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$7000 Tax Credit in 2021 - retroactive?

benh57

Member
Dec 31, 2013
91
82
Westchester, CA
If they can pass a $1.9 trillion COVID package, this should be a piece of cake.

We shall see soon, hopefully.
The COVID package is being passed using 'reconciliation', which can only be used once per year, due to silly senate rules.

Without use of reconciliation, the Rs can filibuster anything.

Of course, its also possible the filibuster itself will go away this year.

But, Rs also like low taxes and stuff. So it is possible they may support EV credits. We'll see.
 

Brandon#

Member
Aug 2, 2020
88
64
Austin, TX
Not sure who this ev credit would benefit with the proposed income cap. I can’t imagine buying a car that costs equivalent to 1 years’ income.

“There’s an income-based phaseout of the credit that starts at adjusted gross incomes of $30,000 and ends at $40,000 ($60,000 and $70,000, respectively, for married couples filing jointly).”
 

EVDRVN

Active Member
May 12, 2018
1,460
1,872
North Bay Area
Not sure who this ev credit would benefit with the proposed income cap. I can’t imagine buying a car that costs equivalent to 1 years’ income.

“There’s an income-based phaseout of the credit that starts at adjusted gross incomes of $30,000 and ends at $40,000 ($60,000 and $70,000, respectively, for married couples filing jointly).”

Wow really, that's not very useful.
 

EVDRVN

Active Member
May 12, 2018
1,460
1,872
North Bay Area
If it happens at all, it’s not going to be in the next 3 months. If you’re willing to wait you should just cancel, eat the $100, and wait to reorder if / when more information is available.

Why would anyone cancel and eat the $100 when you can keep your $100 and the reservation and just put it on hold?
 

ArizonaJon

Member
May 29, 2020
87
35
Tucson, AZ
Not sure who this ev credit would benefit with the proposed income cap. I can’t imagine buying a car that costs equivalent to 1 years’ income.

“There’s an income-based phaseout of the credit that starts at adjusted gross incomes of $30,000 and ends at $40,000 ($60,000 and $70,000, respectively, for married couples filing jointly).”
Will you please post a link to your source on the income limit, etc. I have been looking for a draft of the Green Bill.
 

acacia

Member
Oct 16, 2020
78
72
Scottsdale, AZ
Don't need a tax credit, don't want a tax credit, and wish the government would not borrow money to give them away.

Tim
Yeah, I kind of feel the same way. I am fortunate, and I've worked hard to be this fortunate. I also have 4 kids educations I have to pay for, but then again I paid my own way for my own. I go back and forth on this. I'd love to get the free money, but I also recognize I don't need the free money. I guess that's why I wouldn't mind tax hikes at the top couple income brackets. We didn't need more tax breaks, and the deficit just keeps going up.
 
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Snow Drift

[Off-Road Assist] Activated
Feb 10, 2016
1,974
1,499
Long Island
Not sure who this ev credit would benefit with the proposed income cap. I can’t imagine buying a car that costs equivalent to 1 years’ income.

“There’s an income-based phaseout of the credit that starts at adjusted gross incomes of $30,000 and ends at $40,000 ($60,000 and $70,000, respectively, for married couples filing jointly).”

EDIT: The AGI phaseout is for USED EV credit.

https://mikethompson.house.gov/sites/mikethompson.house.gov/files/GREEN Act 2021 Bill Text.pdf

‘SEC. 36B. PREVIOUSLY-OWNED QUALIFIED PLUG-IN ELEC- TRIC DRIVE MOTOR VEHICLES.
‘‘(2) ADJUSTED GROSS INCOME.—The amount which would (but for this paragraph) be allowed as a credit under subsection (a) shall be reduced (but not below zero) by $250 for each $1,000 (or fraction thereof) by which the taxpayer’s adjusted gross in- come exceeds $30,000 (twice such amount in the case of a joint return).

Yeah, I kind of feel the same way. I am fortunate, and I've worked hard to be this fortunate. I also have 4 kids educations I have to pay for, but then again I paid my own way for my own. I go back and forth on this. I'd love to get the free money, but I also recognize I don't need the free money. I guess that's why I wouldn't mind tax hikes at the top couple income brackets. We didn't need more tax breaks, and the deficit just keeps going up.
I hear you, but the credit helps people who might want an EV but the price is slightly outside of their affordability.

You don't have to apply for the credit, nor do you have to qualify for the credit to buy an EV. Plus, it is not free money, it is a credit, so you already paid the gov't taxes and this is a reduction. Do you take your children as dependents? Child Credit? Do you itemize your taxes and take deductions? All of that is reducing your taxable liability and provides you with a refund, or reduces what you owe. Which is the gov't returning your money and I guess, in your way of thinking, is free money. Or do you pay the full amount, no pre-tax 401k, etc. and don't try to reduce your taxes?
 
