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Tesla EV Tax Credits coming back?
- Thread starter hnguy054
- Start date
There should be a cap on income and/or car price.
That's what I'm hoping! Fingers crossed that it applies to all 2022 EV purchases and that Tesla's also become eligible for credits again.If the proposal is signed into law soon, do you think it will apply to all 2022 tax year EV purchases?
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Senate Majority Leader Chuck Schumer and Sen. Joe Manchin on Wednesday announced a deal on an energy and health care bill, representing a breakthrough after more than a year of negotiations that have collapsed time and again.www.cnn.com
thesmokingman
Active Member
It starts Jan 1, 2023 so no...If the proposal is signed into law soon, do you think it will apply to all 2022 tax year EV purchases?
Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
So is Model Y technically a SUV? What is the official definition of an SUV? Is there one? Incredibly strange that a slight difference in cabin space will enable a $25k increase in price ceiling for the EV subsidy (Comparing the model 3 vs model y). Hopefully this doesn’t freeze sales in the US...
teslamotorsclub.com
Where does it say that in the bill?It starts Jan 1, 2023 so no...
Tesla, TSLA & the Investment World: the Perpetual Investors' Roundtable
So is Model Y technically a SUV? What is the official definition of an SUV? Is there one? Incredibly strange that a slight difference in cabin space will enable a $25k increase in price ceiling for the EV subsidy (Comparing the model 3 vs model y). Hopefully this doesn’t freeze sales in the US...
On page 386:
But there is something about December 31, 2021 as well. Probably it is about vehicles that are currently eligible for credit, but not sure.
I saw an article that said $300k gross income limit.
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www.reuters.com
U.S. Senate Democratic deal would expand EV tax credits
A Senate Democratic deal includes a new $4,000 tax credit for used electric vehicles and other new tax credits and grants for automakers to retool factories to build greener cars.
www.reuters.com
thesmokingman
Active Member
Should be 420 joint.
Pricedm
Member
Why? Do people above a certain income/ cars above a certain price point have a lower carbon footprint?
Seems to me if the goals with electrification of the automobile/truck/semi fleet are (1) lower carbon footprint (2) increase EV adoption then neither income or car price are relevant to these goals.
Tam
Well-Known Member
Page 378 sounds like you can get the tax credit applied right at the time of sales rather than wait until next year's tax filing.
It used to be a non-refundable tax credit: If my tax liability is $5,000, I can zero that out, but I do not get $2,500 cash from the credit.
Now, it's refundable tax credit: If my tax liability is $5,000, I can zero that out, and I still get $2,500 cash from the credit.
That's why I can apply the total of $7,500 amount at the time of the sales and not wait until next year just to get a credit of $5,000 for my tax liability of $5,000.
That sounds like Tesla will advance the $7,500 first to credit us on the sales receipt. It then gets our signature, and they'll get reimbursed from the IRS.
It used to be a non-refundable tax credit: If my tax liability is $5,000, I can zero that out, but I do not get $2,500 cash from the credit.
Now, it's refundable tax credit: If my tax liability is $5,000, I can zero that out, and I still get $2,500 cash from the credit.
That's why I can apply the total of $7,500 amount at the time of the sales and not wait until next year just to get a credit of $5,000 for my tax liability of $5,000.
That sounds like Tesla will advance the $7,500 first to credit us on the sales receipt. It then gets our signature, and they'll get reimbursed from the IRS.
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High income earners don’t need the incentive, lower income earners do. So you will net more EV cars on the road and quicker overall adoption.
Tam
Well-Known Member
The above statement doesn't make sense.
Without an income cap, it's an inclusive system for both poor and rich people. The pool would be more extensive, the adoption rate would be higher.
The income cap is an exclusive system. It excludes the rich and only includes the poor. So the pool would be smaller, and the adoption rate would be lower.
It only makes sense to preserve the limited funding for the poor so that the rich won't be the first ones who would clean up all the funding and leave the poor nothing. But the adoption rate would be much slower by waiting for the poor to get enough money to buy an EV to access the fund.
So if a limited fund is announced with no income cap, the rich would compete and access the fund first before it runs out. That means the adoption rate would be faster.
In conclusion, the income cap does not make sense if you want quick adoption sense.
The income cap only makes sense to preserve the limited fund so the slower and poorer owners can eventually save enough money to access the fund at the expense of a slower rate of adoption.
You’re assuming the funding is infinite, it never is. Giving money back to the rich has little benefit and the wealthy (most anyway) will buy it anyways. So you’ll get more bang for your buck capping it. Basically reserving the finite fund for a group that would otherwise not purchase an EV.
It was capped before and it will be capped again. At what level, I don’t know.
Tam
Well-Known Member
Income cap: $150,000 single. $300,000 couple.
Currently, the $7,500 non-refundable tax credit has no income cap. Only the rich can get the full $7,500, but the poor who owes no tax will get zero out of $7,500.
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Tam
Well-Known Member
Correct. The poor can still save their money until they can buy an EV, and the fund would still be there.
Otherwise, the rich would swipe it out before the poor could get the fund.
Thus, Income Cap is about giving the poor a chance: The rich don't need it, and the poor need it.
Income Cap is not about a faster rate of adoption. It's the opposite.
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