ArizonaJon
Member
If you know how to track a bill through congress, pleaes start a thread on this bill so we can follow it.
-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
Is MY Demand down in US because people are waiting for restoration of the federal tax credit?
- Thread starter Wilber
- Start date
SabrToothSqrl
Active Member
*interested*
If <taxCredit> Expires before <cyberTruck> available.
then
Buy Model S.
Else: Buy cyberTruck
If <taxCredit> Expires before <cyberTruck> available.
then
Buy Model S.
Else: Buy cyberTruck
OCJeff
Active Member
ArizonaJon
Member
OCJeff, thanks. I have signed up to track. Lets hope it starts to move. I did not see a date for a committee hearing. But I may not know how to find this.
The schedules are posted right on congresses website, all you have to do is look around. It gets on the schedule when it gets on the schedule.
Blucenturion
Member
stopcrazypp
Well-Known Member
Not according to the initial summaries released since that person made the comment and the current draft released. Maybe an actual lawyer can do better to analyze the whole thing, and IRS may have different interpretation on implementation, but the current wording is as follows (emphasis in bold):
“(ii) EXCLUSION PERIOD.—For purposes of this subparagraph, the exclusion period is the period—
“(I) beginning on the first date on which the number of new qualified plug-in electric drive motor vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after December 31, 2009, is at least 200,000, and
“(II) ending on the date of the enactment of the GREEN Act of 2021.
...
"(c) Effective Date.—
(1) LIMITATION.—The amendment made by subsection (a) shall apply to vehicles sold after the date of the enactment of this Act."
That says to me the cars sold (by manufacturers past 200k) before the enactment is excluded from the count and also that the amendment only applies to vehicles after the law is enacted (which makes both conditions consistent). I searched through the bill and there is nothing that references January 1, 2021 as the date that the extension would apply to or any other such similar retroactive application. If they did do that, the counting start date might have had to move to the same date, which may complicate the law.
Demand is also down as more competition comes online at lower prices. The new BMW is also going to grab a bunch of market share. There is a article out today saying Tesla is for the first time demand not production limited.
Tesla had excess inventory in the fourth quarter and has never been able to sell out its production capacity, Johnson said.
Deliveries data released by the company showed that it produced 509,737 vehicles in 2020 and delivered 499,550 units.
Related Link: Tesla May Have Already Made More In Profits From Bitcoin Than Electric Vehicles
"We see the company as currently demand constrained rather than production constrained," the analyst said.
This is the primary reason behind Tesla's price cuts and the 471-basis-point contraction in its fourth-quarter automotive gross margin, excluding one-time credit sales, he said.
Tesla had excess inventory in the fourth quarter and has never been able to sell out its production capacity, Johnson said.
Deliveries data released by the company showed that it produced 509,737 vehicles in 2020 and delivered 499,550 units.
Related Link: Tesla May Have Already Made More In Profits From Bitcoin Than Electric Vehicles
"We see the company as currently demand constrained rather than production constrained," the analyst said.
This is the primary reason behind Tesla's price cuts and the 471-basis-point contraction in its fourth-quarter automotive gross margin, excluding one-time credit sales, he said.
OCJeff
Active Member
I don't disagree with you from the language of the act, but from what I recall when Tesla met their 200,000 initial volume limit for the $7500, they allowed ALL submissions through the end of the year to get the full refund. Who is to really say if you had delivery on 3/1/2021 or 2/1/2021. And who had the 200,001 car delivered. They allow for some amount of give/buffer on the cutoff.
That being said, I'm in the same boat as many. Looking to buy, but I'm fine to wait 5-6 months if needed to get the free $7000.
Just not sure I like the new white interior door trim. It removes the white "leather" insert, and replaced it with black (based on initial pictures) with the white dash carryover higher up.
stopcrazypp
Well-Known Member
That's how the law was written. Volume phaseout is done by quarter, not specific date. There is no change to that mechanism. However, the new law as currently written does not give any similar mechanism for qualification.
Article detailing how previous law worked.
US Federal $7,500 Electric Vehicle Credit Expiry Date By Automaker
That being said, I'm in the same boat as many. Looking to buy, but I'm fine to wait 5-6 months if needed to get the free $7000.
Just not sure I like the new white interior door trim. It removes the white "leather" insert, and replaced it with black (based on initial pictures) with the white dash carryover higher up.
Who is "they" - Tesla isn't granting the rebate, it comes from the Feds via a form you complete and include with your 1040. At least this was the way it was handled when I bought a 2016 Porsche Cayenne Plug-In Hybrid - my overall tax liability was reduced by $7,500.
FYI, there is another bill that's been introduced.
Merkley introduces bill to extend electric vehicle tax credit for 10 years - KTVZ
Merkley introduces bill to extend electric vehicle tax credit for 10 years - KTVZ
OCJeff
Active Member
For those who want to track it...
S.395 - 117th Congress (2021-2022): A bill to amend the Internal Revenue Code of 1986 to extend certain tax credits related to electric cars, and for other purposes.
By they I meant the IRS. Your point is well made though. The prior legislation allowed all cars sold in that quarter in which they hit the 200,000 mark to receive the tax credit. So even if they sold 25,000 in that quarter going well over 200,000 they were all eligible for the full 7500 credit under the existing law.
I agree that this new bill should state a start date for manufacturers that have already exceeded 200,000 (say March 1, or July 1, or whatever). That way it doesn't have folks wondering if/when it will be passed which could significantly delay purchases potentially crippling the EV manufacturers and their sales figures.
S.395 - 117th Congress (2021-2022): A bill to amend the Internal Revenue Code of 1986 to extend certain tax credits related to electric cars, and for other purposes.
By they I meant the IRS.
Your point is well made though. The prior legislation allowed all cars sold in that quarter in which they hit the 200,000 mark to receive the tax credit. So even if they sold 25,000 in that quarter going well over 200,000 they were all eligible for the full 7500 credit under the existing law.I agree that this new bill should state a start date for manufacturers that have already exceeded 200,000 (say March 1, or July 1, or whatever). That way it doesn't have folks wondering if/when it will be passed which could significantly delay purchases potentially crippling the EV manufacturers and their sales figures.
This doesn't make any sense.
As much as tesla like to say they work in a mto model, they are not. they build to stock and try to allocate after production. At ~1week of stock, and taking into account logistics lead time, and the number of tesla buyers that reject cars on a weekly basis, they are still heavily supply constrained, not demand constrained
Similar threads
