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$7000 Tax Credit in 2021 - retroactive?
- Thread starter bigfntuna
- Start date
Don't forget all of the tragedies and challenges that happened in that time. It’s difficult to compare apples to apples when one president had: 9/11, war, financial crisis, bailouts galore, Katrina, etc... and the other didn’t.
I don’t see how Bill could have managed to come out with a surplus or even a balanced budget considering all of those factors.
ArizonaJon
Member
If true, the credit may be limited to quantity per manufacturer. What happens if too many cars were sold between now and passing the bill and the credit us entirely used up with retroactive purchases?
Most likely wont be retroactive.
The whole purpose is to encourage the new manufacturung of EV cars (the credit going to the manufacturer with the option of savings passed to the consumer), not reward those who bought the car with the means to afford it.
With the $7500 tax credit, there was no set number of cars that could receive the tax credit. The 200,000 "limit" was when they started phasing out/reducing the amount of the tax credit. After 200,000 vehicles were sold per manufacturer, starting in the next quarter for 6 months, all vehicles delivered (unlimited) from that manufacturer were eligible for $3750. Then for the next 6 months, all vehicles delivered (unlimited) were eligible for $1875. Tesla ramped up production to greatly increase the number of vehicles that were able to claim the tax credit.
So, if they retroactively reward 400k cars with the 7,000 credit (a ton have been made since 2018) they've got X amount if time before its gone again and foreign made cars are still more competitive. More likely, wont be retroactive.
The whole point is to put US manufacturers on equal footing with foreign produced EV cars that are beginning to show up.
A lot:
www.statista.com
Tesla deliveries by quarter 2024 | Statista
Tesla quarterly deliveries worldwide broke records in 2022 and 2023. This came after Tesla deliveries increased to over 300,000 in the fourth quarter of 2021.
www.statista.com
Thank you. I had no idea they produced so many cars lately. Looks like roughly 400K per year for the past 2 years.
I see your point about not retroactive to so many. Maybe retroactive to Jan 1? Hard to say how to incentivize and not penalize. Interesting...
I see your point about not retroactive to so many. Maybe retroactive to Jan 1? Hard to say how to incentivize and not penalize. Interesting...
Tesla saleman told me yesterday not to wait for this to pass as they would probably just raise the price.
Well, that’s because the salesman wants to sell cars now
I think we can safely assume that the sales person is just guessing. If you don't need the car right now, book it now and postpone the delivery date so as to get the price advantage and tax credits IF ANY.
OCJeff
Active Member
Also, if you order/deposit now it locks in your price. Then price increases would not affect you.
I’m personally losing faith in anything that would be effective in 2021. Likely 2022 if at all.
Uncle Paul
Well-Known Member
Salesperson may be right. Have seen Tesla before lower pricing after Tax Credits went away. Depending on supply vs demand, they could easily raise prices back up to capture some of those credits.
Mrbrock
Active Member
Look at the past, Tesla raised prices when the first tax cuts went into effect and lowered them when they were phased out.
OCJeff
Active Member
I also think a lot of time has passed. That was then this is now, by which I mean there is a lot more competition in the market now.
I’m curious if Chevy would raise the price on the Bolt if the ITC comes back. At the same time I’m curious if the federal government would react (at all) to such tactics across multiple manufacturers.
The only competition Tesla has, is reaching/sustaining 100% production capacity and delivery without issues.
As long as they keep it maxed and hit new quotas each quarter, they can raise and lower prices however and whenever they want.
People want Tesla cars. I'm not sure if the other ICE horsepower fanboys are lining up for electric pony and muscle cars from the 60s manufacturers, if anything they'll get dinged from their base for selling out.
Retroactive would only work for the current calendar year due to the IRS.
If they stretched the rules they could include 2020 but unlikely.
if they made it retroactive or even talked of being retroactive for this year I would buy immediately before prices go up.
Next the “credit” is meant to continue until EVs compromise a specific percentage of sales PERIOD
It also can be claimed in full regardless of how low your income is.
No limit until that happens
