Proposed US tax credits on EVs

[cfp]

Something for prospective Taycan customers to keep an eye on. Obviously the $80,000 limit would eliminate Taycan eligibility.

https://www.google.com/amp/s/electr...car-us-tax-credit-up-less-tesla-vehicles/amp/

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[ketjupiter]

Having just bought my ‘21 taycan 4s less than a week ago, I hope they wouldn’t make this retroactive. The tax credit was the one of the reasons I decided to trade my g wagon. Yes, I made out very well on my g wagon (sold it for more than u paid a year ago) and I am all for the environment, but I wouldn’t have done it without the credit.

 

[cfp]

Having just bought my ‘21 taycan 4s less than a week ago, I hope they wouldn’t make this retroactive. The tax credit was the one of the reasons I decided to trade my g wagon. Yes, I made out very well on my g wagon (sold it for more than u paid a year ago) and I am all for the environment, but I wouldn’t have done it without the credit.

I wouldn’t worry. Tax hikes or elimination of incentives are almost never retroactive.

 

[dickp]

I wouldn’t worry. Tax hikes or elimination of incentives are almost never retroactive.

Many of us are awaiting delivery in August, September, etc..
Hoping nothing passes before then.

 

[Kingske]

Something for prospective Taycan customers to keep an eye on. Obviously the $80,000 limit would eliminate Taycan eligibility.

https://www.google.com/amp/s/electr...car-us-tax-credit-up-less-tesla-vehicles/amp/

The union thing is a bit bizarre.

 

[cfp]

so much for my comment that tax law increases are never retroactive ?‍

 

[Fedex77]

Gotta love politicians pandering to unions.

 

[kort]

Gotta love politicians pandering to unions.

it's more than that, there is one party that despises the current tax credit system in place because they feel that only the "wealthy" can afford the vehicles that can get the tax credit and that the buyers have to have the level of income to apply the credit against.
so in their wisdom they want to make it so that the more expensive EVs cannot benefit from the tax credit.
the good news is that this is one item that probably would not survive the process.

 

[TYKHAAAN]

I don’t want to get into a political discussion of it, but I thought the point of the incentive was to encourage EVERYONE to buy EVs, whether a 20k or a 200k vehicle. This change seems to be saying that is not the point anymore. Other than limiting vehicle amount tho, I’m fine with the rest of this.

 

[kort]

I don’t want to get into a political discussion of it, but I thought the point of the incentive was to encourage EVERYONE to buy EVs, whether a 20k or a 200k vehicle. This change seems to be saying that is not the point anymore. Other than limiting vehicle amount tho, I’m fine with the rest of this.

what many people miss is that regardless of the price of the vehicle the purchaser has to show enough income to be able to take advantage of the tax CREDIT. since the recent changes in the tax laws many people are using the standard 24k deduction rather than doing an itemized return. if you do not do an itemized return and do not have the level of income to use the tax credit against, you cannot take full advantage of the credit. the one caveat to that statement is that if you lease the lessor can use the tax credit for lowering the cap cost of the car.

 

[dickp]

what many people miss is that regardless of the price of the vehicle the purchaser has to show enough income to be able to take advantage of the tax CREDIT. since the recent changes in the tax laws many people are using the standard 24k deduction rather than doing an itemized return. if you do not do an itemized return and do not have the level of income to use the tax credit against, you cannot take full advantage of the credit. the one caveat to that statement is that if you lease the lessor can use the tax credit for lowering the cap cost of the car.

Not itemizing deductions & taking the standard deduction has nothing to do with using the tax credit. You just have to have a total tax on line 24 of form 1040 exceeding the $7,500 credit. If total tax does not exceed the amount of the credit, you can only use the lesser amount for the tax credit.

 

[PT Addiction]

While on the subject of tax credits, some states also offer tax rebates. Here in CA, there is the Clean Fuel Reward (see screenshot below) and the Southern CA Edison EV Rebate Programs. Both add up to $2500. The Clean Fuel Reward Program is state-sponsored but through the dealership, meaning that if your dealer doesn't drag their feet to participate in the program, you can cash in on the rebate. Not the case for me. The dealer had not sign up yet and I missed out on the $1500 rebate. I did get the $1000 from SCE.

So be on the prowl for your state's rebate programs so you can take advantage of them.

 

[Lansford]

http://www.cleanfuelreward.com/

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