Bill Introduced to Extend Electric Vehicle Tax Credit

[SSedan]

We need more tax cuts for the rich folks who can afford a Tesla................

Those of you gotten towards the current administration are the same ones who will claim the tax cuts last winter were just for the rich, then you come here and get upset about a tax credit on your choice of $50-150k vehicle expiring.

Most folks aren't buying $50k plus cars those of us who are doing better than average are and much of the country relies on used vehicles or cheaper ones.

Are any Model 3s being delivered for much if anything below $50k?

The $50k I spent on a used highish mileage P85 was more than I ever spent on a car before. Matter of face it is more than I spent on almost all the previous cars I ever owned before in total.

 

[dgpcolorado]

What about road taxes that EV's don't pay yet?

In my state plug-in cars are charged an extra registration fee. Some of it goes to roads and some to a charge station grant fund. I've been paying it for years and think it is fair.

A weight and mileage based road tax system would be fairer than a gas tax, although more difficult to implement. One advantage of the gas tax is that it offers a small offset for the pollution produced and a bit of an economic disincentive for purchase.

 

[adaptabl]

In my state plug-in cars are charged an extra registration fee. Some of it goes to roads and some to a charge station grant fund. I've been paying it for years and think it is fair.

A weight and mileage based road tax system would be fairer than a gas tax, although more difficult to implement. One advantage of the gas tax is that it offers a small offset for the pollution produced and a bit of an economic disincentive for purchase.

$50.00

It is far less than the road taxes ICE cars are paying in each gallon of fuel over a year.

You also get a $5,000.00 state tax incentive. That's 100 years of EV registration fees.

Sound like a good deal to me.

 

[ItsNotAboutTheMoney]

We need more tax cuts for the rich folks who can afford a Tesla................

Those of you gotten towards the current administration are the same ones who will claim the tax cuts last winter were just for the rich, then you come here and get upset about a tax credit on your choice of $50-150k vehicle expiring.

Most folks aren't buying $50k plus cars those of us who are doing better than average are and much of the country relies on used vehicles or cheaper ones.

Are any Model 3s being delivered for much if anything below $50k?

The $50k I spent on a used highish mileage P85 was more than I ever spent on a car before. Matter of face it is more than I spent on almost all the previous cars I ever owned before in total.

The country also relies on the "rich" paying most of the taxes. Unless progressive taxes are eliminated there is no fairness argument. The only valid argument is that based on effectiveness.

If you think that the tax credit doesn't encourage wealthy people to buy the cars, you aren't aware of what behavioral psychology says. The "rich" can also afford to buy the most gas-guzzling, conflict-perpetuating, pollution-spewing vehicles, they buy more new vehicles than used vehicles, they drive their vehicles more and they can afford to live far from the impacts of their behavior: they're a good group to persuade to electrify.

In any case I think you're making some false connections. The tax credit value was calculated to balance the equivalent fossil fuel subsidies, and the aim of the tax credit is promote sales of plug-ins. It's not there to help people on low incomes buy a car. It's there to help sell plug-ins in order to help ensure, accelerate and promote the growth of a natural plug-in market. These credits only exist because new technology is expensive, which means that it's typically going to be people on higher incomes who'll be buying the cars while the credit's in place. The reason Tesla has been successful is because it took a smart approach to the market and its core ideas on range and charging network were the best and will be implemented in the market.

I don't want to see the tax credit extended but not to stop subsidizing Tesla purchases. I think that we've reached a transitional point where the technological advances, combined with other mandates in the USA and elsewhere mean that manufacturers will have to be serious in delivering PEVs to market, they won't need the additional price support to do it and we really need to see a focus on manufacturers lowering prices.

 

[dgpcolorado]

$50.00

It is far less than the road taxes ICE cars are paying in each gallon of fuel over a year.

Is it? Depends on miles and mileage — 11,000+ miles in a Prius (a common car driven by those who purchase EVs) and less than half that in full-size SUV or truck. I wouldn't mind doubling the fee to make it a closer match.

You also get a $5,000.00 state tax incentive. That's 100 years of EV registration fees.

Sound like a good deal to me.

Indeed, although you will be pleased to learn that the "Innovative Motor Vehicle" tax credit begins phasing out in 2020 and will be gone entirely by the end of 2021. That begs the question: "What purpose is served by such incentives?" In Colorado it is to increase the proportion of EVs on the road to reduce air pollution — Denver's infamous winter "brown cloud." My guess is that the trend toward increasing numbers of EVs is pretty much set, so the tax credit has outlived its usefulness. Others disagree.

 

[kmartin]

What about road taxes that EV's don't pay yet?

In NC we pay an annual EV registration tax designed to roughly match the lost gas tax revenue. And NC does not have any EV purchase incentives FWIW.

 

[Brovane]

What about road taxes that EV's don't pay yet?

What about it? It isn't the fault of EV owners that the Federal and State Governments tied a road usage tax to a petroleum based fuel that is being replaced with alternative energy storage products. Sounds like they need to change the way they collect a fee for road usage, don't you?