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Increased EV incentives

Discussion in 'Electric Vehicles' started by rogbmw, Sep 12, 2012.

  1. rogbmw

    rogbmw Member

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    #1 rogbmw, Sep 12, 2012
    Last edited: Sep 12, 2012
  2. dsm363

    dsm363 Roadster + Sig Model S

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    That has been brought up by President Obama in the past but has no chance of passing the House, especially in an election year unfortunately.
     
  3. ChadS

    ChadS Petroleum is for sissies

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    Agreed there is no chance it will pass this year. And little chance in a future year.

    But moving it from a tax credit to a POS rebate...that may be possible, less expensive, and I think more useful.
     
  4. NEWDL

    NEWDL R#350 R#1323 Sig23 8136

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    How is it less expensive?
     
  5. mitch672

    mitch672 Active Member

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    Less paperwork for the government, although they don't get the "float" on your money.
    It's obviously better for EV sales, if you buy an EV on Jan 2 of any year, you might have to wait 13 months or longer for your credit (assuming you could file on February 1st of the next year, which is doubtful, more like most would not file until March or April, 15-16 months worst case).

    An even bigger issue is if you are financing, you don't have to carry that $7,500 or $10,000 in extra interest & principal payments, making EVs more affordable (lower monthly payments)
     
  6. ChadS

    ChadS Petroleum is for sissies

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    Sorry, I wasn't clear--I meant that converting the $7,500 tax credit to a POS rebate is less expensive (to the government) than raising the tax credit to $10k. Because it's less expensive, it may be possible to get done. And Mitch pointed out some reasons why it's useful.
     
  7. Robert.Boston

    Robert.Boston Model S VIN P01536

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    A POS discount would be a major change and would increase the total cost of the program. The $7500 tax credit can only be used to reduce your tax liability; if you don't pay at least $7,500 in taxes, you can't (fully) use it -- and there are a lot of Americans who don't pay that much in income tax, even Americans who can afford a Model S.
     
  8. GSP

    GSP Member

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    I have heard this before, but I don't see how it would be possible. I would expect that any family with over $50,000 annual income would have over $7,500 tax liability.

    GSP
     
  9. Robert.Boston

    Robert.Boston Model S VIN P01536

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    @GSP: Counter-example: retirees with large portfolios of tax-free bonds.
     
  10. 4sevens.com

    4sevens.com Member

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    Robert - Bond interest payments are taxed as ordinary income, so rates can be as high as 35% -- more than double the maximum 15% levy on stock dividends. Also, bond (as well as stock) investments are post tax - so that money has already been taxed already.
     
  11. ahimberg

    ahimberg Member

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    I believe Robert was referring to Muni Bonds which don't have federal tax on their interest payments. I'm doubting someone would have a portfolio that's completely muni bond though
     
  12. Lloyd

    Lloyd Active Member

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    Not those with tax loss carry-forwards!
     
  13. jerry33

    jerry33 S85 - VIN:P05130 - 3/2/13

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    My guess is that any family in the $50,001 to $200,000 range is not going to have any tax loss carry-forwards. You have to be in the seven figures or close to it range to get those kind of tax breaks.
     

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