it purported to be a flowchart of qualifying for the (full?) rebate, I said it “maybe” gets you $3,250 if only the materials are sourced but not also assembled/manufactured in the approved locations

 

[flamaest]

I thought the clause for the " source of battery minerals " was supposed to be implemented -incrementally- in the coming years to 'steer' manufactures to slowly get the minerals locally?

 

[Ogre]

Takes 7 years to ramp up a mine in the US.

Mineral requirements start getting tough almost immediately.

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