Harry.K.Chu
Member
Indeed, the Public Comment Period is required by law when an Agency (e.g., IRS) is delegated the authority to implement a legislative act. The intent of the comment period is to allow the public and market participants to participate in shaping the implementation of the rules which can make them less disruptive and more effective.My view is it's clear now what the limits are for each model in 2023. IRS used classifications based on weight, passengers, other tax laws, etc that have precedence, they weren't pulled out of nowhere. Id suspect the rules don't change.
Personally the idea of a higher dollar limit for heavier SUV is stupid anyways, and there should be just one MSRP limit. But that was Congress decision to structure it this way and not make it clearly defined.
Who knows, maybe the IRS rules do change. If so then many buyers will change what they buy at that time IMO. Or if congress decides to just make this more simple and amend the law. But once we are in a current year where people have or have not done actions it's much less likely those changes get made retroactively IMO.
In the instant matter, the IRS has issued guidance ahead of the comment period which is problematic and possibly a violation of agency law. If the system works as it is intended, there is likely changes coming in the finalized rules around the EV Tax Credit. But Government notoriously is slow to act.
For automakers like Cadillac, Ford, VW or Tesla I do not think they are in a position to lower prices or make costly manufacturing changes to meet the highly misguided guidance. The prudent course of action is to wait for the finalized rule release sometime towards summer or even fall.
Buyers should direct their frustrations to their elected officials and the administration who have mismanaged the implementation of this Act. And by the way, the Audi Q5 PHEV doesn't meet the rumored requirements being used by the IRS and it is classified as an SUV.
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