Tesla $7,500 Tax Credit: Securing It After September 30th

Tesla $7,500 Tax Credit: Securing It After September 30th

Hey everyone, DennisCW here! If you're in the market for a Tesla Model 3, Model Y, or any qualifying vehicle, the $7,500 federal tax credit is likely a big factor in your decision. With September 30th approaching, there's a lot of buzz about how this credit might work moving forward. In this blog post, I'll break down my thoughts based on recent updates from Tesla and the IRS, plus some other exciting Tesla news. Let's dive in!

Understanding the $7,500 Federal Tax Credit

Tesla recently updated their website with new verbiage around the tax credit, emphasizing that taking delivery by September 30th is the "best way to secure the credit at point of sale." Words like "secure" are popping up everywhere, hinting at potential changes post-September.

The IRS has clarified that if you have a deposit and a binding contract in place before the deadline, you should still qualify for the full $7,500 credit—provided you meet the income limits. However, the key shift could be how you receive it. Tesla and other automakers aren't keen on fronting the credit at the point of sale if deliveries slip into October or later. So, what might happen?

Point of Sale vs. Tax Filing: The Two Paths

According to the IRS, there are two main ways to claim the credit:

1. Point of Sale Discount: This is the ideal scenario where the $7,500 is deducted directly from the vehicle's price at delivery. Tesla handles the reimbursement from the IRS and passes the savings to you.

2. Filing with Your Taxes: If delivery happens after September 30th but you have a binding contract, you'll claim the credit on your 2025 tax return (filed in 2026). This means paying the full price upfront and getting the $7,500 as a refund later.

This second option isn't bad if you're within the income parameters (not too high or too low to qualify for the full amount). But it could be a deal-breaker for some. Why? Financing a vehicle that's $7,500 more expensive adds to your monthly payments—potentially $100–$150 extra per month. Plus, waiting six to seven months for that refund might not appeal to everyone.

Should You Order Now?

If you're eyeing a Tesla, don't wait! Many delivery estimates still show September 2024 arrivals, especially if you're near factories in California or Texas. I've checked with folks who have pending orders, and none are slipping into October yet. That said, flexibility on colors or options (like a black Model Y with white interior—my personal fave) could help secure an earlier delivery.

Pro tip: When ordering, use a Tesla referral code (like mine in the description below) to get three months of Full Self-Driving for free. If you're already opting for FSD, it supports the channel—thanks to everyone who's used it!

Potential Deal-Breakers and Speculation

This is all speculation based on current info, but if deliveries push past September, expect the credit to shift to tax filing. Tesla hasn't released official word yet, so things could change. Is this a deal-breaker for you? Would you skip buying if you can't get the point-of-sale discount? Drop your thoughts in the comments—I'd love to hear!

Other Tesla News: Model Y Long Range Sold Out

In other updates, the Model Y Long Range is now sold out for October deliveries, with estimates pushing into November 2024. This beast of a vehicle offers incredible range and space. Imagine folding the seats flat for a built-in bed—perfect for camping! There's a growing community of Tesla owners who love sleeping in their cars for adventures. If it hits the US market, I think it'll be a hit.

Save Big on Your Tesla Purchase

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Final Thoughts

The $7,500 tax credit could still be yours after September 30th, but the method might change. Order soon to maximize your chances of a point-of-sale discount. What do you think—deal-breaker or no biggie? Let me know below, and stay tuned for more Tesla updates!

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Disclosure: This post contains affiliate links and sponsorships.