Tesla is telling me that their models qualify for tax credits up to $7500 for tax year 2023. I live in Texas.
I want to make sure I will get the tax credit if I buy a Tesla model either 3 or Y. Tesla EV was not in the drop-down in the 2021 and 2022 tax returns. Will I get the full $7500 tax credit if the gross income is around $127k filling as married and line 22 is over $10K? What about if the vehicle is not delivered until 2024 and I pay the amount? Will I be able to use EV tax credit in 2024 tax returns? What about if there is no tax credit for Tesla models in 2024?
this is from a Forbes article poste June 2023
The complete Tesla Model 3 and Y lineup now qualifies for a full $7,500 federal tax credit for clean cars. On Tuesday, the U.S. EPA officially added all Tesla Model 3 and Model Y variants to its list of tax-credit eligible vehicles.
Previously, only certain versions of the popular EVs qualified for the full subsidy, while others received partial credit. Now offered: the Model 3 Long Range AWD and Standard Range Rear-Wheel Drive for the $7,500 credit instead of the $3,750 partial rate. Tesla had marked the change for all six of the models on its website Friday ahead of the EPA update.
The full credit marks down the entry level RWD Model 3 from $40,240 (plus a $1,390 destination fee) down to $32,740. The car has a 272-mile range. That puts it in line with more budget-friendly gas-powered midsize cars, like the Honda Accord.
In 2024, the IRS plans to expand access to the tax benefit by allowing consumers to choose between claiming a nonrefundable credit or transferring the credit to the dealer to lower the price of the car by the credit amount at the point of sale.
This new proposal would make it easier for all eligible consumers — not just those with a high tax liability — to take advantage of credit. For those who transfer the credit, it would also do away with having to wait until the following year to claim the benefit on their tax returns.
Prior to the passage of the Inflation Reduction Act (IRA) in August, 2022, each manufacturer had a limit on the number of EVs they could sell that could be eligible for the credit. Tesla exhausted their limit prior to 2022. That is why they are not on the 2022 list.
But under the IRA, there is no longer a fleet limit. So Tesla's are now on the eligible list.
You are correct that Line 22 of Form 1040 has to be at least $7500 (prior to the credit being applied) to get the maximum credit.
You may want to read through these IRS FAQs to get yourself comfortable that you will indeed qualify for the credit.