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EVDRVN

Active Member
May 12, 2018
1,460
1,872
North Bay Area
EDIT: The AGI phaseout is for USED EV credit.

https://mikethompson.house.gov/sites/mikethompson.house.gov/files/GREEN Act 2021 Bill Text.pdf

‘SEC. 36B. PREVIOUSLY-OWNED QUALIFIED PLUG-IN ELEC- TRIC DRIVE MOTOR VEHICLES.
‘‘(2) ADJUSTED GROSS INCOME.—The amount which would (but for this paragraph) be allowed as a credit under subsection (a) shall be reduced (but not below zero) by $250 for each $1,000 (or fraction thereof) by which the taxpayer’s adjusted gross in- come exceeds $30,000 (twice such amount in the case of a joint return).


I hear you, but the credit helps people who might want an EV but the price is slightly outside of their affordability.

You don't have to apply for the credit, nor do you have to qualify for the credit to buy an EV. Plus, it is not free money, it is a credit, so you already paid the gov't taxes and this is a reduction. Do you take your children as dependents? Child Credit? Do you itemize your taxes and take deductions? All of that is reducing your taxable liability and provides you with a refund, or reduces what you owe. Which is the gov't returning your money and I guess, in your way of thinking, is free money. Or do you pay the full amount, no pre-tax 401k, etc. and don't try to reduce your taxes?

They should give carbon tax credits for NOT having kids. Also insurance discounts for keeping teens off the roads:)
 

TBrownTX

Member
Dec 25, 2020
757
811
Dallas, TX
I hear you, but the credit helps people who might want an EV but the price is slightly outside of their affordability.

You don't have to apply for the credit, nor do you have to qualify for the credit to buy an EV. Plus, it is not free money, it is a credit, so you already paid the gov't taxes and this is a reduction. Do you take your children as dependents? Child Credit? Do you itemize your taxes and take deductions? All of that is reducing your taxable liability and provides you with a refund, or reduces what you owe. Which is the gov't returning your money and I guess, in your way of thinking, is free money. Or do you pay the full amount, no pre-tax 401k, etc. and don't try to reduce your taxes?

I’m all for lower taxes. However we have a 28 trillion dollar deficit. We have families loosing wage earners to COVID, massive job losses, and many loosing their businesses.

Not saying EV credits are a bad idea, but surely we have better ways to spend the money we don’t have right now?

I feel horrible for anyone who wants to buy a Tesla because they can’t afford it without a tax credit, but not that horrible.

U.S. National Debt Clock : Real Time

Tim
 

acacia

Member
Oct 16, 2020
78
72
Scottsdale, AZ
EDIT: The AGI phaseout is for USED EV credit.

https://mikethompson.house.gov/sites/mikethompson.house.gov/files/GREEN Act 2021 Bill Text.pdf

‘SEC. 36B. PREVIOUSLY-OWNED QUALIFIED PLUG-IN ELEC- TRIC DRIVE MOTOR VEHICLES.
‘‘(2) ADJUSTED GROSS INCOME.—The amount which would (but for this paragraph) be allowed as a credit under subsection (a) shall be reduced (but not below zero) by $250 for each $1,000 (or fraction thereof) by which the taxpayer’s adjusted gross in- come exceeds $30,000 (twice such amount in the case of a joint return).


I hear you, but the credit helps people who might want an EV but the price is slightly outside of their affordability.

You don't have to apply for the credit, nor do you have to qualify for the credit to buy an EV. Plus, it is not free money, it is a credit, so you already paid the gov't taxes and this is a reduction. Do you take your children as dependents? Child Credit? Do you itemize your taxes and take deductions? All of that is reducing your taxable liability and provides you with a refund, or reduces what you owe. Which is the gov't returning your money and I guess, in your way of thinking, is free money. Or do you pay the full amount, no pre-tax 401k, etc. and don't try to reduce your taxes?
As currently written, the AGI requirement renders this point moot.
 

Snow Drift

[Off-Road Assist] Activated
Feb 10, 2016
1,974
1,499
Long Island
I’m all for lower taxes. However we have a 28 trillion dollar deficit. We have families loosing wage earners to COVID, massive job losses, and many loosing their businesses.

Not saying EV credits are a bad idea, but surely we have better ways to spend the money we don’t have right now?

I feel horrible for anyone who wants to buy a Tesla because they can’t afford it without a tax credit, but not that horrible.

U.S. National Debt Clock : Real Time

Tim
So, don't take deductions, don't take credits or make pre-tax contributions. You can send additional tax payments to the IRS. That is your choice and it would be noble.

But, let's think about the economic, environmental and local health impacts of using gasoline/diesel. Giving people a financial incentive today to buy EVs could lower the future cost to the US Gov't to undue the harm caused by millions of more ICE cars bought in 2021+.
 

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