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Bolt will qualify for full $7500 tax credit in Jan and Feb

8826 Views 97 Replies 36 Participants Last post by TimSFL, 2 mo ago

mrcleop

Discussion Starter · 5 mo ago

The treasury just said that they won’t issue proposed guidance on battery sourcing until March. That means from Jan 1 until then, the Bolt qualifies for the full $7500 tax credit!

https://home.treasury.gov/news/press-releases/jy1173

Reactions: 5

41 - 60 of 98 Posts

paddypods

· #41 · 5 mo ago

I read a couple of articles on this yesterday. This one from Kiplinger was helpful to me. I mentioned in an earlier post that I think the $7,500 credit is applied at the point-of-sale starting in 2024. The article clarifies this, stating, "you will have the option [emphasis added], beginning in 2024, to take the EV tax credit as a discount at the time you purchase the vehicle. Essentially, you would be transferring the credit to the dealer, who would be able to lower the price of the vehicle by the amount of the credit. This means that you won’t have to wait until tax time to benefit from the EV tax break."

The article also has a link to the DOT website, where you can enter the VIN to see if the EV qualifies for the credit.

And I hadn't read about this before. The end of the article mentions that Sen. Warnock has proposed a bill to phase in the IRA manufacturing and sourcing requirements to give manufacturers more time, and more vehicles would qualify initially. I haven't read the text of his bill, but I think the general idea of it is the right way to go.

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ARob

· #42 · 5 mo ago

On top of being the Electrek EV of the Year, now this:

electrek.co

The Chevy Bolt is a screaming deal – at least until April 18

With a brief two- to three-month window qualifying for the full $7,500 tax credit, the 2023 Chevy Bolt might be the best value car you can buy.

electrek.co

Unique set of circumstances leading to the Bolt being perhaps the cheapest new car (ICE or EV) in the country.

Reactions: 1

Sleeve

· #43 · 5 mo ago

I'm glad a came across this thread. I'm leasing my 2022 Bolt EUV. I love the car but leasing was a huge mistake in that I'm WAY over my miles. However, I just received my "offer" for the straight repurchase due to the recall. I was going to negotiate a new deal buying the 2023 Bolt EUV but was going to do so on 12/31, to have some additional leverage with it being the end of the month. Looking at this though, I'd be screwing myself if I bought before 1/1, right? Just on the chance that these predictions work out?

mrcleop

Discussion Starter · #44 · 5 mo ago

Sleeve said:
I'm glad a came across this thread. I'm leasing my 2022 Bolt EUV. I love the car but leasing was a huge mistake in that I'm WAY over my miles. However, I just received my "offer" for the straight repurchase due to the recall. I was going to negotiate a new deal buying the 2023 Bolt EUV but was going to do so on 12/31, to have some additional leverage with it being the end of the month. Looking at this though, I'd be screwing myself if I bought before 1/1, right? Just on the chance that these predictions work out?

Even if the $7500 doesn’t happen, the Bolt was most likely going to qualify for $3750 with the new rules. So you’d at least get that much by waiting.

Reactions: 1

gren707

· #45 · 5 mo ago

Jim Fallston Md. said:
In my opinion because you can't get the credit until you file your 2023 taxes in 2024, if they solidify the battery requirements in March it will apply to all units purchased in 2023.

this is my thought process on this also

jreddington

· #46 · 5 mo ago

jreddington said:
Except it gets even more confusing than that. Anticipating a $3750 rebate in Januar,y, Tesla is currently discounting the Model 3 by $3750 for December only. So that’s $3750 off right now instead of eventual $3750 off your income taxes. And you get the discount even if your income is too high for the federal credit.

Tesla Update. The December $3750 discount has been bumped to $7500.

apple.news

Tesla (TSLA) increases discount on cars delivered this month — Electrek

Tesla (TSLA) is increasing the discount, or price adjustment, as it calls it, to $7,500 on all Model 3 and Model Y vehicles delivered this month.

apple.news

Reactions: 1

jreddington

· #47 · 5 mo ago

cwerdna said:
Indeed.

I've mentioned in another forum that the Federal tax credit changes don't help me at all. They not only screwed it for EVs/PHEVs not assembled in North America all of the sudden (on ~Aug 16, 2022), once 1/1/2023 rolls around, I can't qualify due to the income caps as I make too much $. (Not sure how leases would factor into this though. My assumption is that if one leases, the income cap would still apply and thus make me ineligible.)

You might want to look at a Tesla if you can find one at a Tesla outfit near you. New $7500 immediate discount. No income limit.

apple.news

Tesla (TSLA) increases discount on cars delivered this month — Electrek

Tesla (TSLA) is increasing the discount, or price adjustment, as it calls it, to $7,500 on all Model 3 and Model Y vehicles delivered this month.

apple.news

Reactions: 1

jreddington

· #48 · 5 mo ago

paddypods said:
I read a couple of articles on this yesterday. This one from Kiplinger was helpful to me. I mentioned in an earlier post that I think the $7,500 credit is applied at the point-of-sale starting in 2024. The article clarifies this, stating, "you will have the option [emphasis added], beginning in 2024, to take the EV tax credit as a discount at the time you purchase the vehicle. Essentially, you would be transferring the credit to the dealer, who would be able to lower the price of the vehicle by the amount of the credit. This means that you won’t have to wait until tax time to benefit from the EV tax break."

