Tesla EV Tax Credits coming back?

[Fairchild]

In the newest version, the tax credit WILL NOT BE RETROACTIVE.

First-year refund will be at tax time. 2nd through10th year refund will be at the time of sale.

Following is a very current, comprehensive and informative video that sums it all up. I doubt if there will be many more changes.

I sure hope the TRI-Motor CYBERTRK stays under $80k!

 

[NHK X]

Someone with the means is going to pick what they want when they want it, perceived cost benefits be damned.
I know this because this is quite literally my business.

The goal with any subsidy/tax benefit should be to aid those who otherwise would not have the choice open to them financially -- The wholesale proliferation game has already been tried and we should move past it.

I would argue that it’s not just the “rich” who think that way. Lots of people spend a much higher ratio of their income on cars… and flip through cars every couple years. Look at the data. Is it financially smart no, can they technically afford it? Yes. While at lower income levels raw affordability really does matter, for much of the middle class and above its more a matter of prioritizing what you do with your money, whether financially smart or not.

Do you think income caps should be lowered? I think if we want to truly make an an affordability decision than it should be lowered substantially.

 

[NHK X]

Someone with the means is going to pick what they want when they want it, perceived cost benefits be damned.

You said it perfectly. Ridiculous to subsidize those with very high incomes, into a high end car.

I think that’s the problem with all of this is that perception of wealth is relative. What you think is rediculous for someone “wealthier” than you, likely is thought by those “poorer” than you. Someone making 30k a year will probably look at these income caps and find it ridiculous that a household making 500k is getting a subsidy.

 

[aparan]

" • is acquired for use by the taxpayer and not for resale" With this clause, I think folks who wants to flip it quickly for a profit can't use the tax credits. May impact the crazy resale prices we see now

"is acquired for use by the taxpayer and not for resale" - Come to think of it, I think the current language regarding resale is confusing.
Does that mean, you cannot ever sell the EV? What if I got an EV and didn't like it after 2 months of usage?
When some of the state rebates were rolled out, language was very specific such as " Will have to keep the EV for a minimum of 3 years" etc Not very open ended like above

 

[Robotpedlr]

It sounds like the retroactive start may be eliminated anyway, but if they make it retroactive to May 24 2021 like some of the proposals I saw, will that also include the MSRP limit, or would the balance of this year apply to all EVs?

 

[Corndart]

It sounds like the retroactive start may be eliminated anyway, but if they make it retroactive to May 24 2021 like some of the proposals I saw, will that also include the MSRP limit, or would the balance of this year apply to all EVs?

"sounds like?" Definitely eliminated in the bill passed by the House. Anticipating any changes in the Senate that move further away from budget neutrality sure feels like hopium to me. Someone posted a nice Twitter link that summarized in table form so you don't have to pore over the bill and unpack it here:

Tesla EV Tax Credits coming back?

Off topic, but I just gotta know… What is so funny, @ElectricIAC ? 🤔 😂

teslamotorsclub.com

 

[Spidey616]

It sounds like the retroactive start may be eliminated anyway, but if they make it retroactive to May 24 2021 like some of the proposals I saw, will that also include the MSRP limit, or would the balance of this year apply to all EVs?

Retroactive hasn't been on the table for months at this point. I'd be shocked if it got reinsterted.

 

[doomsday997]

Everyone seriously needs to get over the retro fantasy and move on. It ain’t happening. Zero chance whatsoever. If you already have a Tesla you paid what you paid and that’s it, this bill is already super expensive as it is. The senate if anything is going to cut things down further not add to it.

 

[patmurphey]

pIt sounds like the retroactive start may be eliminated anyway, but if they make it retroactive to May 24 2021 like some of the proposals I saw, will that also include the MSRP limit, or would the balance of this year apply to all EVs?

