Legislation to raise the vehicle tax credit to 600,000 vehicles

[iwannam3]

There was legislation "Driving America Forward Act" introduced to increase the cap to 600,000 since Tesla, GM and others have hit or are approaching the 200,000 limit. If it actually passed how would the market respond? All sales would stop until the effective date? Everyone that didn't get the full credit on a previous purchase would be pissed. Would they make the credit retroactive?

New Bipartisan Legislation Would Expand Federal Electric Vehicle Tax Credit

 

[happyzod]

To be honest, the tax credit going away is good. They should just remove it after this year. The government must have given over 2 billion in tax credits in 2018 alone (to Tesla buyers). I would rather have money used to help build a nationwide charging infrastructure. Tesla says it costs a quarter million to build a supercharging station. Spend that 2 billion on DC fast charging stations, you would get 8000 DC fast charging stations around the nation. Then, electric cars won't need to have 300 miles of range to be viable, they could probably function pretty well with only 200 miles of range.

 

[Evoforce]

To be honest, the tax credit going away is good. They should just remove it after this year. The government must have given over 2 billion in tax credits in 2018 alone (to Tesla buyers). I would rather have money used to help build a nationwide charging infrastructure. Tesla says it costs a quarter million to build a supercharging station. Spend that 2 billion on DC fast charging stations, you would get 8000 DC fast charging stations around the nation. Then, electric cars won't need to have 300 miles of range to be viable, they could probably function pretty well with only 200 miles of range.

You can pretty much figure they are not going to (yet) invest in charging infrastructure. So... keep the credit coming for BEV new car sales. There is no proposal for an (either or) option on the table for what you speak of. Why give those companies (other than Tesla) the gravy for so far doing nothing or very little, instead of providing incentive for consumers to offset taxes?

 

[TampaRich]

Interesting to see the 2 Michigan senators on board with this now that it will benefit Ford & GM.

 

[BluestarE3]

There was legislation "Driving America Forward Act" introduced to increase the cap to 600,000 since Tesla, GM and others have hit or are approaching the 200,000 limit. If it actually passed how would the market respond? All sales would stop until the effective date? Everyone that didn't get the full credit on a previous purchase would be pissed. Would they make the credit retroactive?

New Bipartisan Legislation Would Expand Federal Electric Vehicle Tax Credit

Since no one has filed their 2019 taxes yet, anyone who already purchased or will purchase a Tesla in 2019 should still qualify for up to the full $7,500 credit... assuming this legislation passes and takes effect this year and that it simply moves the goalpost out to 600K units. Likewise for GM customers of Bolts and Volts.

 

[Akikiki]

To be honest, the tax credit going away is good. They should just remove it after this year. The government must have given over 2 billion in tax credits in 2018 alone (to Tesla buyers). I would rather have money used to help build a nationwide charging infrastructure. Tesla says it costs a quarter million to build a supercharging station. Spend that 2 billion on DC fast charging stations, you would get 8000 DC fast charging stations around the nation. Then, electric cars won't need to have 300 miles of range to be viable, they could probably function pretty well with only 200 miles of range.

Please don't misunderstand my questions. I am not against your logic behind using money to build an infrastructure, but how would that work? The electricity would not be free - gasoline isn't free. Gas cars are going to be around for still along time, you don't think gas companies are going to let the government (without a lobbying effort) give free electricity and undermine selling gasoline? The government does not build gasoline, service station or install gas pumps, so they wouldn't be building charging stations. Would they give $ 2B to private companies to build stations? They don't give money to oil companies or private companies to build gas stations.

 

[BluestarE3]

You can pretty much figure they are not going to (yet) invest in charging infrastructure. So... keep the credit coming for BEV new car sales. There is no proposal for an (either or) option on the table for what you speak of. Why give those companies (other than Tesla) the gravy for so far doing nothing or very little, instead of providing incentive for consumers to offset taxes?

Right. We're not good about investing in infrastructure in this country. Not sexy. On the other hand, helping sell more new cars and creating/preserving jobs and manufacturing is an easier sell. If the money isn't used to incentivize EV sales, there's no guarantee that an equivalent amount of funding will go toward a fast-charging infrastructure.

 

[Akikiki]

The linked article says four senators introduced the bill. Two senators from Michigan. Amazing, when the state is currently just about the most anti-Tesla state in the country.

 

[happyzod]

Please don't misunderstand my questions. I am not against your logic behind using money to build an infrastructure, but how would that work? The electricity would not be free - gasoline isn't free. Gas cars are going to be around for still along time, you don't think gas companies are going to let the government (without a lobbying effort) give free electricity and undermine selling gasoline? The government does not build gasoline, service station or install gas pumps, so they wouldn't be building charging stations. Would they give $ 2B to private companies to build stations? They don't give money to oil companies or private companies to build gas stations.

Haha, of course not free electricity. It would probably be 2 billion to pay private companies build the stations + contract to operate/maintain the stations. So of course Tesla and all the other players (Electrify America/Chargepoint/ETC) could bid.

 

[wingnutsglory]

I do recall seeing this back in the spring but has there actually been any movement on it since then? It's seemed pretty dead based on the little we've seen since...

 

[Akikiki]

Your reply makes some pretty good sense, even if the idea of turning money over "for free" to private companies to build a business model and collect money from the taxpayers doesn't. I mean, doesn't make sense to taxpayers, but that's what our elected representatives do, huh?

 

[Akikiki]

I do recall seeing this back in the spring but has there actually been any movement on it since then? It's seemed pretty dead based on the little we've seen since...

Back in the spring there was talk too that there would be on ceiling on the count.

 

[iwannam3]

There are more companies involved in a wider dieselgate. Like VW, Bosch, FCA etc should be fined and the money go toward more charging locations.

 

[cpa]

If my dim bulb of a memory recalls correctly:

Away back in 2009 when we were in the throes of a recession, President Obama signed the TIGER legislation. (Transportation Investment Generating Economic Recovery.) The J1772 plug and the 30A charging stations started popping up in unexpected places. Much of the construction costs of these charging stations used TIGER funds. I think ChargePoint, Blink, and others gobbled up some of this money to start their business models.

So, there is at least some precedent for the feds to fund BEV charging infrastructure.