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Return of $7500 Federal Tax Credit?

Discussion in 'Off Topic' started by elguapo, Feb 5, 2021.

  1. elguapo

    elguapo Supporting Member

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    I don’t get it. Why would the $7,500 be available again? If they do anything like that again, they will likely exclude cars over $100,000.
     
    • Disagree x 1
  2. mmalia

    mmalia Member

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    Not sure what language will be in the final bill but they didn’t limit to that last time (though they should have, maybe even 70k) and you can configure S and X below 100k
     
  3. bayareaever

    bayareaever Member

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    I’m hoping they make it refundable, that’s what would really help middle class people fully use it.

    Cutting off the ~5% of high price Ev sales from the credit doesn’t make much sense,
    But then again this is the govt were talking about.

    It’s just a matter of time IMO before Biden brings back the credit-the details just aren’t known yet.

    Does anybody know how the dems can modify it? Reconciliation? Executive order? Some other means?

    Personally, I probably won’t be buying another ev until the details are clear. I’m sure many other people are in the same boat.
     
    • Like x 2
  4. flar

    flar Member

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    I'd rather that however they modify the rebate program, that it punish the slow players. Right now the early adopters run/ran out of credit before the slow adopters even lifted a finger. It should really be that you get the credit until there are at least N companies with EV lines that comprise at least X% of their sales for at least Y quarters in a row. Once there is actual competition, then the credit phases out over time for everyone (and returns if the players leave the market again).
     
    • Like x 3
    • Helpful x 1
  5. mmalia

    mmalia Member

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    This is a great idea!
     
    • Like x 1
  6. elguapo

    elguapo Supporting Member

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    Great idea. If you’re 15 years late to the party, like many of these manufacturers, you shouldn’t get an advantage over the early one like Tesla. There would be no EV market were it not for Tesla, at this point. They can probably do it with corporate incentives though, not end user ones. The challenge is they shouldn’t be DISincentivizing any end buyer from buying an EV and they should keep the playing field level to end buyers.
     
  7. Uncle Paul

    Uncle Paul Well-Known Member

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    With the Dems borrowing all the money for their stimulus, it is like paying people $ out of their own checkbooks.

    All the Unemployment, tax credits, stimulus checks, increase in minimum wage etc will need to be repaid, with interest, by the next generation.

    Bailing out states with Federal $ is simply moving the debt from one account to another

    Current administration will be out of power before the bill comes due.

    People are happy to recieve all this money right now, but give little thought of how it will be paid back.

    Even a drunken Sailor needs to sober up sometime :)
     
    • Like x 3
    • Disagree x 1
  8. glide

    glide Active Member

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    It would not. Because the overwhelming majority of the country doesn’t feel like paying for rich peoples toys.

    Frankly, they should be excluding all vehicles over $40K. If you want a Tesla, buy one with your own money.
     
    • Disagree x 2
    • Like x 1
  9. Uncle Paul

    Uncle Paul Well-Known Member

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    Frankly, nobody likes paying for someone elses vehicles. The government gives tax credits to encourage citizens to buy less polluting vehicles. This gives the government less money to pay for other things, or increases debt.

    Government gives homeowners tax breaks, business owners tax brakes, charity donors tax breaks. The number of tax breaks they give people is many pages long. They do this to incentivize certain behavior.

    Rich people will want tax credits for rich people. Poor people will want government programs for poor people (like free cell phones, food stamps, subsidized rents, food banks, free cheese programs, shelter during storms, homeless shelters, free clinics, free abortions, SNAP cards EBT cards, welfare etc.
     
  10. msm859

    msm859 Member

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    Repeal the Trump tax cuts. There's the $2 trillion to pay for this.
     
    • Like x 6
    • Disagree x 1
    • Love x 1
  11. Uncle Paul

    Uncle Paul Well-Known Member

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    Repealing tax cuts often results in those companies raising prices or laying off workers.

    Many tax cuts used to encourage hefty campaign contributions from those benefiting. Seen on both sides.
     
    • Disagree x 1
  12. msm859

    msm859 Member

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    Except they are not all "rich" peoples toys. BEV's are in fact more expensive than ICE vehicles. TO get the price lower to help the "poorer" people, you need to "juice" the industry. Thus, you need the "rich" people for the seed money. Some will do it for the environment but others need a financial push. It benefits society to advance BEV's as quickly as possible AND get the pricing down so if it more affordable for more people. It is being penny wise and pounds foolish to limit the tax breaks to price of car or income of person. If you are giving a $7500 tax break to a millionaire to buy a $100K BEV so what. It helps the cause. And he is still paying a lot of tax on that purchase and if that is his income he his already paying a lot of tax. Better course would be to have a more progressive tax structure and tighten up inheritance tax - if you really want to benefit society.
     
  13. glide

    glide Active Member

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    We are beyond that point with Tesla. Sales were increased with the original credit and since it ran out, Tesla lowered their prices accordingly.

    The incentive worked, now the free money party is over.
     
  14. TSLA Pilot

    TSLA Pilot Active Member

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    Odd how here we find next to zero discussion here on the TRILLIONS of dollars in tax breaks for oil and gas over the past century....

    We must have near 100% EV sales ASAP if we’re to have a useable planet, so let’s follow the leader: Norway.

    Gee, maybe we could learn something from them?

    How did they get such high EV sales so quickly?

    Hmmmmm.
     
    • Like x 3
    • Disagree x 1
  15. Beltsbear

    Beltsbear Member

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    The simpler the better. My personal opinion? The bill should have zero price cap limits, zero production limits and be dropped to $5000. It should apply to any vehicle with 150 epa miles or more of electric range. It should start at a known date soon in the future and not be retroactive. This would save the budget money and encourage adoption. If it had a multi-year horizon, it might encourage Tesla to build more production then even is planned in the USA.
     
  16. tivoboy

    tivoboy Active Member

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    If you read the bill being proposed now by the house, I’m not sure Tesla buyers would still have access to this new $7000 tax credit, since they have to be well beyond 600K overall sales of EV.. GM would re-quality, but not Tesla. They MIGHT re-open the additional 400K sales to Tesla but that could disenfranchise the original 200,001-600,000 buyers who missed out on the tax credit (although did receive a lower price point). What will be really interesting to see though is, if EV companies, Tesla and GM RAISE prices back up to compensate for the buyer now getting a $7000 tax credit again. At this point that would be so obvious and sneaky.
     
  17. WestMichM3

    WestMichM3 Member

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    Will it retrocactive to the beginning of 2021? I am getting mine in 2 weeks and I'll be pissed if I missed out due to a month or two.
     
  18. ItsNotAboutTheMoney

    ItsNotAboutTheMoney Well-Known Member

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    I'm sure that the Bolt's $8500 rebates will disappear.

    The 400,000 limit will help GM and Nissan (hence the TN sponsor), and hurt Tesla, when what they really need to be doing is to make it apply only to vehicles manufactured in the USA, before there's a flood of Chinese EVs.
     
  19. MarcG

    MarcG Active Member

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    Good news:

    Tesla to gain access to 400k more $7k EV tax credits amid Biden's sustainability push

     
  20. jeffcole

    jeffcole Member

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    That’s not how any of that works lol it’s not due to anyone. Theyre borrowing their own money. The only thing that happens is possible inflation.
     

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