Retroactive start won't be "eliminated", it isn't there to eliminate. The House bill is being taken up by the Senate, the Senate provisions are not on the table, no "May 24 2021" or "$40,000 limit". Any changes would be amendments to the House Bill

 

[pepperoni]

Everyone seriously needs to get over the retro fantasy and move on. It ain’t happening. Zero chance whatsoever. If you already have a Tesla you paid what you paid and that’s it, this bill is already super expensive as it is. The senate if anything is going to cut things down further not add to it.

It’s the zombie idea that won’t die.

 

[Robotpedlr]

Ok, I think I hear everyone loud and clear… thanks for the replies. I just havent been up to speed on the rules or proposed bill changes.

 

[jsmay311]

"is acquired for use by the taxpayer and not for resale" - Come to think of it, I think the current language regarding resale is confusing.
Does that mean, you cannot ever sell the EV? What if I got an EV and didn't like it after 2 months of usage?
When some of the state rebates were rolled out, language was very specific such as " Will have to keep the EV for a minimum of 3 years" etc Not very open ended like above

Since there’s no minimum duration specified, it just means you can’t resell it brand new.

Take ownership, pay sales tax, register/title it, own it / drive it around for as long as you want, then you can sell it *used* if you want.

 

[aparan]

Since there’s no minimum duration specified, it just means you can’t resell it brand new.

Take ownership, pay sales tax, register/title it, own it / drive it around for as long as you want, then you can sell it *used* if you want.

How do someone resell brand new? For Tesla for example, don't the person booked the car will have to take delivery, pay taxes, register , title etc? If not, how would some one resell it ?

 

[hobbesH]

Everyone seriously needs to get over the retro fantasy and move on. It ain’t happening. Zero chance whatsoever. If you already have a Tesla you paid what you paid and that’s it, this bill is already super expensive as it is. The senate if anything is going to cut things down further not add to it.

Right. Heard from NPR yesterday that it's expected Biden to sign this bill next year. So there is no way it be retroactive.

 

[Corndart]

Right. Heard from NPR yesterday that it's expected Biden to sign this bill next year. So there is no way it be retroactive.

Have you read the bill or actually followed the various discussions and proposals? The version the House passed takes effect 1/1/2022. Retroactive in this context means applying to purchases in 2021.

 

[SageBrush]

Take ownership, pay sales tax, register/title it,

That about covers it, with an emphasis on pay sales tax

 

[aparan]

That about covers it, with an emphasis on pay sales tax

Currently what I see on the Bill is that "EV is acquired for use by the taxpayer and not for resale". No mandatory time limit for anyone to keep the car if taking tax credits. Am I missing anything?

So, the way things are stated now on the bill and if the bill passes, don't see anything wrong in anyone getting an EV next year, pay sales tax, title/register it, take advantage of the tax credits a , sell it whenever you want assuming resale prices holds steady ....could be 1 month or 1 year from your purchase date.

 

[SageBrush]

So, the way things are stated now on the bill and if the bill passes, don't see anything wrong in anyone getting an EV next year, pay sales tax, title/register it, take advantage of the tax credits a , sell it whenever you want assuming resale prices holds steady ....could be 1 month or 1 year from your purchase date.

Word to the wise: DO NOT beard the IRS in its den.

If you give the impression that you bought an EV as a speculative profit venture you are asking for trouble. Even if you end up prevailing, the time, aggravation and costs involved will not be worth it.

 

[Spam2Yam]

Quick question regarding the reconciliation process, is it for the fiscal year? As in June 30, 2022? So if things get delayed in the Senate and goes back to the house, even with the Dec 31, 2021 date, if Biden signs it in Feb, then that's when people would be allowed to claim it and everyone that got their cars in Jan is SOL? Or did the language change to make it available on Jan 1st even if the bill gets signed after?

 

[patmurphey]

There will be an effective date, no, matter when a bill is enacted. At present the bill under consideration has an effective date for credits of 1/1/2022. Nothing says it can't be changed to date of enactment if later.