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Tax Credit Question Is it true ?
- Thread starter weflybye
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Hi all
Saw this in the news this morning....
arstechnica.com
Fingers crossed it doesn't pass
Saw this in the news this morning....
Manchin writes bill to stop temporary electric vehicle tax credits
The senator wants his domestic minerals requirement implemented immediately.
arstechnica.com
Fingers crossed it doesn't pass
So this can really screw a whole bunch of us including me real fast!!
www.engadget.com
Senator Manchin aims to close battery loophole around the $7,500 EV tax credit
Senator Joe Manchin, chairman of the Senate Energy and Natural Resources Committee, has introduced a new bill that squashes a small loophole around the Inflation Reduction Act's (IRA) $7,500 EV tax credit.
www.engadget.com
can they really do that though? we bought it based on the fact that govt is giving the full rebate at least until March. I don't think they can just say, "no, we changed out mind."Joe Manchin is trying to screw us over!
Manchin writes bill to stop temporary electric vehicle tax credits
The senator wants his domestic minerals requirement implemented immediately.
You think so?So this can really screw a whole bunch of us including me real fast!!
Senator Manchin aims to close battery loophole around the $7,500 EV tax credit
Senator Joe Manchin, chairman of the Senate Energy and Natural Resources Committee, has introduced a new bill that squashes a small loophole around the Inflation Reduction Act's (IRA) $7,500 EV tax credit.
Macb00kemdanno
Member
Further to the continuing research into carry forward credits, I have discovered that the same credit of $7500 is available to businesses as a "S.45W Commercial Clean Vehicle Credit" and IS available to be carried forward if the business does not have sufficient tax liability in the year of purchase. That means if you have a business where you use a vehicle that you would normally claim as depreciable then you can claim the credit and carry forward into future tax years any credit not used in the first year. There is no limit on the number of credits that can be claimed if you buy multiple vehicles for a business.
This has been discussed elsewhere in this forum in the past but thought it may be helpful here too.
This has been discussed elsewhere in this forum in the past but thought it may be helpful here too.
Occhis
Member
Prime example of Congress always looking out for business and not for individuals -you know- the voters who put them in office. Some things will never change. Money always gets the desired results.
And as for Manchin, despicable is way too mild. Always in the pocket of fossil fuel industry.
Watts_Up
Well-Known Member
Note: The 'dot' at the end of the above link made it invalid. See below the corrected link:
Commercial Clean Vehicle Credit | Internal Revenue Service
Businesses and tax-exempt organizations that buy electric vehicles and mobile machinery may qualify for clean vehicle tax credits up to $40,000.
We try and nail our taxes pretty close every year (sometimes after all is said and done we have to pay an additional $500, or sometimes we get a refund of $500). But what I want to confirm is that If we continue on the same plan we'll now get a refund, as it is a reduction of the tax liability we've already paid via income taxes ?
Cause there was a rumor floating out there that it is only a bottom line credit of UP TO 7500, and won't generate a refund. However typing that seems a bit odd in and of itself as a reduction/credit to your tax liability would generate a refund automatically if you nailed it at 0 (additional over and beyond income tax).
Cause there was a rumor floating out there that it is only a bottom line credit of UP TO 7500, and won't generate a refund. However typing that seems a bit odd in and of itself as a reduction/credit to your tax liability would generate a refund automatically if you nailed it at 0 (additional over and beyond income tax).
But what I want to confirm is that If we continue on the same plan we'll now get a refund, as it is a reduction of the tax liability we've already paid via income taxes ?
Yes, it's on overall tax liability. You don't have to "owe" $7,500 ore more at the end of the year to get the credit. If you owe $0 at the end of the year but you "paid" $10,000 in federal tax over the course of the year, you'll get the $7,500 credit.
Yes, it's on overall tax liability. You don't have to "owe" $7,500 ore more at the end of the year to get the credit. If you owe $0 at the end of the year but you "paid" $10,000 in federal tax over the course of the year, you'll get the $7,500 credit.
No.....you get no refund $2000 of the tax credit "pays off" your what you owe
Can't believe I have to say this again, to get the full $7500 you would've had to underpay your taxx to the point that the amount you owe in Federal TAX is $7500 or more. So if you want to get the money go to the tax tables to calculate what you might owe and then file a W4 to be taxed with like 10 kids
then you'll owe $7500
When this program FIRST started they let you apply the $7500 to REDUCE you taxable gross income. Like a 401K, comes out doesn't show up on W2
None the credit applied to how much federal tax you owe AFTER you do your 1040 and see how much tax you owe or are owed.
Occhis
Member
If line 24 (total tax, NOT what you owe) is 7500 or more you will get the full 7500 credit. If line 24 is $1-$7500 then you will get that amount back in addition to what might have been deducted from your paycheck or other withholding. Line 24 is your total tax for the year, not what you may or may not owe when you file. The EV credit cannot be more than line 24.
SHOW ME. Give me a URL Why would they credit you owed taxes so you get a refund
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