Tesla EV Tax Credits coming back?

[Big Dog]

BBB polls well ...

"Free" stuff always polls well. Who doesn't want clean air and clean water? But support is not quite so strong when "other" folks are asked to pay for the free stuff, thru higher (gas, utilitiy, housing) prices, inflation, your family's job, taxes, and the like.

But as to the topic, I do believe there is bipartisan support for more EV credits.

 

[torifile]

Can we quit talking politics and just focus on our cars? I don’t come here for the politics talk.

 

[mwdietertg]

Agreed, but he also sees the danger or those bills that will cause unsustainable budget deficit if not addressed carefully. Those bills as written are dangerous and irresponsible, and we (the people) will be the only ones who will suffer, not the politician, not the elites.

Then why did he lead negotiations and support the BIF package? It adds $256B to the deficit over 10 years. Sounds dangerous and irresponsible.

 

[Bosco33]

A couple weeks ago, I was convinced the EV credits were out. I figured they would been an obvious cut and now they actually look to be one of the least controversial parts of the bill.

 

[Unreal]

terest in FSD. I do have interest in cold, hard cash. Besides, it’d be dumb for Tesla to do anything like that. The incentive costs them absolutely nothing. Aside from the carrying cost of the cars on their books

Can we quit talking politics and just focus on our cars? I don’t come here for the politics talk.

I can only imagine what discussions Tesla is having on all this. Really really wish the version that passes is the existing $7,500 retroactive to May for all automakers without the 200k auto sales limit.

 

[highstrunghero]

So what's next steps on this bill? The vote didn't happen on Tuesday. Is there a new target deadline?

 

[mwdietertg]

So what's next steps on this bill? The vote didn't happen on Tuesday. Is there a new target deadline?

It is going to be messy from the sound of it. Today, Pelosi put back 4 Weeks of Paid Family/Medical Leave into the House bill for vote. There will likely be a vote on this late this week or early next week.

Manchin has been clear he is against this so expect the Senate version to differ. If the Senate passes a different version, it will then go back to the House.

There is plenty of skepticism this will be done before Thanksgiving at this point.

 

[k.alexander]

It is going to be messy from the sound of it. Today, Pelosi put back 4 Weeks of Paid Family/Medical Leave into the House bill for vote. There will likely be a vote on this late this week or early next week.

Manchin has been clear he is against this so expect the Senate version to differ. If the Senate passes a different version, it will then go back to the House.

There is plenty of skepticism this will be done before Thanksgiving at this point.

Great...here we go again

 

[Teslitored]

I'm a little confused..... sorry if it's a dumb question, but I have to ask...please clarify...

If it's passed,

Will this EV Tax credit benefit only to people with tax liability???

In my case, my Tax bill at the end of the year is close to zero.... could I still get some benefit of this EV Tax credit???

 

[Unclepaul]

Pelosi seems to be reformulating the bill to get enough votes to pass. Nobody is sure what is actually in the bill or how it will end up. It is just horse trading to see how much they can get away with and what they will have to give to each legislator to buy their votes. Kind of a mess, but once again I imagine She will tell everybody they must vote for the bill before they can see what is in the bill

Believe it will be hard to explain how a Union built car will be less polluting than a non-Union built car...simple pandering to Unions that funnel $Millions every year into Democrat campaign funds (including hers).

Seems like they are gaming the bill to assure that Tesla buyers will get less $$ than legacy ICE buyers.

 

[DukeofURL]

In my case, my Tax bill at the end of the year is close to zero.... could I still get some benefit of this EV Tax credit???

It's not related to whether you receive a refund or whether you pay extra taxes, but your total tax liability. Anyone making over $53k (of W2 earnings, other income sources are taxed differently) has roughly a $7500 federal tax liability, which would make them eligible for the full $7500 refund. If the majority of your income is from royalties or investment interest, that would be considered capital gains, and taxed at a lower percentage, whereas if you own your own business, you may pay higher taxes (unless you have many write-offs) and need less total income.

TL;DR US tax code is needlessly complex, but at the end of the day if you can afford a new Tesla, it's almost certain you'd qualify for the amount (unless, of course, you make over new the $400k/800k per year limit).

