Individual Income Tax Loopholes

Tesla Buyers Tax Loophole 

Tesla along with being the world's first hybrid sports car has created an even greater incentive for car buyers to choose Tesla. Now purchasers of the Tesla Model X for a whopping $100,000.00 can purchase the Model X and receive a $25,000.00 federal tax deduction. Model X buyers will also be eligible for the $7,500.00 hybrid car purchaser tax credit and any additional state tax credits or deductions that may exist. These significant tax brakes have received significant criticism as the average income earner in the US would not be able to afford such a car to receive such a large tax break. Tesla states that the Model X will not qualify for the "hummer tax loophole" which provides credits and deductions for hybrid cars. The tax code section was intended to apply to small business owner purchases that would help infuse small business by providing tax credits for heavy equipment that the business might need. The tax was intended to be progressive in nature but if applied to expensive hybrid cars the effect could in fact be regressive. Tesla its subsidiaries have faced major scrutiny lately for the significant tax benefits received by the company from the government. Tesla has received over $4.9 billion dollars in federal government support with additional millions of dollars from the state of California. These numbers do not include the tax deduction that purchasers of Tesla's will take. Lawmakers fear that applying this tax deduction to essentially a luxury car is not consistent with the purpose of the law. Read more about the tax incentives of buying a Tesla at http://www.latimes.com/business/autos/la-fi-hy-tesla-tax-break-20151013-story.html