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Tax credit (Green ACT)

Discussion in 'Model Y' started by sam2020, Feb 14, 2021.

  1. sam2020

    sam2020 Member

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  2. ItsNotAboutTheMoney

    ItsNotAboutTheMoney Well-Known Member

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  3. sam2020

    sam2020 Member

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    @ItsNotAboutTheMoney Any specific clause? or more details on who are eligible
     
  4. N1L CO2

    N1L CO2 Member

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    I would think you would have to purchase after the bill actually passes and is funded. It wouldn't be "grandfathered" in for those who already bought one. I would also guess that it would be limited to first time EV buyers (within a certain tax bracket) to prevent those existing owners from swapping cars just for the tax break.
     
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  5. Langzaiguy

    Langzaiguy Member

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    These types of incentives aren't usually based on model years, but calendar years. Currently, there is no language to include EVs prior to the date in which it would become law. I'm hoping that it will be inclusive of all EVs sold in 2021. There is precedent for EV tax credits being retroactive to the first of the year. Not banking on that though.
     
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  6. fiveten

    fiveten Member

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  7. Subhuman

    Subhuman Member

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    I’m hoping for this as well. Ordered 1/16 took delivery 2/10. Not holding my breathe but first of the year would be logical.

    The problem with the way the bill is structured now is it incentives people to wait to purchase EV’s which could hurt overall EV adoption which is counter to the whole purpose of the bill.
     
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  8. Brandon#

    Brandon# Member

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    You better hope they revise the income cap too, unless your AGI is <$40k.
     
  9. JHCCAZ

    JHCCAZ Member

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    Thanks for the link Brandon.

    Aside from the non-retroactive wording, ("after the date of the enactment") it seems pretty clear that this bill won't help the majority of enthusiasts here.

    As the $7k credit applies in full only for individual / joint AGI levels of $30k / $60k, then reduces by $250 per $1000 above that, the credit will be zero for AGI levels of $58k / $88k. I suspect that renders it basically useless for the majority of Tesla customers here who seem to have plenty of income from jobs or investments.

    Another interesting point is the credit applies to a batch of 600,000 cars manufactured, then halves and then disappears beyond that. Apparently these sales would be counted regardless of whether or how many of those customers actually qualified for the tax credit. I think this means that very very little of the allotted credit would ever be paid out - only to those Tesla customers who have low AGI but somehow still managed to buy a Tesla.

    I these conditions remain, then I think Tesla should lobby to defer the start of the program until the future Model 2(?), the more affordable car is launched. Otherwise the count will be exceeded (within 2021 most likely) with no benefit to many real purchasers, and no real benefit to Tesla either.
     
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  10. fiveten

    fiveten Member

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    The AGI levels don't apply to the $7k credit part of the bill.
     
  11. JHCCAZ

    JHCCAZ Member

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    OK that's obviously important and I didn't pick that up from Brandon's information or excerpts. What benefits of the bill, then, are subject to the AGI restrictions?
     
  12. AZMurph

    AZMurph Member

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    I just scanned the article and bill linked above and it appears the income limitation is only on used vehicles. I went fast but it also looked like you can take a credit only once every 3 years. I think that’s also only on used, but I’m not positive.

    The new car credit section reads more like a modification of the existing.
     
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  13. fiveten

    fiveten Member

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  14. JHCCAZ

    JHCCAZ Member

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    Thanks, it makes more sense now. Per text search,, there are no other references to Adjusted Gross Income in the document.
     
  15. nart

    nart New Member

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    Does anyone know how to find out when congress will vote on this legislation?
    If it's not too far off, it would be best to wait to see if the Clean Act passes.
     
  16. DanDi58

    DanDi58 Member

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    And that's the way it SHOULD be.
     
  17. Jasaka25

    Jasaka25 Member

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    while I realize that dems have legislative and executive control, this is not encouraging in terms of if it’s worth waiting or not now...

    Pulling data from Congress.gov


    • Average: 263.57 days
    • Median: 215 days
    • Minimum: 1 day (1 - H.J.Res.131
: "Making further continuing appropriations for fiscal year 2015, and for other purposes," a government shutdown stopgap
)
    • Maximum: 712
     
  18. buckyswider

    buckyswider Member

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    I did a keyword search and couldn't find anything about a maximum sale price. Reason I'm looking is because here in PA the <minimal> credit is only for vehicles with a sticker prices < $50K. My target is a LR AWD- red. So in order the get the PA credit I couldn't get the "red" part :). Hopefully the Feds don't follow suit with PA!
     
  19. finky999

    finky999 New Member

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