$7000 Tax Credit in 2021 - retroactive?

[bigfntuna]

I'm curious if anyone can tell reading through the proposed "GREEN Act" language if this would be retro-active for any Tesla purchased in 2021? Here is the blurb from the language and a link to the PDF I found summarizing the proposal:

"Sec. 401. Modification of limitations on new qualified plug-in electric drive motor vehicle credit (§30D). The provision expands the qualified plug-in electric drive motor vehicle credit under Section 30D to apply a new transition period for vehicle sales of a manufacturer between 200,000 and 600,000 electric vehicles (EVs), under which the credit is reduced by $500. The provision replaces the current phaseout period (which begins at 200,000 vehicles) with a phaseout period that instead begins during the second calendar quarter after the 600,000-vehicle threshold is reached. At the start of the new phaseout period, the credit is reduced by 50% for one quarter and terminates thereafter. For manufacturers that pass the 200,000-vehicle threshold before the enactment of this bill, the number of vehicles sold in between 200,000 and those sold on the date of enactment are excluded to determine when the 600,000-vehicle threshold is reached."

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

 

[Telfo]

I would be surprised if they passed something that didnt include at least cars sold this tax year as opposed to some arbitrary date in the middle of the year when the bill passes. that said, its early and who knows what this will look like by the time it passes.

 

[Brandon#]

No, it’s not retroactive as it’s currently written. One the bill goes into affect, the next 400,000 EV’s Tesla sell will be included in the tax credit.

 

[ArizonaJon]

No, it’s not retroactive as it’s currently written. One the bill goes into affect, the next 400,000 EV’s Tesla sell will be included in the tax credit.

I agree with you. But this bill has a long way to go. As I understand the situation it has not even been introduced to the house this session.

 

[tonyb99]

Great, Guess I am in the tax credit doughnut hole....

 

[jeremymc7]

Doubt it will pass. HIGHLY doubt it will be retroactive.

If it passes I'll consider selling one of my 2020's and buying a then current model just for that reason.

 

[Brandon#]

Doubt it will pass. HIGHLY doubt it will be retroactive.

If it passes I'll consider selling one of my 2020's and buying a then current model just for that reason.

Why wouldn’t it pass? The Democrats can push it through.

 

[dinonugget]

Why wouldn't Tesla just raise their prices by $7k and pocket what the government is handing out?

 

[jeremymc7]

That was exactly what they did before, except other way. When the Fed kept getting lower, the car price went down.

 

[jeremymc7]

Why wouldn’t it pass? The Democrats can push it through.

Doubt it. Wait and see is all we can do.

 

[Brandon#]

Doubt it. Wait and see is all we can do.

If they can pass a $1.9 trillion COVID package, this should be a piece of cake.

We shall see soon, hopefully.

 

[jeremymc7]

I think there’s more traction to help people out of work pay their rent and buy food over buying a brand new more expensive EV but yep will have to wait and see.

 

[Brandon#]

I think there’s more traction to help people out of work say their rent and buy food over buying a brand new more expensive EV but yep will have to wait and see.

Agree, that’s why it’s being done first.

 

[tonyb99]

Wonder what the impact on sales will be....will people wait in hopes of this passing?

(I doubt that it will actually pass)

 

[DonaldBecker]

I expect that it won't be retroactive. It's intended to immediately incentivize people to buy EVs.

That's short-sighted. A quirk of human behavior is that retroactively or randomly incentivizing behavior is more cost-effective. But that's not the motivation politicians have. They want to be seen "doing something", and post-facto incentives don't look as good even if they work better.

(Disclaimer: I'm likely to be in the incentive gap. I'm hoping for the credit, but don't believe that it will happen.)

 

[Snow Drift]

Retroactivity would reduce the number of cars Tesla can sell THANKS to the credit. You already bought the car (with the reduced prices remember). You didn't need to be incentivized by a credit. Retroactive credits would reduce the 400k cars by those sold in 2021 before it came out.

If passed, they can advertise the credit as a way to incentivize 400,000 new purchases.

 

[jerm5006]

I'm expected to take delivery in 2 - 3 weeks. I'm hoping there's more info out by then on timing. I'd wait on taking delivery up to 3 months to get the credit. I'd think now that this info is out people are going to hold off on buy EVs so hopefully that will get them moving this bill through, but who knows with politicians.

 

[TBrownTX]

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

 

[Robotpedlr]

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

Great I will take yours. Thanks!

 

[jeremymc7]

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.

The last one I followed it was pushing though, then not passed, then pushing through then not passed. Then it was basically almost passed and they tacked on something else at the last min and whatever they tacked one caused it to be not passed. Then everyone just gave up.

There’s been some many different programs come and go and almost never make it though.