$12,500 tax credit possible?

[F150ROD]

Just not proud of taking welfare from taxpayers, especially when I can afford it.
That is the gripe about the Tesla handouts, do people who can afford $150k cars deserve a taxpayer funded handout?

Aren’t they also Taxpayers?

But I agree that the State incentives have made more sense than Fed

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[BigDill]

Just not proud of taking welfare from taxpayers, especially when I can afford it.
That is the gripe about the Tesla handouts, do people who can afford $150k cars deserve a taxpayer funded handout?

I don’t want to belabor this, but I am so confused by this statement. You get the tax credit (theoretically) just because you have the tax liability to be offset by the $7,500 credit. If you are not a net tax payer, you do not get the credit. This is really no different from saying that if you sell an asset within a year you get taxes as ordinary income vs selling the asset after holding it for a year and taking the 15% cap gain rate. Or being able to take an education credit, or a SALT credit. Just like most other credits, there is no requirement for you to claim the credit.

 

[FatmanOSU]

We just passed an EV bill here in OK. Says we have great EV charging places here. When I look at share plug I am not seeing it.
https://www.thecentersquare.com/okl...cle_a75cdd44-a925-11eb-9aa9-c3dd16313e6f.html

 

[Fastnf]

We just passed an EV bill here in OK. Says we have great EV charging places here. When I look at share plug I am not seeing it.
https://www.thecentersquare.com/okl...cle_a75cdd44-a925-11eb-9aa9-c3dd16313e6f.html

There are quite a few DCFC showing on PlugShare.com in Oklahoma. If your new to PlugShare make sure you have the right filters selected. Plug type should be CCS, also turn on fee required or you will only see free stations. I just checked and saw about 120 DCFC locations in Ok.

 

[FatmanOSU]

There are quite a few DCFC showing on PlugShare.com in Oklahoma. If your new to PlugShare make sure you have the right filters selected. Plug type should be CCS, also turn on fee required or you will only see free stations. I just checked and saw about 120 DCFC locations in Ok.

It is decent, but not every 50 miles on hwys. North I-35 needs more. East I-40 and Hwy 412. Those are all routes that I use and charges are not quite there.

 

[Smokewagun]

So these tax credits go against your tax liabilities. So, if you apply for the $7500 tax credit in the year you bought the vehicle, but you’ve been a good citizen and had deductions taken each paycheck and owe nothing at tax time, you get nothing. Zero, zip, nada.
So, what are we to do? Stop witholdings? It’s not like uncle Sam’s gonna write us a check. Similarly, if our outstanding outstanding liability is $3000 at tax time, meaning we’ve withheld but still owe $3000, then we only get $3000 of the $7500. Is this correct? That’s how it read on the IRS website.

 

[Blainestang]

So these tax credits go against your tax liabilities. So, if you apply for the $7500 tax credit in the year you bought the vehicle, but you’ve been a good citizen and had deductions taken each paycheck and owe nothing at tax time, you get nothing. Zero, zip, nada.
So, what are we to do? Stop witholdings? It’s not like uncle Sam’s gonna write us a check. Similarly, if our outstanding outstanding liability is $3000 at tax time, meaning we’ve withheld but still owe $3000, then we only get $3000 of the $7500. Is this correct? That’s how it read on the IRS website.

This is not how it works.

The limiting amount is your total tax liability for the year, not what you owe at the end of the year after withholdings.

For example, if you paid in nothing all year, what you owe at the end of the year is your total tax liability and THAT is what you go by.

If your total tax liability is $10,000, but you've paid in $10,000 over the course of the year, what you "owe" at the end of the year is $0, right?

But if you get the tax credit, they'll give you BACK $7,500 because you effectively overpaid by $7,500.

On the other hand, if your total tax liability is $5,000, and you've paid in $5,000 over the course of the year, what you owe at the end is $0 (not including the tax credit).

This time, though, they'll only give you a check back for $5000 because they won't give you back MORE than your total tax liability.

Basically, the amount of taxes you pay for the year cannot be net of $0, but it cannot be LESS than $0.

Hopefully that made sense.

 

[Brian Head Yankee]

It carries over to your next tax year if you can’t use it all the first year. I can’t think of a scenario where a person can afford a $60k EV that can’t use the write off over a tax year or two. It has been mentioned a couple of times but the new Biden plan would make it a refund check, irrelevant of your tax burden.

 

[Blainestang]

It carries over to your next tax year if you can’t use it all the first year. I can’t think of a scenario where a person can afford a $60k EV that can’t use the write off over a tax year or two. It has been mentioned a couple of times but the new Biden plan would make it a refund check, irrelevant of your tax burden.

Just to clarify, the current credit does not carry over. If you can't take the whole thing the first year, it's gone.

But you're right, the new plan (which hasn't passed yet) would be that it's a refundable credit, so you get the whole amount/benefit regardless of total tax liability.

 

[tkeru408]

Originally asked this question in another thread where tax credits came up, but it's more relevant to ask in this thread so moving it to here...

Under the new bill (as the draft is currently written), would vehicles over $80K retain the $7.5K credit or would the credit disappear entirely? Seems there would be significant pushback from vehicle manufacturers (and their lobbyists) if it went away entirely for vehicles over $80K. That would impact all Lightning Platinums and some Lightning Lariats. It might also lead to a lot of vehicles being sold for $79,995!

 

[Brian Head Yankee]

We have to wait for the bill to pass. We have plenty of time...

 

[Roy2001]

Under the new bill (as the draft is currently written), would vehicles over $80K retain the $7.5K credit or would the credit disappear entirely? Seems there would be significant pushback from vehicle manufacturers (and their lobbyists) if it went away entirely for vehicles over $80K. That would impact all Lightning Platinums and some Lightning Lariats. It might also lead to a lot of vehicles being sold for $79,995!

I think new bill will replace the old one.

 

[sotek2345]

We have to wait for the bill to pass. We have plenty of time...

Agreed - I don't want to take this thread political, but given the current situation in D.C., I wouldn't expect any significant legislation to be passed in the next few years.

 

[Roy2001]

Agreed - I don't want to take this thread political, but given the current situation in D.C., I wouldn't expect any significant legislation to be passed in the next few years.

If the bill just requires 51 vote in senate, then it would pass.

 

[sotek2345]

If the bill just requires 51 vote in senate, then it would pass.

Agreed - but the filibuster isn't going anywhere anytime soon

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