I'd rather the administration focus on something important like C-19...a restoration of the EV tax credits seems rather trivial when we are likely to hit 500,000 C-19 deaths before long.
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Is MY Demand down in US because people are waiting for restoration of the federal tax credit?
- Thread starter Wilber
- Start date
Uncle Paul
Well-Known Member
Mrbrock
Active Member
Plan for Climate Change and Environmental Justice | Joe Biden
Biden’s climate plan calls for “accelerating deployment” of EVs but also vows he “will restore the full electric vehicle tax credit to incentivize the purchase of these vehicles” and work to ensure the credit is targeted to benefit middle-class buyers and U.S. electric vehicle manufacturers. (Post-Stimulus Electric Car Tax Credit Backers Looking to Biden)
it is not a law or bill yet but a pledge he made. It could be an executive order at some point, who knows. Tesla is an American EV manufacturer so it would qualify and would likely follow most states where anything with a base price under $50k qualifies for incentives, although I think it should be total price to prevent manufacturers from offering stripped down base to hit $50k but allow options up to $100k.
I guess it would depend on how (if) it's implemented. The NJ EV Rebate was an after-sale rebate, and leasing qualified. It went to the consumer. When (if) they reinstate it this year, they've said it would be a POS discount, so I guess if you're leasing, that might either go to reduce the price of the car or towards the cap cost. The Federal tax rebate was a credit on income tax, so that would have gone to the consumer when you file your taxes the following year.
gavine
Petrol Head turned EV Enthusiast
SR stands for "Standard Range", not "Short Range". I don't blame you. A lot of people call it that. Tesla needs to change the nomenclature on those because short-range sounds bad and it's not the case. 250 miles (or whatever) is far from short.
That's true. A few days ago I was answering the usual questions from an interested young man. Eventually, he worked up the courage to ask how much I paid. He was truly startled - he understood that a Tesla was going to sell in the $100k range.
![angus[Y]oung](/tmc/data/avatars/l/141/141264.jpg?1620160343){kind=avatar}
angus[Y]oung
Active Member
@Cigar Man initial impressions are hard to overcome. Tesla started with the very expensive roadster and then the less-but-still-quite expensive S and X, so when most people were first made aware of the brand, it was probably in the era of more expensive models only.
Yes - but what if you have already leased the vehicle in 2021 prior to the re-introduction of the Tax Rebate. Typically those are deducted from the cap cost when leasing since the manufacturer takes the Rebate as they "own" the car.
Mrbrock
Active Member
Looks like we’ll get an extended $7000 credit at some point under the new GREEN Act. But it will start the day the bill is enacted so likely the start of a quarter for IRS ease. Depending on how long it takes to get approved maybe July 1? I think this will create a lull in demand or at least a lull in deliveries. I see many orders with people requesting delayed deliveries to start after the bill enactment date.
Yep--really don't need the credit (and would prefer the gov not spend/give away more $ to promote EV adoption--lets focus on bigger issues), but don't want to pass it up if it will come along in the next few months. Had planned to order a new Y this week, but going to wait at least a bit now and see what shakes out---honestly, this is pretty much the worst thing that could have happened as far as I am concerned (relative to green credit anyway)--if it said 2021 purchases, I'd be buying (regardless of whether it passes)......but this 'from the date of passage' complicates things.
Mrbrock
Active Member
Yeah. My wife is looking to upgrade from her VW Tiguan and has been looking at the Id.4 due to brand and lower cost factoring in tax credits. If this comes through we are in line for $10,500 in credits and rebates so it makes the Y much more competitive and since we already have a 3 we wouldn’t need separate charging and have to plan trips differently based on where we’d stop for charging. We probably aren’t ready to move forward for a few months so this news is actually good for me. With US sales of around 300k last year, the next 400k to get the $7k credit could all happen in 2021 if it was retroactive to Jan 1. This will hopefully allow us to claim the credit and consider a Y. Would much rather have a car with an established ecosystem vs one that is brand new and very buggy.
ratsbew
Active Member
Yes, demand is down. I was going to order last Friday....haven't ordered yet. $7,000 is way too much to just leave on the table.
From what I can see in the GREEN Act of 2021:
- the credit is extended (but reduced to $7k, and means-tested for used EVs); and
- Tesla would start counting-up sales from 200,000 on the day the bill passes. At 600k, the credit starts phasing-out
So the thing which starts on the day of passage is the timer for end-of-credit phase-out. The Act doesn't necessarily say that the $7000 credit begins on the same day as the new phase-out counter. For example, when the EVSE Install tax credit was passed at the end of 2019 (Form 8911), it gave a credit for the entire year 2019.
I think it's still a possibility that the credit will start on the same day that the new phaseout counter starts, but it could go either way. I'd suggest that anyone interested contact their senators and inform them that the bill as it is written today only depresses sales of the very EVs it is supposed to promote; and ask them to work to get it amended to be clearer , whether that's "beginning on Jan. 1 of the year of passage" or "beginning Q2 2021" or "beginning 1/1/2022". Anything would be better than depressing EV sales during the April-June automotive sales peak.