 

[mwdietertg]

Believe it will be hard to explain how a Union built car will be less polluting than a non-Union built car...simple pandering to Unions that funnel $Millions every year into Democrat campaign funds (including hers).

Michael Burgess (R-TX) submitted an amendment yesterday to remove the union credit. Will see if it survives the Rules committee

"Removes unfair incentives for electric vehicles manufactured at facilities operating under collective bargaining agreements."

 

[Teslitored]

It's not related to whether you receive a refund or whether you pay extra taxes, but your total tax liability. Anyone making over $53k (of W2 earnings, other income sources are taxed differently) has roughly a $7500 federal tax liability, which would make them eligible for the full $7500 refund. If the majority of your income is from royalties or investment interest, that would be considered capital gains, and taxed at a lower percentage, whereas if you own your own business, you may pay higher taxes (unless you have many write-offs) and need less total income.

TL;DR US tax code is needlessly complex, but at the end of the day if you can afford a new Tesla, it's almost certain you'd qualify for the amount (unless, of course, you make over new the $400k/800k per year limit).

I make much more than $53K and my Tax liability are more than $7.5K ....it's just that with my deduction/credits , I end to owe almost Zero

Thanks for the clarification ....

 

[leaftoy]

I make much more than $53K and my Tax liability are more than $7.5K ....it's just that with my deduction/credits , I end to owe almost Zero

Thanks for the clarification ....

In any case as the bill is currently written, I believe the tax benefit is fully refundable, as in even folks have lesser tax liability will still get the full amount.

 

[tangible1]

In any case as the bill is currently written, I believe the tax benefit is fully refundable, as in even folks have lesser tax liability will still get the full amount.

If there's going to be a rebate or credit, that's how it should be structured, as a Point of Sale rebate. Let the Dealers / Manufacturers bear the burden of collecting from the Govt.
Otherwise, people making enough to declare Schedule A deductions get most of the benefit, and those who do not, get almost zilch.
That's the definition of a regressive tax, hitting those less well off while benefiting those who are already well off.

 

[Jschoef]

Here is probably a very dumb question. What if I buy it with a loan then pay off the loan in 2022…could this be a loop hole as I don’t get the title until 2022? I’m guessing most certainly no…

 

[carlos31820]

Here is probably a very dumb question. What if I buy it with a loan then pay off the loan in 2022…could this be a loop hole as I don’t get the title until 2022? I’m guessing most certainly no…

It's based on purchase date (delivery date) not the date you "own" the car by paying it off.

 

[MorrisonHiker]

Here is probably a very dumb question. What if I buy it with a loan then pay off the loan in 2022…could this be a loop hole as I don’t get the title until 2022? I’m guessing most certainly no…

No. The tax credit is based on when the vehicle is placed in service, meaning the date you take delivery of it.

 

[PNWLeccy]

House Modifications to EV Tax Credit

The revised legislation is [here]

• Income Caps
  • $800,000 *-->* $500,000 (joint filers)
  • $400,000 --> $250,000 (single filers)
• Vehicle MSRP Caps
  • Vans: $64,000 --> $80,000
  • SUVs: $69,000 --> $80,000
  • Pickup Trucks: $74,000 --> $80,000
  • Other: $55,000 --> $55,000 (*unchanged*)
• New Provision
  • Each taxpayer cannot claim more than 1 vehicle per year

 

[PineNut]

Also it’s been said it has to be manufactured in 2022. This would push it to mid to late January to take delivery.

That wouldn't make sense, and I don't see it in the bill in its current form.

You just need to purchase a new car to qualify and the purchase date must be Jan 1st 2022 or later. If the credit only applied to 2022 models then dealers would have a huge problem selling new cars from earlier model years if they end up costing thousands more than a 2022 model after the credit is applied.

Also, as has been pointed out, this new proposed tax credit would be fully refundable and you don't need to owe income tax or even have income in order to qualify. You just need to file a tax return and request the credit.

I think the current bill will allow the credit to be taken at point of sale in 2023. I'm not sure how good an idea that is because I can see a lot of tricks (and possible fraud) by some dealers. At a minimum I can see pressure to steer you to purchase expensive options (or upgrade to to a higher level model) by saying don't worry, the tax credit will pay for it. At worse, the dealer might find a way to pocket the credit if a buyer doesn't know about it.