The article also has a link to the DOT website, where you can enter the VIN to see if the EV qualifies for the credit.

And I hadn't read about this before. The end of the article mentions that Sen. Warnock has proposed a bill to phase in the IRA manufacturing and sourcing requirements to give manufacturers more time, and more vehicles would qualify initially. I haven't read the text of his bill, but I think the general idea of it is the right way to go.

My guess is that in 2024 you‘ll still need to declare on your 2024 tax filing that the tax credit has been taken and that by income rules you still qualify. If not, you’ll probably have to pay back the credit with your taxes.

Reactions: 1

TonyPots

· #49 · 5 mo ago

As i understand it the money is a tax rebate in 2023 where it'll be filed in taxes in 2024. That would allow any list madeout by doe or irs in maybe March 2023 to apply to the forms we fill out in 2024. I think there is something in the bill that allows the dealer to make the rebate as part of the sale. But, no dealer is going to do that and be left holding the bag if the "list" apples in tax time in 2024.

cwerdna

· #50 · 5 mo ago (Edited)

jreddington said:
You might want to look at a Tesla if you can find one at a Tesla outfit near you. New $7500 immediate discount. No income limit.

Tesla (TSLA) increases discount on cars delivered this month — Electrek

Tesla (TSLA) is increasing the discount, or price adjustment, as it calls it, to $7,500 on all Model 3 and Model Y vehicles delivered this month.

apple.news

No thank you. I already considered Model 3 twice and passed on it each time. First time was when it was in contention w/my Bolt. I've posted about this before, but essentially, w/the Bolt tax credit situation in Jan 2019 vs. Tesla's w/the feature set, 3 was missing features I wanted (that Bolt had and my '13 Leafs had) and had stuff I didn't want but cost over $12K more to boot.

When my Bolt was going to be bought back related to the battery recall, I considered 3 again but almost nothing was done to address any of my issues and the wait was crazy (months long). I had no other car and would be down to 0 cars for months.

Now w/Elno's Twitter dumpster fire and his treatment of tech workers (cutting half the company, ending remote work at a "remote work forever" company with under 24 hours notice + hardcore ultimatum + other antics (see Twitter is Going Great!)), anything from Tesla is pretty much out of the question for me. I work in tech in the Bay Area. His treatment of his employees and now former employees is rather distressing for me.

The door is almost completely closed. I will not be a part of significantly enriching Musk, E so no cars, solar, Powerwall, etc. from him.

I also don't need nor want another car. My '22 Niro EV lease runs out at end of Jan 2025. So, I shouldn't be looking around until maybe a few months before then. And, buying out my Niro EV at end of lease is a possibility.

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Reactions: 2

greendave

· #51 · 5 mo ago

jreddington said:
You might want to look at a Tesla if you can find one at a Tesla outfit near you. New $7500 immediate discount. No income limit.

Tesla (TSLA) increases discount on cars delivered this month — Electrek

Tesla (TSLA) is increasing the discount, or price adjustment, as it calls it, to $7,500 on all Model 3 and Model Y vehicles delivered this month.

apple.news

No matter what forum/thread you go on, you can't escape Tesla. Sigh.

Besides, if you go on the Tesla site to look for 'eligible' vehicles, they start at $60k (if you live in California). Not going to save money by overpaying $15k to start with.

Reactions: 1

Rmay635703

· #52 · 5 mo ago

My question is with the income limit how do they figure anyone will thread the needle to get the full credit?

If you own a house/ have kids and deductions your income to get the credit is near or over the limit.

Pretty much the credit is now for single people without any deducmaking $70,000+ a year

Has anyone posted an updated thread that spells out the current state of the 2023 credit?

It seems like half of folks say the credit is a rebate then a week later say it’s non-refundable and dependent on income.

greendave

· #53 · 5 mo ago

Rmay635703 said:
My question is with the income limit how do they figure anyone will thread the needle to get the full credit?

If you own a house/ have kids and deductions your income to get the credit is near or over the limit.

Pretty much the credit is now for single people without any deducmaking $70,000+ a year

Not sure how you get to that conclusion. $150k single/$300k joint covers a lot of people. Hard to tell exactly, but somewhere between 80-85% of Americans should qualify.

If anything the problem with the credit is that it's too generous. Taxing a family making $100k a year to give a credit to a family making $300k a year on the purchase of an $80k Rivian or a $60k Model Y is sort of maddening.

A cap of $40k for the vehicle price (and $100k/$200k on income) would've made a lot more sense.

Reactions: 2

SpicyBolt

· #54 · 5 mo ago

greendave said:
Not sure how you get to that conclusion. $150k single/$300k joint covers a lot of people. Hard to tell exactly, but somewhere between 80-85% of Americans should qualify.

