$7000 Tax Credit in 2021 - retroactive?

[benh57]

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#]

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]

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]

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?

 

[jeremymc7]

Because as I understand it, things could have changed, you couldn’t delay an order for numerous months.

 

[ArizonaJon]

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.

 

[Brandon#]

New Bill Could Revive EV Tax Credit For Tesla And GM, Include Used Cars

 

[acacia]

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.

 

[Snow Drift]

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?

 

[EVDRVN]

Because as I understand it, things could have changed, you couldn’t delay an order for numerous months.

Mine is delayed since June of 2020

 

[EVDRVN]

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]

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]

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.

 

[jeremymc7]

Mine is delayed since June of 2020

Delayed as is back ordered with factory or delayed as in you’re told them to hold your order and not assign a VIN until you call them.

 

[EVDRVN]

Delayed as is back ordered with factory or delayed as in you’re told them to hold your order and not assign a VIN until you call them.

Delayed as they kept pestering me to take the car until I told them to put it on hold.

 

[benh57]

As currently written, the AGI requirement renders this point moot.

Guessing you missed the start of the post you quoted. The AGI limit is for Used only, not new. There is no AGI limit for the credit for new vehicles.

 

[Snow Drift]

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+.

 

[TBrownTX]

Great I will take yours. Thanks!

Exactly why we are 28 trillion dollars in debt.

Tim

 

[Brandon#]

Exactly why we are 28 trillion dollars in debt.

Tim

The 100+ corporations like Amazon, DowDupont, Chevron, GE etc that pay zero in taxes probably don’t help the situation either.

I’d be willing to bet this temporary $7k tax credit is a drop in the bucket compared to the taxes avoided there, but that’s a whole other topic.

 

[EVDRVN]

Exactly why we are 28 trillion dollars in debt.

Tim

I think it started when little George got ahold of the govt CC and started charging things he could not afford. Remember that surplus? Imagine that.