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EV tax credit increased from 7.5k to 10k??

Discussion in 'Energy, Environment, and Policy' started by stealthnhawk, Mar 7, 2012.

  1. stealthnhawk

    stealthnhawk Member

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    Any comments?
    White House annouces $4.7B effort for advanced-technology vehicles, including EV Everywhere

    Does this increase apply toward tesla model s?


    ====
    It's a big week for compressed natural gas vehicles, thanks to President Obama's announcement today that his administration wants to increase federal support for CNG automobiles by introducing a tax credit similar to the one in place for plug-in vehicles. Plug-in vehicles, too, could get a big boost – and a double-whammy at that – with the current tax credit exchanged for a point-of-sale rebate and an increase in the maximum value from $7,500 to $10,000. The President made the announcement today at a Daimler Trucks North America plant in North Carolina.
     
  2. stopcrazypp

    stopcrazypp Well-Known Member

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  3. Sig698

    Sig698 Model S Sig Perf #698

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    It's only a proposed increase at the moment, but if it does pass, then chances are that yes, it would apply to the Model S. Get ready for some congressional deadlock, first, though!
     
  4. Ardie

    Ardie Member

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    Over the years, I have noticed that Congress has very little trouble spending money under the guise of benefiting their constituents, espescially during an election year.

    -- Ardie
     
  5. stealthnhawk

    stealthnhawk Member

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    Hopefully, it will pass by the time I configure my model s
     
  6. tnawara

    tnawara Member

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    #6 tnawara, Mar 7, 2012
    Last edited: Mar 7, 2012
    There are some interesting details to this that, depending on reaction from Congress and the general political climate, may cause me to use my "one time deferral" in taking my Model S delivery. In particular:

    The President proposes to improve the current tax credit for electric vehicles by
    • Expanding eligibility for the credit to a broader range of advanced vehicle technologies;
    • Increasing the amount from $7,500, making it scalable up to $10,000;
    • Reforming the credit to make it available at the point-of-sale by making it transferable to the dealer or financier, allowing consumers to benefit when they purchase a vehicle rather than when they file their taxes; and
    • Removing the cap on the number of vehicles per manufacturer eligible for the credit and, instead, ramping down and eventually eliminating the credit at the end of the decade.

     
  7. Robert.Boston

    Robert.Boston Model S VIN P01536

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    #7 Robert.Boston, Mar 7, 2012
    Last edited: Mar 7, 2012
    Suppose:
    a. This bill passes, or at least the part re EV credits and,
    b. You have the option of taking delivery from Tesla in 2012, or delaying until 2013 using your one-time deferral, thereby getting an extra $2500.

    Would you choose to defer and save $2,500, or take delivery this year?
     
  8. AnOutsider

    AnOutsider S532 # XS27

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    A or B dont seem like separate options? Either way, I wouldn't defer.
     
  9. Tommy

    Tommy Member

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    Interesting dilemma you pose, I suspect those with early production slots such as AnOutsider would take delivery, however those with production slots in the November/December might be a little more circumspect and delay to January 1st!.
     
  10. Trnsl8r

    Trnsl8r Blue 85kwh since 12/8/12

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    #10 Trnsl8r, Mar 7, 2012
    Last edited by a moderator: Mar 13, 2016
    Made me think of this...

     
  11. Larry Chanin

    Larry Chanin Model S Perf Sig 1055

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    Aside from the increase from $7,500 to $10,000, would a point-of-sales rebate decrease sales taxes, for states that have them, in comparison to the current tax credit?

    In other words, currently the sales tax is calculated based on the gross price. Under this proposal the rebate would be subtracted before sales taxes are calculated?

    Larry
     
  12. Iz

    Iz EVs are here to stay

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    Given the current gridlock in congress these days I doubt this would pass. Would be great if it did. I would consider delaying as it would reduce the overall Model S cost.
     
  13. Lloyd

    Lloyd Active Member

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    Does this new proposal have a phase out with income?
     
  14. aviators99

    aviators99 Model S - R140

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    I would think that it would, since they're calling it a "rebate". My recollection is that "normal" dealer rebates are before sales tax, right? If this is true, it's more than a $2500 savings.
     
  15. fairlycool

    fairlycool Member

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    They've been talking about this for a while, but doubt it'll pass during this election year. Maybe next year, but it'll still take a miracle.
     
  16. zachster

    zachster Member

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    The treasury proposal we are talking about here does NOT apply to ANY car with a MSRP above $45k. So unless things change, we are still at $7.5K
     
  17. tnawara

    tnawara Member

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    @Zachster - Is it just the additional $2500 that doesn't apply, or the full proposal? I've only read the press release and didn't see that distinction listed there - is there a location to view the full proposal?
     
  18. smorgasbord

    smorgasbord Active Member

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    I think it's an smart political tact by Obama to remove the objections to the EV tax credit by expanding it to include CNG powered cars - that will shut Fox and Co. up, since they promote fracking for natural gas.

    And since there's only one mass-produced CNG car in the US, it won't change much short-term except to help Volt and Leaf and Ford Focus EV sales.
     
  19. zachster

    zachster Member

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    #19 zachster, Mar 8, 2012
    Last edited: Mar 8, 2012
    Sure thing. Though we have a LONG way to go before anything becomes final at this point.

    Here is the most relevant portion (with a link to the entire Green Book, see page 32,33 for the entire section):

    Here is the Treasury Dept. link, click on the FY 2013 proposal

    Honestly the best thing to come out of this proposal is not the additional $2,500 credit some under $45K BEV's might get, it's the shift of a buyer's credit to a seller's credit. Basically converting a tax credit to a point-of-sale discount that all consumer can fully realize at the time of purchase. Provided automakers/dealers pass along this savings to customers this is GREAT news and I hope the idea stays in tact.
     
  20. spatterso911

    spatterso911 MSP#7577 **--** MX#1891

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    +1. It still marks a better deal than we had 2 days ago. Let's hope the state incentives follow suit!
     

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