Taycan tax credit question
11-30-2021, 01:41 PM
#33
Just to clarify
As of today the Taycan is eligible for the $7500 tax credit regardless of AGI
https://www.fueleconomy.gov/feg/taxevb.shtml
The reconciliation bill will eliminate the Taycan due to it's price exceeding $55K and impose a 250K AGI limitation for a single person and a 500K for a couple filing a joint return.
https://www.reuters.com/business/aut...vs-2021-11-03/
As of today the Taycan is eligible for the $7500 tax credit regardless of AGI
https://www.fueleconomy.gov/feg/taxevb.shtml
The reconciliation bill will eliminate the Taycan due to it's price exceeding $55K and impose a 250K AGI limitation for a single person and a 500K for a couple filing a joint return.
https://www.reuters.com/business/aut...vs-2021-11-03/
Thank you.
11-30-2021, 02:01 PM
#34
Burning Brakes
The Taycan Base that I ordered in July will end up being a 2022 Model Year and is scheduled to be delivered by the first week of December, 2021. So that sounded like good news to me regarding the $7500 Federal Tax Credit. But I sent my due diligence confirmation anyway to my tax advisor and their initial response was to send me links which show that all Taycan models EXCEPT THE BASE are listed as qualifying for the tax credit and that 2021 IS THE LATEST MODEL YEAR OF PORSCHES which is listed as qualifying, even though there are 2022 models listed for some other manufacturers. Does anyone know if these are real distinctions or just loose wording of the linked documents?
Thank you.
Thank you.
11-30-2021, 02:08 PM
#35
That does not sound right. It doesn’t matter what model year. What matters is that it qualifies as an electric car (or even for a plug-in hybrid, if it has the minimum size (in kilowatts) for the battery). The IRS standard is when the car goes “in service,” which is interpreted as when the car is registered and able to be used by you (i.e., the day you take delivery and you/dealer send the paperwork to DMV to register the car as of that day)—as long as that happens by December 31, 2021, you can claim the tax credit when you do your taxes for calendar year 2021. My guess is that your tax advisor looked up the website fueleconomy.gov but that’s just a guide, not an official last word on which car qualifies or does not qualify. In fact, I wrote to them once asking why one of the Panamera E-Hybrids was not listed and they responded that it’s because Porsche had not sent the information for them to be able to determine if it qualifies but they emphasized that their website is only informational.
11-30-2021, 02:09 PM
#36
That does not sound right. It doesn’t matter what model year. What matters is that it qualifies as an electric car (or even for a plug-in hybrid, if it has the minimum size (in kilowatts) for the battery). The IRS standard is when the car goes “in service,” which is interpreted as when the car is registered and able to be used by you (i.e., the day you take delivery and you/dealer send the paperwork to DMV to register the car as of that day)—as long as that happens by December 31, 2021, you can claim the tax credit when you do your taxes for calendar year 2021. My guess is that your tax advisor looked up the website fueleconomy.gov but that’s just a guide, not an official last word on which car qualifies or does not qualify. In fact, I wrote to them once asking why one of the Panamera E-Hybrids was not listed and they responded that it’s because Porsche had not sent the information for them to be able to determine if it qualifies but they emphasized that their website is only informational.
https://www.irs.gov/businesses/irc-3...vehicle-credit
I’ve asked them for clarification, as those seem like “differences” without real “distinctions”. I’ve also asked the dealer. Still waiting for responses. But when I look around for other information I find the same thing.
Last edited by Cajun Martyni; 11-30-2021 at 02:11 PM.
11-30-2021, 02:22 PM
#37
Burning Brakes
@Visceral, yea if you take delivery in March 2022, even of a still “new 2021” Taycan, you won’t get the tax credit for 2021 tax year. You would get to claim it for 2022 tax year IF somehow the democrats don’t change the entire EV tax credit scheme, which by all means (and unfortunately) seems to be inevitable and effective Jan. 1, 2022. Current version of that bill caps EV sedans at $55k so no more tax credits for Taycans.
@Cajun Martyni, the link to the IRS website that they sent you supports what I explained. Porsche just hasn’t sent the info and gotten “acknowledgment” yet. Interestingly, the 2022 Cayenne e-hybrid is listed there so Porsche just hasn’t gotten around to it or it’s in the pipeline. Regardless, I would comfortably claim the tax credit on my taxes because the car absolutely qualifies under the letter of the law and the law is not subject to what’s listed on a website that states it was last updated Nov. 4 lol
@Cajun Martyni, the link to the IRS website that they sent you supports what I explained. Porsche just hasn’t sent the info and gotten “acknowledgment” yet. Interestingly, the 2022 Cayenne e-hybrid is listed there so Porsche just hasn’t gotten around to it or it’s in the pipeline. Regardless, I would comfortably claim the tax credit on my taxes because the car absolutely qualifies under the letter of the law and the law is not subject to what’s listed on a website that states it was last updated Nov. 4 lol
11-30-2021, 03:51 PM
#38
RL Community Team
Rennlist Member
Rennlist Member
The Taycan Base that I ordered in July will end up being a 2022 Model Year and is scheduled to be delivered by the first week of December, 2021. So that sounded like good news to me regarding the $7500 Federal Tax Credit. But I sent my due diligence confirmation anyway to my tax advisor and their initial response was to send me links which show that all Taycan models EXCEPT THE BASE are listed as qualifying for the tax credit and that 2021 IS THE LATEST MODEL YEAR OF PORSCHES which is listed as qualifying, even though there are 2022 models listed for some other manufacturers. Does anyone know if these are real distinctions or just loose wording of the linked documents?
