Why no $7500 credit for regular production AWD? Read the small print.

[brandonhd]

Chinese sourcing for the current 4860 cells disqualifies Tesla from offering the $7500 tax credit.

If that’s the case it still would qualify for half the tax credit. $3,750

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[Jhodgesatmb]

Chinese sourcing for the current 4860 cells disqualifies Tesla from offering the $7500 tax credit.

The cells and packs are made in Texas, and you are saying that all of the cell materials (graphite, silicon, nickel, lithium, cobalt, etc) are coming from non free trade nations? Wouldn’t that be the same for every Tesla (and most every other manufacturer)?

 

[Jhodgesatmb]

House is something need to live, a $100k truck is not something you need. They have options for less than $5k and if you get a loan because you can put your $100k in a better interest gaining account, then you don’t need a loan to get the truck, you just chose a loan.

I already have my truck and paid for it, but I think that the CT should qualify for the rebate because it shows up for the full rebate as a commercial vehicle. Maybe just a glitch in the system?

 

[HaulingAss]

It’s coming grasshoppers. Your patience will be rewarded with a $7500 discount of MSRP.

It could come. We don't know. I wouldn't give people false hope. These complicated government rules create excessive uncertainty and can muck up the best laid plans.

You are taking a chance whether you buy one with white interior and Cyberwheels assuming it will never be eligible, or if you wait for it to become eligible, or withold desired options in case it is.

 

[HaulingAss]

I already have my truck and paid for it, but I think that the CT should qualify for the rebate because it shows up for the full rebate as a commercial vehicle. Maybe just a glitch in the system?

The business tax credit has different rules that are not strict on sourcing requirements.

 

[mongo]

If that’s the case it still would qualify for half the tax credit. $3,750

The cells and packs are made in Texas, and you are saying that all of the cell materials (graphite, silicon, nickel, lithium, cobalt, etc) are coming from non free trade nations? Wouldn’t that be the same for every Tesla (and most every other manufacturer)?

As of Jan 1, 2024 Chinese battey components disqualify the vehicle from any 30D credit. Chinese minerals disqualify the vehicle next year.
If not disqualified, the two $3,750 credits are based on percentage sourcing of components and minerals.

7) EXCLUDED ENTITIES.—For purposes of this section, the term ‘new clean vehicle’ shall not include—
(A) any vehicle placed in service after December 31, 2024, with respect to which any of the applicable critical minerals contained in the battery of such vehicle (as described in subsection (e)(1)(A)) were extracted, processed, or recycled by a foreign entity of concern (as defined in section 40207(a)(5) of the Infrastructure Investment and Jobs Act (42 U.S.C. 18741(a)(5))), or
(B) any vehicle placed in service after December 31, 2023, with respect to which any of the components contained in the battery of such vehicle (as described in subsection (e)(2)(A)) were manufactured or assembled by a foreign entity of concern (as so defined).’’.

 

[Guylouis]

dont worry its coming. This was listed by epa a bit prematurely last year before Tesla decided to make a Foundation Series.

 

[mongo]

dont worry its coming. This was listed by epa a bit prematurely last year before Tesla decided to make a Foundation Series.

Tesla gives the IRS the data for that list.
The Cybertruck qualified if purchased in 2023 (and under 80k and buyer income...) because the Chinese component disqualification clause was not yet in effect.

 

[brandonhd]

Tesla gives the IRS the data for that list.
The Cybertruck qualified if purchased in 2023 (and under 80k and buyer income...) because the Chinese component disqualification clause was not yet in effect.

Even with Chinese components it still would qualify for half the tax credit right?

 

[mongo]

Even with Chinese components it still would qualify for half the tax credit right?

No, Chinese components in 2024 onward disqualify the vehicle from any credit.
Chinese minerals in 2025 onward disqualify the vehicle from any credit.

Half credit is if non-partner mineral or component content is not high enough (and other is).

7) EXCLUDED ENTITIES.—For purposes of this section, the term ‘new clean vehicle’ shall not include—
(A) any vehicle placed in service after December 31, 2024, with respect to which any of the applicable critical minerals contained in the battery of such vehicle (as described in subsection (e)(1)(A)) were extracted, processed, or recycled by a foreign entity of concern (as defined in section 40207(a)(5) of the Infrastructure Investment and Jobs Act (42 U.S.C. 18741(a)(5))), or
(B) any vehicle placed in service after December 31, 2023, with respect to which any of the components contained in the battery of such vehicle (as described in subsection (e)(2)(A)) were manufactured or assembled by a foreign entity of concern (as so defined).’’.

 

[Jhodgesatmb]

As of Jan 1, 2024 Chinese battey components disqualify the vehicle from any 30D credit. Chinese minerals disqualify the vehicle next year.
If not disqualified, the two $3,750 credits are based on percentage sourcing of components and minerals.

7) EXCLUDED ENTITIES.—For purposes of this section, the term ‘new clean vehicle’ shall not include—
(A) any vehicle placed in service after December 31, 2024, with respect to which any of the applicable critical minerals contained in the battery of such vehicle (as described in subsection (e)(1)(A)) were extracted, processed, or recycled by a foreign entity of concern (as defined in section 40207(a)(5) of the Infrastructure Investment and Jobs Act (42 U.S.C. 18741(a)(5))), or
(B) any vehicle placed in service after December 31, 2023, with respect to which any of the components contained in the battery of such vehicle (as described in subsection (e)(2)(A)) were manufactured or assembled by a foreign entity of concern (as so defined).’’.

I wasn’t talking about 2025 and beyond but right now when the non-FS trucks are currently being made. Also, the CT batteries are as much or more sourced as any Tesla vehicle batteries from free-trade countries. So neither 7a nor 7b seem to apply.

 

[mongo]

I wasn’t talking about 2025 and beyond but right now when the non-FS trucks are currently being made. Also, the CT batteries are as much or more sourced as any Tesla vehicle batteries from free-trade countries. So neither 7a nor 7b seem to apply.

Clause B:
(B) any vehicle placed in service after December 31, 2023, with respect to which any of the components contained in the battery of such vehicle (as described in subsection (e)(2)(A)) were manufactured or assembled by a foreign entity of concern (as so defined).’’.

Tesla uses imported Chinese cathodes to make the cells. Thus, the vehicle is ineligible.

 

[REM]

I spoke with Tesla sales yesterday, they said they are waiting on the IRS to designate the CT as eligible for the $7,500 Fed tax credit. He said the same thing happened with the Model3, took a few weeks for the IRS to catch-up.

thank God! I was wondering what was taking them so long to convert my order from Foundation to regular when I have already seen a few people get the "order ready" email lol

 

[Sandybayes1]

Understandable, it's a big chunk of money for filling the transportation role.

Why don't you do what I'm going to do ? I'm planning on either renting it out or joining Uber or Lyft fleet to pay it off.

 

[Thunderstrike44]

I just don't get something here, Ford Lightning is only 29% use parts and it get the $7500 Credit, The Cycbertruck is the Lowest Tesla % at 69% and the Rest are 70%+ the only other Truck sold in USA that has more % is the Honda Ridgeline and that's a ICE Engine Truck. Somebody got it out for Tesla I telling you not to support a company which has almost all of it parts source in North America is ridiculous. We are all choking of the Final Price Tag of the CT and then to have your own government stuck it to you further is a double insult. I was counting on that credit to ease the pain a little, and help support the EV World change that I have been waiting for since the 70's BTW. So Kudos to ELon for push the industry forward, to bad of blind government does not see that.

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