- the credit is extended (but reduced to $7k, and means-tested for used EVs); and
- Tesla would start counting-up sales from 200,000 on the day the bill passes. At 600k, the credit starts phasing-out
So the thing which starts on the day of passage is the timer for end-of-credit phase-out. The Act doesn't necessarily say that the $7000 credit begins on the same day as the new phase-out counter. For example, when the EVSE Install tax credit was passed at the end of 2019 (Form 8911), it gave a credit for the entire year 2019.
I think it's still a possibility that the credit will start on the same day that the new phaseout counter starts, but it could go either way. I'd suggest that anyone interested contact their senators and inform them that the bill as it is written today only depresses sales of the very EVs it is supposed to promote; and ask them to work to get it amended to be clearer , whether that's "beginning on Jan. 1 of the year of passage" or "beginning Q2 2021" or "beginning 1/1/2022". Anything would be better than depressing EV sales during the April-June automotive sales peak.
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I am also waiting and will extend the lease on my current EV. A 14% reduction in the price of the car would be foolish to leave on the table.
Update: the GREEN Act of 2021 is in the House Ways & Means committee for initial fixes.
If any of the following US Representatives are your representative, please reach out to them.
Let them know the bill to support American jobs making EVs is actually delaying purchases of GM and Tesla cars, and they need to write into the Act what day the tax credit would take effect.
Richard E. Neal, Chair (D-MA)
Lloyd Doggett (D-TX)
Mike Thompson (D-CA)
John B. Larson (D-CT)
Earl Blumenauer (D-OR)
Ron Kind (D-WI)
Bill Pascrell, Jr. (D-NJ)
Danny K. Davis (D-IL)
Linda T. Sánchez (D-CA)
Brian Higgins (D-NY)
Terri A. Sewell (D-AL)
Suzan DelBene (D-WA)
Judy Chu (D-CA)
Gwen Moore (D-WI)
Dan Kildee (D-MI)
Brendan Boyle (D-PA)
Don Beyer (D-VA)
Dwight Evans (D-PA)
Brad Schneider (D-IL)
Tom Suozzi (D-NY)
Jimmy Panetta (D-CA)
Stephanie Murphy (D-FL)
Jimmy Gomez (D-CA)
Steven Horsford (D-NV)
Stacey E. Plaskett (D-VI)
Kevin Brady, Ranking Member (R-TX)
Devin Nunes (R-CA)
Vern Buchanan (R-FL)
Adrian Smith (R-NE)
Tom Reed (R-NY)
Mike Kelly (R-PA)
Jason Smith (R-MO)
Tom Rice (R-SC)
David Schweikert (R-AZ)
Jackie Walorski (R-IN)
Darin LaHood (R-IL)
Brad Wenstrup (R-OH)
Jodey Arrington (R-TX)
Drew Ferguson (R-GA)
Ron Estes (R-KS)
Lloyd Smucker (R-PA)
Kevin Hern (R-OK)
Carol Miller (R-WV)
If any of the following US Representatives are your representative, please reach out to them.
Let them know the bill to support American jobs making EVs is actually delaying purchases of GM and Tesla cars, and they need to write into the Act what day the tax credit would take effect.
Richard E. Neal, Chair (D-MA)
Lloyd Doggett (D-TX)
Mike Thompson (D-CA)
John B. Larson (D-CT)
Earl Blumenauer (D-OR)
Ron Kind (D-WI)
Bill Pascrell, Jr. (D-NJ)
Danny K. Davis (D-IL)
Linda T. Sánchez (D-CA)
Brian Higgins (D-NY)
Terri A. Sewell (D-AL)
Suzan DelBene (D-WA)
Judy Chu (D-CA)
Gwen Moore (D-WI)
Dan Kildee (D-MI)
Brendan Boyle (D-PA)
Don Beyer (D-VA)
Dwight Evans (D-PA)
Brad Schneider (D-IL)
Tom Suozzi (D-NY)
Jimmy Panetta (D-CA)
Stephanie Murphy (D-FL)
Jimmy Gomez (D-CA)
Steven Horsford (D-NV)
Stacey E. Plaskett (D-VI)
Kevin Brady, Ranking Member (R-TX)
Devin Nunes (R-CA)
Vern Buchanan (R-FL)
Adrian Smith (R-NE)
Tom Reed (R-NY)
Mike Kelly (R-PA)
Jason Smith (R-MO)
Tom Rice (R-SC)
David Schweikert (R-AZ)
Jackie Walorski (R-IN)
Darin LaHood (R-IL)
Brad Wenstrup (R-OH)
Jodey Arrington (R-TX)
Drew Ferguson (R-GA)
Ron Estes (R-KS)
Lloyd Smucker (R-PA)
Kevin Hern (R-OK)
Carol Miller (R-WV)
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