Potential future EV credit changes [NO POLITICS]

[corradoborg]

it's not a PHEV?

That's it. There is no rebate for non-plugin hybrids.

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[Blainestang]

That's it. There is no rebate for non-plugin hybrids.

Right. It's a hybrid in the sense that it has an electric motor, but ALL of the power ultimately comes from gas... so no credit.

 

[Pilot2022]

In the current draft, is it just one vehicle per taxpayer per year that qualifies for the credit/rebate or are there no limits?

 

[sotek2345]

Looks like some bad news for the extended EV tax credit today

https://www.axios.com/scoop-biden-bombs-manchin-b2b4acbd-24d0-40a3-ba6f-c0509e0e0224.html

 

[BennyTheBeaver]

Looks like some bad news for the extended EV tax credit today

https://www.axios.com/scoop-biden-bombs-manchin-b2b4acbd-24d0-40a3-ba6f-c0509e0e0224.html

Potential bad news. They haven't discussed what stays and what gets cut...

 

[bboy_72]

Nice side by side comparison of House and Senate proposals:
https://www.greencarreports.com/news/1133669_ev-tax-credit-boost-how-the-versions-compare

 

[RidetheLightning]

The language about MSRP caps in the two versions of the proposals just doesn’t make sense to me. If your goal is to not give the incentive to people that don’t need it, shouldn’t you be focusing on the annual income rather than the MSRP of the truck? Let’s say you had a business where you needed a truck and wanted it to be electric but wanted it to double as a primary or secondary family vehicle without buying another vehicle? You might want a higher end trim of that truck that is nicer for family use.

It would be kind of like saying ”here’s a tax incentive for toast, but it gets phased out if you add avocado to it” or “here’s a tax incentive for buying a new iPhone, but if you want the high end one with the bigger screen it’s phased out for that one” without much thought to the person’s income. It would seem if you have lower income and a higher cost for the goods you “need” you would need MORE assistance, not less, and if the goal is to get more EVs on the road the lower income person might just say “screw EVs and that guy who makes $399k and gets a tax credit, I can get an ICE F-150 with everything I want on it for a cheaper price.”

 

[bboy_72]

The language about MSRP caps in the two versions of the proposals just doesn’t make sense to me. If your goal is to not give the incentive to people that don’t need it, shouldn’t you be focusing on the annual income rather than the MSRP of the truck? Let’s say you had a business where you needed a truck and wanted it to be electric but wanted it to double as a primary or secondary family vehicle without buying another vehicle? You might want a higher end trim of that truck that is nicer for family use.

It would be kind of like saying ”here’s a tax incentive for toast, but it gets phased out if you add avocado to it” or “here’s a tax incentive for buying a new iPhone, but if you want the high end one with the bigger screen it’s phased out for that one” without much thought to the person’s income. It would seem if you have lower income and a higher cost for the goods you “need” you would need MORE assistance, not less, and if the goal is to get more EVs on the road the lower income person might just say “screw EVs and that guy who makes $399k and gets a tax credit, I can get an ICE F-150 with everything I want on it for a cheaper price.”

Agreed. Some of the income caps and purchase price limits may be more about optics rather than actual policy.

 

[sotek2345]

The language about MSRP caps in the two versions of the proposals just doesn’t make sense to me. If your goal is to not give the incentive to people that don’t need it, shouldn’t you be focusing on the annual income rather than the MSRP of the truck? Let’s say you had a business where you needed a truck and wanted it to be electric but wanted it to double as a primary or secondary family vehicle without buying another vehicle? You might want a higher end trim of that truck that is nicer for family use.

It would be kind of like saying ”here’s a tax incentive for toast, but it gets phased out if you add avocado to it” or “here’s a tax incentive for buying a new iPhone, but if you want the high end one with the bigger screen it’s phased out for that one” without much thought to the person’s income. It would seem if you have lower income and a higher cost for the goods you “need” you would need MORE assistance, not less, and if the goal is to get more EVs on the road the lower income person might just say “screw EVs and that guy who makes $399k and gets a tax credit, I can get an ICE F-150 with everything I want on it for a cheaper price.”

The only policy benefit I could see would be to push manufacturers to lower prices (either by better designs or by reducing profits) to stay under the cap. Not sure how effective it will be in real life though.

 

[RidetheLightning]

The only policy benefit I could see would be to push manufacturers to lower prices (either by better designs or by reducing profits) to stay under the cap. Not sure how effective it will be in real life though.

If any caps are implemented I’d love to see Ford make the base MSRP of their highest end model (let’s say it’s the Lariat) just under the cap and make everything above that an option off that base.

 

[pstansel]

Agreed. Some of the income caps and purchase price limits may be more about optics rather than actual policy.

In CT the caps on purchase price actually eliminate almost all EVs from getting the rebate. And yet the board in charge of it claims it's consumers fault fopr not taking advantage of it. Uh huh... sure.

 

[vandy1981]

In the current draft, is it just one vehicle per taxpayer per year that qualifies for the credit/rebate or are there no limits?

I think you can claim as many credits as you want. The tax form has multiple columns and also has instructions for adding a second sheet.

You will need to have enough tax liability to cover the credits, though.

Would confirm with your tax professional and not take advice from a rando on the internet.

Edit: didn't realize we were talking about the draft reconciliation bill. what I wrote applies to the current credit.

 

[Nick Gerteis]

Looks like a $100K income cap is being discussed. Works for me.

 

[Pioneer74]

If they do a 100k cap, I'll buy a Powerboost just out of spite.

 

[sotek2345]

Looks like a $100K income cap is being discussed. Works for me.

I am ok with it, but I hope they take a graded approach. Wife and I combined make just over the cutoff and I would hate to have it drop to 0 over a few hundred dollars.

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