If anything the problem with the credit is that it's too generous. Taxing a family making $100k a year to give a credit to a family making $300k a year on the purchase of an $80k Rivian or a $60k Model Y is sort of maddening.

A cap of $40k for the vehicle price (and $100k/$200k on income) would've made a lot more sense.

Exactly!

I would be thrilled to have an income too high to claim the credit, and certainly wouldn't be complaining.

Reactions: 1

Rmay635703

· #55 · 5 mo ago

greendave said:
Not sure how you get to that conclusion. $150k single/$300k joint covers a lot of people. Hard to tell exactly, but somewhere between 80-85% of Americans should qualify.

If anything the problem with the credit is that it's too generous. Taxing a family making $100k a year to give a credit to a family making $300k a year on the purchase of an $80k Rivian or a $60k Model Y is sort of maddening.

A cap of $40k for the vehicle price (and $100k/$200k on income) would've made a lot more sense.

So the 200 million Americans whodon’t pay $7500 in annual tax will get the full rebate ?

Reactions: 1

paddypods

· #56 · 5 mo ago

Rmay635703 said:
So the 200 million Americans whodon’t pay $7500 in annual tax will get the full rebate ?

The Kiplinger article I linked earlier explains it this way:

For EV purchases in 2023, the credit is taken by the buyer when filing 2023 taxes, but the credit is non-refundable.

For EV purchases in 2024 and beyond, the buyer has the option of taking the credit at the point-of-sale, which would reduce the purchase price.

Beyond this, I don't have answers. Now I'm not clear about what happens when a buyer takes the credit at the point-of-sale but doesn't pay $7,500 in federal taxes. I assumed the buyer would get the full $7,500 knocked off the purchase price and just walk away. But earlier in this thread, @pooge30 posted that it's still a credit and buyer's income is still a factor, which I hadn't considered at the time. Now I wonder if the buyer would be liable to pay back any amount received over tax liability, or if the dealer needs proof of income (maybe the previous year's return) to apply the correct credit amount.

The EV credit portion of the IRA is supposed to make it easier for people with lower incomes to buy an EV. If the credit is always classified as non-refundable, then doesn't that defeat the purpose?

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landog

· #57 · 5 mo ago

I placed an order for an EV in November. Since reading this thread, and since I was passing near to the dealership on my way to pick up my son for the holidays, I thought I'd stop in and ask for an update on where I stand. When I put my deposit down, I was 4th in line for an EV, and they had 8 or 9 EUV orders.

"You're still number 4." I asked if it would help if I switched to an EUV. Turns out, they had one on the lot that someone bailed on.

I take delivery Jan. 2nd!

Thanks, mrcleop - for starting this thread! I hope the full rebate is real...

TimSFL

· #58 · 5 mo ago

p7wang said:
GM told them they would not be able to take the tax credit. When I picked up my replacement vehic

Jim Fallston Md. said:
if they solidify the battery requirements in March it will apply to all units purchased in 2023.

So based on this thread any possibility of getting a Tax credit for Nov 22 Bolts picked up this June or so is still a pipe dream.

Reactions: 1

Rmay635703

· #59 · 5 mo ago

paddypods said:
The Kiplinger article I linked earlier explains it this way:

For EV purchases in 2023, the credit is taken by the buyer when filing 2023 taxes, but the credit is non-refundable.

For EV purchases in 2024 and beyond, the buyer has the option of taking the credit at the point-of-sale, which would reduce the purchase price.

Beyond this, I don't have answers. Now I'm not clear about what happens when a buyer takes the credit at the point-of-sale but doesn't pay $7,500 in federal taxes. I assumed the buyer would get the full $7,500 knocked off the purchase price and just walk away. But earlier in this thread, @pooge30 posted that it's still a credit and buyer's income is still a factor, which I hadn't considered at the time. Now I wonder if the buyer would be liable to pay back any amount received over tax liability, or if the dealer needs proof of income (maybe the previous year's return) to apply the correct credit amount.

The EV credit portion of the IRA is supposed to make it easier for people with lower incomes to buy an EV. If the credit is always classified as non-refundable, then doesn't that defeat the purpose?

There are cases where the IRS goes after someone for 30 years
who was rather “poor” to start during the infraction then becomes penniless for whatever reason and possibly disabled or imprisoned.

This sounds like a good strawman to increase incarceration and unpayable fines.
Also can drive 10’s or 100’s of thousands of dollars of legal expenses in each case.

If that is how it’s setup it’s beyond stupid possibly beyond incompetent leading to a criminal setup

brand46

· #60 · 5 mo ago

I've been waiting to buy a Bolt when the tax credit comes available in January, but now I'm finding out the wait times and inventory could push that purchase back a couple of months. Wondering if I've missed the window for maximum eligibility?

I've called every dealer in 100 miles and the story is the same--nothing available so order now and wait 3-4 months or hope someone backs out with a similarly spec'd Bolt (EUV Premier + Super Cruise + Sunroof).

Will ordering now improve my chances of timing this right? Is it better to order from the dealer or on Chevrolet.com?

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