Potential future EV credit changes [NO POLITICS]

[shutterbug]

Also...don't count out the fact they may make it retroactive. Some of the versions floating(now) had language reffering to a sale date of on/after 1/1/2021...even though we are several months later..

Its all still up in the air, but you could be in line for bigger tax credit if Congress passes in 2022 and makes it retro to beginning of 2022.

How is retroactive thing going to work if they also make effective at point of sale?

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[DadBald]

This doesn't really pertain to this discussion much, but my reservation is way down the list. I was originally thinking 2024 for my delivery, but it may be 2023 based on some projections of Ford ramping up more quickly. So yeah, lots of time for it to happen while I wait. But... with ordering coming up, I'll just have that big question mark to make a decision around.

 

[Erik]

How is retroactive thing going to work if they also make effective at point of sale?

I also wonder how income and purchase price limits would apply retroactively. If you qualify according to the current rules, can you be retroactively disqualified?

It would be great if it was a discount at point of sale, but if they plan to have income limits then they won’t be able to do that.

 

[GarageMahal]

It would be great if it was a discount at point of sale, but if they plan to have income limits then they won’t be able to do that.

Sure they could, the IRS always gets its money in the end. The consumer would need to have the option to take the credit at point of sale or leave it until tax time. If someone took the credit and was not eligible they would need to pay it back at tax time.

Still, income limits do not seem like a valid condition as this should be about selling EVs, not about who is buying EVs.

 

[greenne]

How is retroactive thing going to work if they also make effective at point of sale?

The point of sale thing was always a gimmick of sorts (kind of like the COVID relief checks). On paper, its 100% a tax rebate..or refundable tax credit. What you'd do in a point of sale is effectively assign(or give) that rebate to the dealer to file at tax time. The dealer gives you the money as a rebate, but they don't get reimbursed until later.

You would always have the option of holding onto that credit..pay full price and settle with government next tax filing. Throtetically if it was retroa tive, you'd just get the credit at next tax filing...you'd request it on your return like you do now.

The key difference would be the proposed new credit would be refundable, whereas the current one is not. If you only owe $3000 in tax liability...you only get $3000 come tax time...you can't claim full credit.

 

[shutterbug]

The point of sale thing was always a gimmick of sorts (kind of like the COVID relief checks). On paper, its 100% a tax rebate..or refundable tax credit. What you'd do in a point of sale is effectively assign(or give) that rebate to the dealer to file at tax time. The dealer gives you the money as a rebate, but they don't get reimbursed until later.

Why would a dealer ever want to do that? Unless they were charging super high interest on this.

 

[astricklin]

Why would a dealer ever want to do that? Unless they were charging super high interest on this.

Don't most businesses file taxes quarterly?

 

[shutterbug]

Don't most businesses file taxes quarterly?

Yes, but I don't. So if the point of sale rebate is based on my income, they'd have to wait until I file.

 

[Roy2001]

How is retroactive thing going to work if they also make effective at point of sale?

The bill is to promote new EV sale, there is no point to make it retroactive.

 

[Blainestang]

The bill is to promote new EV sale, there is no point to make it retroactive.

One point would be to avoid killing sales while they talk about whether to make it law or not.

If they're talking about passing it in late 2022, and it's early '22, then people may hold off buying because they don't want to buy right before the credit becomes available. If there's wording in there that it's retroactive from the beginning of 2022, then people may buy anyway because they may be covered if it happens.

 

[Roy2001]

I also changed my mind and decided not to spend 70k+ on a Lariat. This is the 1st generation , and in 3 years 2nd generation would be out.

So I would spend just over 30k after tax credit get a Pro as well. I can upgrade to 2nd generation Lightning in 3-4 years, or I can keep it longer. If battery dies after 9-10 years, it is OK give the net cost. I only hope we can order Pro with extended range.

 

[metroshot]

I also changed my mind and decided not to spend 70k+ on a Lariat. This is the 1st generation , and in 3 years 2nd generation would be out.

So I would spend just over 30k after tax credit get a Pro as well. I can upgrade to 2nd generation Lightning in 3-4 years, or I can keep it longer. If battery dies after 9-10 years, it is OK give the net cost. I only hope we can order Pro with extended range.

1st gen, new model year, I would opt also for either the Pro loaded or XLT base.

As for the future federal incentives I am not relying the proposed credit to affect my purchase so I will go with the current in place $7500 tax credit.

Aren't you "counting your chickens before they hatch" to actually pay $30K for the Pro ?

 

[RavenYZF-R6]

1st gen, new model year, I would opt also for either the Pro loaded or XLT base.

As for the future federal incentives I am not relying the proposed credit to affect my purchase so I will go with the current in place $7500 tax credit.

Aren't you "counting your chickens before they hatch" to actually pay $30K for the Pro ?

My state has a 4K EV credit. So 11.5k off 40 is better than 30k. Probably what he is talking about.

 

[Roy2001]

1st gen, new model year, I would opt also for either the Pro loaded or XLT base.

As for the future federal incentives I am not relying the proposed credit to affect my purchase so I will go with the current in place $7500 tax credit.

Aren't you "counting your chickens before they hatch" to actually pay $30K for the Pro ?

Right now California has extra $1500 so it is $9000 now which is good enough for me.

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