It almost certainly will, the parliamentarian will almost certainly force certain provisions to be removed that alone will send it back to the house, not to mention Manchin who's is furious Pelosi put family leave back in. This still has a ways to go.
So if this passes, Tesla's wouldn't be eligible for a tax credit until 2027?Here is a current summary from Electrek... $12,500 EV tax credit still alive, but not yet approved.
Congress passes $1.2 trillion infrastructure bill, $12,500 EV tax credit still awaits passage
President Biden's $1.2 trillion infrastructure bill has been approved but does not yet include the $12,500 EV tax credit.electrek.co
"House speaker Nancy Pelosi began Friday’s congressional session with plans to vote on the $1.75 trillion “Build Back Better Act” and concurrently the $12,500 federal EV tax credit within it. However, a small group of moderates in the House refused to support the legislation without a cost estimate from the Congressional Budget Office (CBO). As a result, the House approved a procedural vote required to open Biden’s “Build Back Better Act” to passage, following an official CBO cost estimate. Those moderates opposed all signed an assurance that they would vote in favor of passage once the score is released. This vote for the larger overall spending package should take place when Congress resumes after a week-long recess.
The Build Back Better Act and its potential $12,500 EV credit still awaits passage following the CBO score and official Congressional approval. A lot can change between now and the official signature in the oval office, but here are the latest terms introduced earlier this week. Note – these exact terms are not confirmed until the bill has been officially passed:
- Federal tax credit for EVs jumps from $7,500 to $12,500
- Keep the $7,500 incentive for new electric cars for 5 years
- Add an additional $4,500 for EVs assembled in the US using union labor
- Another $500 for EVs using battery packs with 50% of components (including cells) made in the US
- Zero-emission vans, SUVs and trucks with MSRPs up to $80,000 qualify (increased from previous policy)
- Electric sedans priced up to $55,000 MSRP qualify (stays the same)
- The full EV tax credit will be available to individuals reporting adjusted gross incomes of $250,000 or less, $500,000 for joint filers (decreased from $400,000 for individuals/$800,000 for joint filers currently in place)
- EVs must be made in the US starting in 2027 to qualify for any of the $12,500 credit
- Eliminates tax credit cap after automakers hit 200,000 EVs sold, making GM and Tesla once again eligible"
No I believe that says that until 2027 any EV is eligible for the tax credit but starting in 2027 only EVs made in the US will qualify. For example the VW ID.4 is currently made in Germany. It will qualify until 2027 but then VW will have to start making them in the US to further qualify for credits.
The House is expected to vote on this next week. The Senate will certainly make changes which the House will need to vote on again. The House's last day of the year is December 10th though so I'd think they need to vote Yes on whatever changes the Senate makes by this time. The Senate will then reconvene on December 13th for their final work period. I think this is all worst case scenario from a timing perspective and they could potentially have it passed by Thanksgiving if you're optimistic. I think absolute worst case scenario is the House has to call a special session at the end of December to get this done.
The Mach E wouldn't be eligible either - it has a 15% "made in US / Canada" composition.
kogod.american.edu
The current production rate for Freemont is 500,000 annually, expansion plans to 700,000. Giga Texas begins to seriously ramp up in 2022 to 1,000,000 per year. Only Model S and X don't qualify under present proposal, Models 3, Y and the Cybertruck do, My estimate is extremely conservative, and does not account for any additional US factories that are planned but not yet sited. Tesla's goal is 20 million a year worldwide, with a substantial portion, US sales. Do some research.
VW will be producing the US version of the id4 in the US beginning early 2022. Hyundai is planning US production of their very competitive line of BEVs. Don't doubt that the European and Japanese US factories will be producing BEVs and PHEVs in volume. Both GM and Ford will be ramping up production and the extra $4,500 will motivate keeping a good percentage in the US, like the F150 lightning and Bolt are now. Stellantis won't be far behind. Remember, ALL foreign made BEVs and PHEVs will be eligible, initially. The credit cost estimates are pathetically low.
Changing the design may make it a new order, price increase and all. You'll get the credit because you won't get the car until next year.
I disagree with this. Tesla has raised MSRP/prices up (~$8000) so far in anticipation of this credit. It's true people were buying Tesla cars before the credit news, but, it will be Tesla who would benefit from the credit ($8000), selling their cars with much higher margin/profits.The funny thing is that the credits will have very little benefit to Tesla, the company, as they are selling every car they can build now, with extended lead times. The beneficiaries of the credits will be the buyers.
I think you don't understand some fundamentals of our economy. Everything is up across the board (materials, labor, transportation) in virtually every segment of the GLOBAL economy.
The MYLR price is up $8K, or 16%, over a year ago. Some of that may be due to increased material and labor costs, but it’s hard to imagine that this explains all of this big price hike. I would guess most of the increase is due to the huge demand and the anticipation of the coming tax credit. Tesla is ramping up production, and I’m sure their pricing goal is to make the demand equal their eventual production capacity. If the government gives everyone $8K to buy one of their cars, they can raise their price by $8K and maintain the same demand. It turns out Adam Smith was right, the principle of supply and demand still holds.
Thumbs up! Corporate greed! Michael Douglas was right. Greed is good! LOL.
Tesla's margins have increased significantly during this period. It's pretty obvious that they're taking advantage of the global supply crunches restricting their competitors.
as it will be effective Dec 31 or when the bill is signed Which ever is later is the effective date.
A company that has sold about a million cars in the US total will suddenly accelerate to selling a million cars *in the US* in 2022 *conservatively*? OK, then.
If we were to back date it to May 21, the people who made the purchases pre-May 21 would complaint! Where do we draw the line? I think the problem as always is Money. They are trying to shrink this bill as much as possible. Thank you, Mr. Manchin!What really sucks is the House version which is still alive is not retro like the Senate Bill to May 21. Hope fully taking delivery in Dec 21 but wont get the benefit of the Tax Rebate
