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

[aviators99]

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.

...and the sales tax savings that goes along with it.

 

[EVNow]

The problem is how the WH plans to pay for this - by removing subsidies to Oil companies. That is the reason, this won't pass.

 

[Sig698]

...and the sales tax savings that goes along with it.

I'm not so sure about that. For example, when I bought my iPhone with the contract discount for ~$200, I still got taxed on the full MSRP of ~$500.

 

[aviators99]

I'm not so sure about that. For example, when I bought my iPhone with the contract discount for ~$200, I still got taxed on the full MSRP of ~$500.

Yes, I just checked. Rebates ARE taxable. But depending on how it's structured, maybe Tesla could just lower the price by that amount if they are getting the money directly (in which case it would not be taxable).

 

[Majerus]

The extra $2500 would not make the Tech package hurt as bad...

 

[aviators99]

The extra $2500 would not make the Tech package hurt as bad...

The extra $2500 would not apply to the Model S.

 

[spatterso911]

So we are looking at a no win situation. Or at least we may have some confidence that the $7500 credit isn't going anywhere soon. I'm just glad they are talking about it.

 

[EVNow]

In the unlikely event of this passing - we can atleast predict that Infiniti EV & BMW i3 will be priced below $45k ;-)

 

[Beavis]

So we are looking at a no win situation. Or at least we may have some confidence that the $7500 credit isn't going anywhere soon. I'm just glad they are talking about it.

The credit expires at the end of this year. It will need to be extended after the election.

 

[vfx]

What stops anyone from taking the cash and reselling the car?

 

[Norbert]

The extra $2500 would not apply to the Model S.

Why wouldn't it, without the cap?

 

[tnawara]

Why wouldn't it, without the cap?

I'm confused. The way the proposal is written, there *is* a cap. Cars > $45K would have a $7500 cap on the credit, therefore the additional $2500 wouldn't apply to the Model S because of its $57,400 starting price.

 

[Lloyd]

I'm confused. The way the proposal is written, there *is* a cap. Cars > $45K would have a $7500 cap on the credit, therefore the additional $2500 wouldn't apply to the Model S because of its $57,400 starting price.

Kind of like a tiered tax schedule only in reverse!

 

[Bound466]

Hypothetical: Let's say the cap for cars > $45k wasn't there. Isn't is likely that Tesla would just raise their price without the credit by $2500? That way they keep the price to the consumer the same, and they get an extra $2500 out of each vehicle.

The point of sale credit would be awesome though.

 

[Norbert]

I'm confused. The way the proposal is written, there *is* a cap. Cars > $45K would have a $7500 cap on the credit, therefore the additional $2500 wouldn't apply to the Model S because of its $57,400 starting price.

I think the point of the original comment was to say that the proposal would be better without the cap. As then it would also apply to the Model S. So I was wondering whether there would be some other, additional reason.

Maybe EV enthusiasts who are able to pay $47,500 are also able to find another $2,500 somewhere, but for not-so-much-EV-enthusiasts who are comparing prices, it would make the Model S more competitive.

But much more importantly, it appears currently difficult to offer a reasonable EV at below $45k *and* make profit on it. So the real downside is that it makes life harder for car companies that aren't swimming in money from the ICEs they sell, and for those that do, it makes them less enthusiastic about selling EVs as each additional EV sold is a loss, a disadvantage for the company. And that just doesn't work very well.

 

[Norbert]

Hypothetical: Let's say the cap for cars > $45k wasn't there. Isn't is likely that Tesla would just raise their price without the credit by $2500? That way they keep the price to the consumer the same, and they get an extra $2500 out of each vehicle.

It depends on supply/demand. Don't we want EV companies to make profit? That's what will encourage more companies to build more EVs (or those that do to survive and to be able to invest in building better EVs).

So I think all this talk about whose pocket it might go into, is misguided.