Thank you.
Thank you.
12-01-2021, 03:41 PM
#39
The Taycan Base that I ordered in July will end up being a 2022 Model Year and is scheduled to be delivered by the first week of December, 2021. So that sounded like good news to me regarding the $7500 Federal Tax Credit. But I sent my due diligence confirmation anyway to my tax advisor and their initial response was to send me links which show that all Taycan models EXCEPT THE BASE are listed as qualifying for the tax credit and that 2021 IS THE LATEST MODEL YEAR OF PORSCHES which is listed as qualifying, even though there are 2022 models listed for some other manufacturers. Does anyone know if these are real distinctions or just loose wording of the linked documents?
Thank you.
Thank you.
"Internal Revenue Code Section 30D provides a credit for Qualified Plug-in Electric Drive Motor Vehicles including passenger vehicles and light trucks. For vehicles acquired after 12/31/2009, the credit is equal to $2,500 plus, for a vehicle which draws propulsion energy from a battery with at least 5 kilowatt hours of capacity, $417, plus an additional $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours. The total amount of the credit allowed for a vehicle is limited to $7,500."
The only thing that would override that is if the manufacturer has sold more that 200K units.
"The qualified plug-in electric drive motor vehicle credit phases out for a manufacturer’s vehicles over the one-year period beginning with the second calendar quarter after the calendar quarter in which at least 200,000 qualifying vehicles manufactured by that manufacturer have been sold for use in the United States (determined on a cumulative basis for sales after December 31, 2009) (“phase-out period”). Qualifying vehicles manufactured by that manufacturer are eligible for 50 percent of the credit if acquired in the first two quarters of the phase-out period and 25 percent of the credit if acquired in the third or fourth quarter of the phase-out period. Vehicles manufactured by that manufacturer are not eligible for a credit if acquired after the phase-out period."
12-01-2021, 04:46 PM
#40
I think the key is the following wording:
"Internal Revenue Code Section 30D provides a credit for Qualified Plug-in Electric Drive Motor Vehicles including passenger vehicles and light trucks. For vehicles acquired after 12/31/2009, the credit is equal to $2,500 plus, for a vehicle which draws propulsion energy from a battery with at least 5 kilowatt hours of capacity, $417, plus an additional $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours. The total amount of the credit allowed for a vehicle is limited to $7,500."
The only thing that would override that is if the manufacturer has sold more that 200K units.
"The qualified plug-in electric drive motor vehicle credit phases out for a manufacturer’s vehicles over the one-year period beginning with the second calendar quarter after the calendar quarter in which at least 200,000 qualifying vehicles manufactured by that manufacturer have been sold for use in the United States (determined on a cumulative basis for sales after December 31, 2009) (“phase-out period”). Qualifying vehicles manufactured by that manufacturer are eligible for 50 percent of the credit if acquired in the first two quarters of the phase-out period and 25 percent of the credit if acquired in the third or fourth quarter of the phase-out period. Vehicles manufactured by that manufacturer are not eligible for a credit if acquired after the phase-out period."
"Internal Revenue Code Section 30D provides a credit for Qualified Plug-in Electric Drive Motor Vehicles including passenger vehicles and light trucks. For vehicles acquired after 12/31/2009, the credit is equal to $2,500 plus, for a vehicle which draws propulsion energy from a battery with at least 5 kilowatt hours of capacity, $417, plus an additional $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours. The total amount of the credit allowed for a vehicle is limited to $7,500."
The only thing that would override that is if the manufacturer has sold more that 200K units.
"The qualified plug-in electric drive motor vehicle credit phases out for a manufacturer’s vehicles over the one-year period beginning with the second calendar quarter after the calendar quarter in which at least 200,000 qualifying vehicles manufactured by that manufacturer have been sold for use in the United States (determined on a cumulative basis for sales after December 31, 2009) (“phase-out period”). Qualifying vehicles manufactured by that manufacturer are eligible for 50 percent of the credit if acquired in the first two quarters of the phase-out period and 25 percent of the credit if acquired in the third or fourth quarter of the phase-out period. Vehicles manufactured by that manufacturer are not eligible for a credit if acquired after the phase-out period."
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mdrobc1213 (12-03-2021)
12-02-2021, 01:10 PM
#41
Not Taycan related, but tax credit related. I got lucky and our 22 Cayenne E-hybrid Coupe came in last month, so we should be excluded from potential change in legislation regarding EV tax credits for FY22. Has anyone had experience with claiming the tax credit in the past? Will I need to provide any documentation and mail in a hardcopy of my tax return? Or will I be able to just e-file? thanks!