US EV tax credits

Mr.Smith

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This will be a huge loss for the Taycan and other Luxury EVs.

Cars Under $40k , can't claim the credits if you're making over $100k annually.
Not sure how it works for leases.

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Miwa

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I completely agree with it. Nobody buying a luxury $50k+ car should be getting a huge tax break. If the cut off is at 40k, then we’ll start getting a lot more under-40k BEVs.
 

Mike in CA

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Not just luxury BEV's. The $40K limit also shuts out vehicles like the VW id4 and Mustang Mach E, as well as almost certainly any model of EV pickup that is coming down the road. Unless you want something like a Nissan Leaf, you're going to be SOL.

The one good thing is that this is a non-biding resolution and much can still change. However, there is an element in American politics that is going to fight the expansion of electric vehicle use tooth and nail, both as a way to maintain the sway of their benefactors in the fossil fuel industry and to continue to foster a narrow minded ideology. Ridiculous.
 

chrisk

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I completely agree with it. Nobody buying a luxury $50k+ car should be getting a huge tax break. If the cut off is at 40k, then we’ll start getting a lot more under-40k BEVs.
But in that case more people will keep buying 4.0 V8 luxury cars ( like M5s and AMGs instead of a Taycan) or 3.0 cars (like M340i or S4 or C43 instead if Ford Mach-e or Tesla model 3) and then you don't save the environment which is the primary purpose of the credit.
Personally I would have probably bought an RS6 or AMG E63 or M5 if it wasn't for the various EV incentives.

The 40k cutoff will basically only help promote some cheap small size EVs like the Leaf and the Bolt.
 

Kakatus10

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This will be a huge loss for the Taycan and other Luxury EVs.

Cars Under $40k , can't claim the credits if you're making over $100k annually.
Not sure how it works for leases.

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Do you know when this would go into effect?
 

Miwa

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The 40k cutoff will basically only help promote some cheap small size EVs like the Leaf and the Bolt.
Which is all most people could afford anyway. We don't need to give big tax breaks to people buying expensive cars and trucks.

Regulations and economics are going to drive everything to EVs. The ball is already rolling, and the only things holding it back are a lack of cars on lots, and lack of infrastructure.

If Hyundai and Ford lots were full of all their announced vehicles, they'd probably sell them out still.
 

dflohr

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Good luck with that one. Unless EV credit mechanism is re-written, right now it is not refundable nor can it be carry forwarded. At under $100K income , you would likely have to plan way in advance and substantially under withold federal taxes to actually get to use the tax credit.
 

Jhenson29

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I completely agree with it. Nobody buying a luxury $50k+ car should be getting a huge tax break. If the cut off is at 40k, then we’ll start getting a lot more under-40k BEVs.
It’s not about saving people money. It’s about encouraging behavior. Which doesn’t stop at $100k/yr.
 

991carreradriver

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If the pseudo 3.5T budget reconciliation proposal, which is closer to 6T ever ever becomes law,, we will have far more tax worries than losing an EV tax credit.
 

W1NGE

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This will be a huge loss for the Taycan and other Luxury EVs.

Cars Under $40k , can't claim the credits if you're making over $100k annually.
Not sure how it works for leases.

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Welcome to our part of the world - penalise the 'wealthy' for the greater good and all of that!

At some point all of this has to disappear (and other perks) otherwise there will be no revenue stream for roads and highway maintenance (we don't pay annual road tax which is afforded to 100% EVs)...it's just a question of when.
 

schad

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I don't really support luxury purchases getting favorable tax treatment from the government. So while a hard cap is idiotic -- it needs to start phasing out at $40k and phase out completely at $75k -- the general idea is something I could get behind.

I'm reluctant to get into politics. But I feel that the best way to get durable and widespread support for government programs is to ensure that everyone benefits from it. If you have a program that half the country gets for free, and the other half doesn't get to use but does have to pay for, that's a recipe for political conflict. The best scenario is one where everyone pays at least something for the program, so everyone is invested (pretty literally) in its fiscal soundness; and where everyone gets at least some (meaningful) benefit from it, so everyone is interested in seeing it succeed in its goals.

For these specific numbers, if you make it so that only people who make under $100k can get the credit, you are realistically saying that the people who are bearing nearly the entire burden of the program's cost are the only ones who can't benefit from it.

So I don't support means-testing the EV credit.
 

Kingske

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I don't really support luxury purchases getting favorable tax treatment from the government. So while a hard cap is idiotic -- it needs to start phasing out at $40k and phase out completely at $75k -- the general idea is something I could get behind.

I'm reluctant to get into politics. But I feel that the best way to get durable and widespread support for government programs is to ensure that everyone benefits from it. If you have a program that half the country gets for free, and the other half doesn't get to use but does have to pay for, that's a recipe for political conflict. The best scenario is one where everyone pays at least something for the program, so everyone is invested (pretty literally) in its fiscal soundness; and where everyone gets at least some (meaningful) benefit from it, so everyone is interested in seeing it succeed in its goals.

For these specific numbers, if you make it so that only people who make under $100k can get the credit, you are realistically saying that the people who are bearing nearly the entire burden of the program's cost are the only ones who can't benefit from it.

So I don't support means-testing the EV credit.
Indeed. Phasing out the purchase incentives above a certain MSRP level makes sense (although $40K seems a bit tight in the current environment) while linking incentives to the buyer's income does not.
 

TYKHAAAN

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Phasing is a good idea, or increasing the price to say 60k for the tax break to stop. I dont think salary of a person should impact the tax break. The purpose I thought, was to encourage the adoption of cleaner technologies. Now, I do think luxury cars like ours, yeah, I’d agree it would not make much sense to qualify, but you want people who make 100k or more a year to have an incentive to adopt EVs as well. Bc depending on where you live, 100k is either a great/outstanding salary or a mediocre/sorta decent one. It should just depend on the price of the vehicle And 40k vehicle price is just too low at this time. Maybe in 10 years, when we (hopefully) have far more compelling options available under 40k, it can be dropped.
 
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