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Tesla EV Tax Credits coming back?
- Thread starter hnguy054
- Start date
doomsday997
Member
It’s going to pass the house there was little doubt it would happen eventually. The “moderate” holdouts were going to vote for it regardless the waiting for CBO thing was just political theatre. The senate is where it’s going to get very interesting…
What is the current consensus on the Senate and when will they vote for it in the Senate?
doomsday997
Member
Probably not for weeks at the earliest. The senate parliamentarian has to review it and determine anything that violates the Byrd rule. Anything she says has to go will have to be cut or modified (because they don’t have the votes to overrule her) then they have to deal with manchin and Sinema who will also have demands, that could drag on for quite awhile as we just saw in the house. Finally if they have the votes to push it back to the house, the GOP will use every procedural trick in the book to drag it out as long as possible. We also have several crucial votes that will take precedence of over the BBB, and put it on the back burner, the budget and the debt ceiling
I think the prospects of BBB (and the new EV credit) getting passed are good. Joe Manchin, the perpetual road block, has commented that he doesn't support the union-specific portion of the EV tax credit; he's said nothing about opposing a new tax credit in general. So a decent chance of the credit getting pared down from the max $12.5k the House is about to pass, but I don't think Senate changes will affect Teslas being eligible for at least $8k. And who knows, it's possible that the portion Teslas are eligible for could actually increase to say $10k. More Teslas in WV mean more electricity demand, which means more business for those coal plants Manchin loves so much.
I could definitely seen eligibility for the credit be narrowed though.
Yeah, only 1 Democrat voted Nay. Now I expect the rhetoric with Manchin and Sinema to pick up. They really control the process from here on out. Given they are all going on vacation now until after Thanksgiving, and then a total of other more important bills when they return, I am still not feeling confident this gets to a vote in the Senate before the end of the year.
What’s going to destroy the middle class is the total ignorance about climate change, science, math, diplomacy, trade and local, national and global economics that we are going to get in modest measure after the 2022 elections and in great measure after those in 2024.
The only thing worse that having smart, somewhat misguided people running the country is turning it over to stupid ones who barely got through eighth grade, believe in bizarre conspiracies and do things by “gut."
Who knows what Sinema will want. She doesn’t appear interested in reelection, anything could happen. Manchin likely will at least want big cuts is not an excuse to vote it all down.
Fluffhead
Member
The Senate is not on vacation until November 29, excluding Thanksgiving but they likely won't even look at this until late December regardless. December session runs December 13-31. They have to pass the defense bill, funding, and debt ceiling first.
The House passage (which included votes from moderates and progressives) and relatively favorable CBO score are positive developments.
It seems likely Sinema and Manchin will seek additional cuts (e.g, paid leave), but the base EV credit seems relatively safe.
It seems likely Sinema and Manchin will seek additional cuts (e.g, paid leave), but the base EV credit seems relatively safe.
Thanks for the correction on the dates - I just assumed with Thanksgiving, not many would be around DC. While nothing will formally get taken up until later in the month of December, I certainly would expect to see a lot of commentary surrounding it from all sides. We might at least get a feeling for where it is heading sooner than later.
doomsday997
Member
Agreed although it will almost certainly change from the house version, the EV tax credit isn’t a main issue at stake here. The big issue is if they fail to come to an agreement with manchin/sinema and the whole bill implodes. For example manchin demands they remove paid family leave but sanders says he’s a no vote if they do that. The cuts will also have to satisfy progressives in the house which will have to vote on this again. This is going to get very interesting.
Slumpey326
Member
It has to get through senate first and will definitely be grilled and reworded
Last edited:
pepperoni
Member
No, the house bill states that it only applies to cars acquired after Jan 1 2022. The Senate could change that but why would they since that would only make the bill more expensive with no incentive benefit.
Looks like the original income and MSRP caps made it to the final bill (HR 5376)
(1) shall be the lesser of--
``(A) the modified adjusted gross income for the
taxable year in which the credit is claimed, or
``(B) the modified adjusted gross income for the
immediately preceding taxable year.
``(3) Threshold amount.--For purposes of paragraph (1), the
term `threshold amount' means--
``(A) $800,000 in the case of a joint return or
surviving spouse (half such amount for married filing
separately),
``(B) $600,000 in the case of a head of household,
and
``(C) $400,000 in any other case.
``(d) Manufacturer's Suggested Retail Price Limitation.--
``(1) In general.--No credit shall be allowed under
subsection (a) for a vehicle with a manufacturer's suggested
retail price in excess of the applicable limitation.
``(2) Applicable limitation.--For purposes of paragraph
(1), the applicable limitation for each vehicle classification
is as follows:
``(A) Sedans.--In the case of a sedan, $55,000.
``(B) Vans.--In the case of a van, $64,000.
``(C) Sport utility vehicles.--In the case of a
sport utility vehicle, $69,000.
``(D) Pickup trucks.--In the case of a pickup
truck, $74,000.
(1) shall be the lesser of--
``(A) the modified adjusted gross income for the
taxable year in which the credit is claimed, or
``(B) the modified adjusted gross income for the
immediately preceding taxable year.
``(3) Threshold amount.--For purposes of paragraph (1), the
term `threshold amount' means--
``(A) $800,000 in the case of a joint return or
surviving spouse (half such amount for married filing
separately),
``(B) $600,000 in the case of a head of household,
and
``(C) $400,000 in any other case.
``(d) Manufacturer's Suggested Retail Price Limitation.--
``(1) In general.--No credit shall be allowed under
subsection (a) for a vehicle with a manufacturer's suggested
retail price in excess of the applicable limitation.
``(2) Applicable limitation.--For purposes of paragraph
(1), the applicable limitation for each vehicle classification
is as follows:
``(A) Sedans.--In the case of a sedan, $55,000.
``(B) Vans.--In the case of a van, $64,000.
``(C) Sport utility vehicles.--In the case of a
sport utility vehicle, $69,000.
``(D) Pickup trucks.--In the case of a pickup
truck, $74,000.
You are looking at the Sep 27 version. Check the latest at rules committee website:
H.R.5376–Build Back Better Act
RULE I COMMITTEE ACTION: REPORTED BY A RECORD VOTE of 9-4 on Thursday, November 4, 2021. FLOOR ACTION ON H. RES. 774: Agreed to by record vote of 221-213, after agreeing to the amendment offered by Mr. McGovern by unanimous consent, after agreeing to the previous question by record vote of...
For the curious, it was Jared Golden, a moderate from Maine, who voted no. His stated reason for voting “no” was due to the House bill raising the SALT cap.
I’m fairly sympathetic with his opposition to that particular provision, but I think there’s a very good chance it gets removed/reworked in the Senate to reduce how much it benefits high-income earners.
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