EV tax requirements possibly delayed

[jimfigler]

Bill in Congress would delay the new restrictions on what cars qualify for EV tax credits (msn.com)

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[Nick Gerteis]

Great! The more EVs the better.

 

[TaxmanHog]

Bill will be dead within 90 days .when the 118th congress is seated and no co-sponsors.

https://www.congress.gov/bill/117th-congress/senate-bill/5020
https://www.govtrack.us/congress/bills/117/s5020#

 

[Pioneer74]

It took Manchin to get the previous bill passed with budget resolution. You won't even get his support on this bill because of what Biden has been saying about coal, and you will need 60 votes to pass in the senate.

This bill is DOA.

 

[Amps]

when the 118th congress is seated

For the 118th, I expect HR 1 will be introduced to repeal the Inflation Reduction Act.

 

[Pioneer74]

For the 118th, I expect HR 1 will be introduced to repeal the Inflation Reduction Act.

HR 1 will be about illegal immigration. Kevin McCarthy already announced it.

"The first thing you'll see is a bill to control the border first," McCarthy told CNN, when asked for specifics about his party's immigration plans.

https://www.google.com/amp/s/amp.cn...mccarthy-interview-border-security/index.html

 

[Maquis]

“This first thing you’ll see is a bill to control the border first.”

From the department of redundancy department!

 

[kkgg]

So what it means if the bill is delayed. The existing tax conditions will continue (only first 200k cars per manufacturer are eligible for 7500) ?

 

[GrokTime]

So what it means if the bill is delayed. The existing tax conditions will continue (only first 200k cars per manufacturer are eligible for 7500) ?

The the IRA was passed and changes the prior law. What is being discussed here is a a theoretical change to the IRA.

 

[TaxmanHog]

Related bills h.r. 9289
https://www.congress.gov/bill/117th-congress/house-bill/9289

Shown Here: Introduced in House (11/10/2022)

117th CONGRESS 2d Session

H. R. 9289
To amend the Internal Revenue Code of 1986 to temporarily suspend application of the requirement that final assembly of vehicles occur within North America for purposes of the clean vehicle credit, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
November 10, 2022
Ms. Sewell (for herself, Mr. Cleaver, and Mr. Swalwell) introduced the following bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to temporarily suspend application of the requirement that final assembly of vehicles occur within North America for purposes of the clean vehicle credit, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “Affordable Electric Vehicles for America Act of 2022”.
SEC. 2. ADJUSTMENT OF CERTAIN REQUIREMENTS FOR CLEAN VEHICLE CREDIT.

(a) Final Assembly.—Subparagraph (G) of section 30D(d)(1) of the Internal Revenue Code of 1986, as added by section 13401(b) of Public Law 117–169, is amended by inserting “in the case of any motor vehicle sold after December 31, 2025,” before “the final assembly”.
(b) Critical Minerals And Battery Components.—Section 30D of the Internal Revenue Code of 1986, as amended by section 13401 of Public Law 117–169, is amended—
(1) in subsection (d)(7)—
(A) in subparagraph (A), by striking “December 31, 2024” and inserting “December 31, 2025”, and
(B) in subparagraph (B), by striking “December 31, 2023” and inserting “December 31, 2024”, and
(2) in subsection (e)—
(A) in paragraph (1)(B)—
(i) in clause (i), by striking “after the date on which the proposed guidance described in paragraph (3)(B) is issued by the Secretary and before January 1, 2024” and inserting “during calendar year 2026”,
(ii) in clause (ii), by striking “2024” and inserting “2027”,
(iii) in clause (iii), by striking “2025” and inserting “2028”,
(iv) in clause (iv), by striking “2026” and inserting “2029”, and
(v) in clause (v), by striking “December 31, 2026” and inserting “December 31, 2029”,
(B) in paragraph (2)(B)—
(i) in clause (i), by striking “after the date on which the proposed guidance described in paragraph (3)(B) is issued by the Secretary and before January 1, 2024” and inserting “during calendar year 2026”,
(ii) in clause (ii), by striking “2024 or 2025” and inserting “2027 or 2028”,
(iii) in clause (iii), by striking “2026” and inserting “2029”,
(iv) in clause (iv), by striking “2027” and inserting “2030”,
(v) in clause (v), by striking “2028” and inserting “2031”, and
(vi) in clause (vi), by striking “December 31, 2028” and inserting “December 31, 2031”, and
(C) in paragraph (3)(B), by striking “December 31, 2022” and inserting “December 31, 2025”.
(c) Effective Date.—The amendments made by this section shall take effect as if included in the enactment of section 13401 of Public Law 117–169.

 

[lancersrock]

@TaxmanHog Whats your opinion on what MSRP they will use? If they use base then everything except the platinum would qualify, I'm sure us 23 ER people are praying this is the case lol.

 

[TaxmanHog]

@TaxmanHog Whats your opinion on what MSRP they will use? If they use base then everything except the platinum would qualify, I'm sure us 23 ER people are praying this is the case lol.

IMHO, it will be the window sticker price of the trim level plus options, so this credit is only going to work for PRO-SR, XLT-SR and Lariat-SR trim's, while the ER's trims will not be qualified, until Ford allows a PRO-ER order to retail consumers. But this is only my pragmatic opinion, still not sure if the REV/PROC's will be detailed enough to definitively answer the concern

 

[TaxmanHog]

Another cosponsor signed on last week, Farley meet with Potus-46 and the CR for continuing government operations runs out on 12/16/2022, all pinch points for possible acceleration of this or other mitigating legislation before the close of the calendar year.

https://www.congress.gov/bill/117th-congress/house-bill/9289/cosponsors

Kiplinger is a respected tax news reporting service, they allude to the possibility the old credits continue going into 2023, but I'm not certain about these statements, as nothing has been said by IRS about it in the public news releases, they conflate statements about the 8/16 event that's focused on non-north American assembly and all other vehicles, but imagine if there were legislation which said in essence, 'complete the transaction by x date, and file with on time return (4/15/23) or by extension (10/15/23) to claim credit if the truck is in fact delivered/possession by the same deadline, early filers could amend the return later but not past the firm filing deadline(s)' that might work, but there is nothing to back up such a concept.

This would be similar to how deductions for the depositing of funds to an IRA (retirement plan) are allowed past the close of the calendar tax year [12/31/xx] and up to the filing deadline.

AGAIN, I see no hard legislation, or interim guidance that allows the old EV tax Credit to go past close of the tax year (12/31/2022) .... We'll see how hard Farley & Levin twisted #46 arm last week!

For now I stand by my prior comments that 12/31/2022 possession is the rule to live by
https://www.irs.gov/credits-deductions/individuals/plug-in-electric-drive-vehicle-credit-section-30d

 

[shocker]

IMO, won't be enacted this Congress or next Congress. Already talking about a trillion dollar deficit and EVs don't have any demand problems.

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