Non-Repeal of Tax Credit on Tax Bill Conference Agreement

[JHuberman]

I downloaded the Tax Bill Conference Agreement, and on page 568 of 1097 pages I found the following section.
My take (as well as Bloomberg, Fortune, and CleanTechnica) on this is that the repeal of the $7,500 tax credit did not make it into the final conference agreement.

Here below is the text of the Conference Agreement section on electric vehicles.

3. Repeal of credit for plug-in electric drive motor vehicles (sec. 1102(c) of the House bill
and sec. 30D of the Code)

Present Law
A credit is available for new four-wheeled vehicles (excluding low speed vehicles and
vehicles weighing 14,000 pounds or more) propelled by a battery with at least 4 kilowatt-hours
of electricity that can be charged from an external source. The base credit is $2,500 plus $417
for each kilowatt-hour of additional battery capacity in excess of 4 kilowatt-hours (for a
maximum credit of $7,500). Qualified vehicles are subject to a 200,000 vehicle-permanufacturer
limitation. Once the limitation has been reached the credit is phased down over four calendar quarters.

House Bill
The provision repeals the credit for plug-in electric drive motor vehicles.
Effective date.−The provision is effective for vehicles placed in service in taxable years
beginning after December 31, 2017.

Senate Amendment
No provision.
Sec. 22(e)(3).
Sec. 30D.

Conference Agreement
The conference agreement does not include the House bill provision.

 

[CBPfromTN]

Thanks for the post! I ordered my Model S a few days ago and won't take delivery until (hopefully) early February, 2018. I was hoping the tax credit would not be repealed for 2018. Hopefully it will continue!

 

[TMeister]

Just a note on the tax credit that I'm sure you all know anyways but it pays to bring it up again...

It is not a carry forward credit and so must be used in the same tax year as the one in which you purchase the car. Understanding this made me pull my purchase into 2017 where I could control my federal taxes easier and use up the credit.

 

[CBPfromTN]

Just a note on the tax credit that I'm sure you all know anyways but it pays to bring it up again...

It is not a carry forward credit and so must be used in the same tax year as the one in which you purchase the car. Understanding this made me pull my purchase into 2017 where I could control my federal taxes easier and use up the credit.

Yep, I know. I had to order because there was no stock available in what I want. SO, if the tax credit is not good after Dec. 31, I am out of luck since I won't be taking delivery until February of 2018.
I was just hoping it would be extended for a bit longer. I guess I should've decided I was going to get a Tesla before I did since it took me some time to talk my husband into letting me get it. (I have a 2016 Toyota Avalon Limited Hybrid that I bought new in February of 2016 that has only 8500 miles on it, so he was less than exuberant about my wanting another new vehicle,so soon, especially one that was twice as expensive as the one I have only had less than 2 years....) Anyway, I guess whatever happens, happens. It would be nice if the tax credit is extended into 2018 but if not, I'll still have my Tesla, even though I lose the tax savings.
Do you have any idea when this particular legislation will be decided/announced? I could ask my CPA but he is a jerk and we are changing and haven't met with our new one yet. Thanks in advance!

 

[TMeister]

Yep, I know. I had to order because there was no stock available in what I want. SO, if the tax credit is not good after Dec. 31, I am out of luck since I won't be taking delivery until February of 2018.
I was just hoping it would be extended for a bit longer. I guess I should've decided I was going to get a Tesla before I did since it took me some time to talk my husband into letting me get it. (I have a 2016 Toyota Avalon Limited Hybrid that I bought new in February of 2016 that has only 8500 miles on it, so he was less than exuberant about my wanting another new vehicle,so soon, especially one that was twice as expensive as the one I have only had less than 2 years....) Anyway, I guess whatever happens, happens. It would be nice if the tax credit is extended into 2018 but if not, I'll still have my Tesla, even though I lose the tax savings.
Do you have any idea when this particular legislation will be decided/announced? I could ask my CPA but he is a jerk and we are changing and haven't met with our new one yet. Thanks in advance!

Sorry didn't mean to confuse the issue. You get to use the tax credit in the year you get the car, not when you order. So for your delivery in 2018 you will be able to use the credit.

As others have stated, the bill reconciliation kept the credit in place. This legislation is up for a vote on Dec 19 and would take effect on December 31, 2017 assuming the president signs it.

 

[CBPfromTN]

Sorry didn't mean to confuse the issue. You get to use the tax credit in the year you get the car, not when you order. So for your delivery in 2018 you will be able to use the credit.

As others have stated, the bill reconciliation kept the credit in place. This legislation is up for a vote on Dec 19 and would take effect on December 31, 2017 assuming the president signs it.

No, no, you didn't confuse me. I understand. That is why I am saying I won't get the tax credit if it ends on Dec. 31 because I won't be actually PAYING for it until February. I knew when I placed my order that I wouldn't get my new car until 2018 so I knew that I would not get the tax credit. I am HOPING it will be extended, but not expecting to get the tax credit. I do know it doesn't matter when I order. It's when the car is delivered and paid for that counts. I knew that from the "get-go." But...thanks for the date of the vote. I will be watching for news that day!