Raise available $7500 Incentive limits. Act today please

[gene]

Hi Guys,

According the Plug-In-Amersica: Act today. Congress may raise limits on the $7500 EV incentive. And why not? Oil companies get even more tax breaks!!!

TODAY MAY BE THE VOTE! Click link below to send already pre-made letter to your senator and congressperson.


Plug In America Action Alert

 

[Cheburashka]

Shouldn't have a tax break for either.

 

[Runt8]

They're trying to add the cap removal to the bill, but as it's written the bill doesn't include it. However, it does include a provision to bring back the 30% tax rebate for EV charging infrastructure, retroactive to 12/31/2016.

 

[RedModel3]

Thank you for bringing this to our attention!

 

[RedModel3]

Shouldn't have a tax break for either.

But as long as oil has a tax break, EV's should have one too.

 

[Trips]

You can also depreciate your race horses for 3 years and your motorsports complexes for seven years. Now I'm in.

 

[bro1999]

Honestly, I don't like a straight cap removal. I'd rather there be some set overall number applicable to all manufacturers (1 million credits or something). That way the laggards would be enticed to develop their own EVs, as a finite # of credits would be available. Plus then it wouldn't punish the manufacturers that have already made investments in EV technology (Tesla/GM/Nissan, etc.)

 

[cpa]

About 25 years ago or so, Congress stumbled upon the phrase, "raising taxes without raising taxes." Congress passed a lot of tax breaks while simultaneously placing income or other restrictions on the availability of these breaks. In other cases Congress put floors on deductions.

Education credits and pension contribution credits come to mind. The deduction for personal exemptions (frequently moot because of AMT) and the 2% haircut for miscellaneous deductions and the 3% overall itemized deduction shave are examples of reducing tax benefits for people whose income exceed certain thresholds. There are others too, like student loan interest deduction.

It would see to me that the EV credit could be parallel to this concept. Establish a minimum and maximum credit, with the maximum credit phased down to the minimum if income exceeds a threshold. Eliminate the 200,000 cap.

This might persuade auto makers to have more than just a $40K BEV. They might expand their offerings to three or four models with higher price points because they will not have a ceiling on the quantity of their vehicles sold that are eligible for the credit.

 

[ℬête Noire]

Honestly, I don't like a straight cap removal. I'd rather there be some set overall number applicable to all manufacturers (1 million credits or something). That way the laggards would be enticed to develop their own EVs, as a finite # of credits would be available. Plus then it wouldn't punish the manufacturers that have already made investments in EV technology (Tesla/GM/Nissan, etc.)

That likely has some merit to it, though could be difficult to swing. Does this program currently have a sunset date for all rebates? It's been in effect for a very a long time. It isn't uncommon that economic policy legislation falls out of wack with intent and reality when you get out past a decade, requiring tweaking.

At the least I'm uneasy with ongoing $7500 rebates w/o end. Even if limited to some companies, when it gets down to over 20% of the purchase prices of a vehicle it's going to create a lot of distortion. Applied so unevenly, to different products in the same category, at one point in time makes it doubly so.

 

[bro1999]

That likely has some merit to it, though could be difficult to swing. Does this program currently have a sunset date for all rebates? It's been in effect for a very a long time. It isn't uncommon that economic policy legislation falls out of wack with intent and reality when you get out past a decade, requiring tweaking.

At the least I'm uneasy with ongoing $7500 rebates w/o end. Even if limited to some companies, when it gets down to over 20% of the purchase prices of a vehicle it's going to create a lot of distortion. Applied so unevenly, to different products in the same category, at one point in time makes it doubly so.

No time sunset, only the 200k per manufacturer trigger for expiration of the credit.

 

[McRat]

To bring back on topic, the $7500 EV credit is for the upper middle class and above. But that's who's buying EVs to begin with.

 

[LCR1]

To bring back on topic, the $7500 EV credit is for the upper middle class and above. But that's who's buying EVs to begin with.

Exactly, you have to have a tax liability of $7,500 in order to claim all of it anyways. A single person with no dependents would need to have an income for about 47K AFTER all other deductions at accounted for. This would put most single, no dependent people into the 60s for gross income. In all but a select few states/ cities that makes you well to do.

 

[ohmman]

mod note: 60 posts moved to politics. Many had good, useful information but sadly lost context in the thread without the political pieces. Those posts are all preserved so if there is a non political point that's on topic here, please feel free to repost.

That said, I'm out of here.