Tax Credit Proposal - House Bill 11/3

[sub]

This tax credit is totally unfair....To 100% solar powered EVs.

No plug = no credit. A 100% solar powered BEV do not qualify.

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[Blur1t]

Haven't had chance to read it but does anyone know if the credit is available if I title the truck in my small business' name? Does that matter at all?

I have not read it all the way, but most likely you will just 179 it and depreciate it for a business in which case you most likely will not be able to double dip. I could be wrong, God knows they threw some Covid curve balls last year that knocked my socks off.

 

[Blur1t]

This might seem like a basic question, but are these limits for "taxable income" after all applicable deductions, or gross income before any deductions?

AGI is adjusted gross income

 

[Vegeta]

O

Income limits (does phase out):
500k joint
250k single

MSRP limits:
80k truck
80k suv

Rivian credit: $7500

https://rules.house.gov/sites/democrats.rules.house.gov/files/BILLS-117HR5376RH-RCP117-18.pdf

Page 1480 (or search “greening”)

Is this the one for 12.5k?

 

[SeaGeo]

I have not read it all the way, but most likely you will just 179 it and depreciate it for a business in which case you most likely will not be able to double dip. I could be wrong, God knows they threw some Covid curve balls last year that knocked my socks off.

Pretty sure I saw something explicitly stating you can't double dip when I skimmed it today.

 

[fromSf]

"shall not exceed 1 per taxpayer per taxable year" ----

If filing joint does that mean we can take two credits in a year?

 

[pc500]

What if two people are on a vehicle title, but are not on the same tax return, and one qualifies for the credit and one doesn't?

 

[Sgt Beavis]

Whew, glad I file jointly...

Here's what my new build will most likely be. If you see $0 on an option, it's because there is no cost or I removed it.

 

[GaryL]

Pretty sure I saw something explicitly stating you can't double dip when I skimmed it today.

There is some discussion on Reddit from 2016 about the EV credit+ Sec 179 issue which leads to form 8936. Its seems to indicate if it is a 4 wheeled vehicle (not a cycle) it can be done. One thing I did run across that the 179 deduction is capped at 26K for Pickups with less than a 6 foot bed. Didn't know that.

 

[McMoo]

There is some discussion on Reddit from 2016 about the EV credit+ Sec 179 issue which leads to form 8936. Its seems to indicate if it is a 4 wheeled vehicle (not a cycle) it can be done. One thing I did run across that the 179 deduction is capped at 26K for Pickups with less than a 6 foot bed. Didn't know that.

Section 179 shouldn’t be necessary since there is 100% bonus depreciation through 2022. The GOP/Trump tax cuts made Section 179 almost irrelevant except in a few specific cases.

 

[Blur1t]

What if two people are on a vehicle title, but are not on the same tax return, and one qualifies for the credit and one doesn't?

A lot of tax credits disappear for those that file separately, have to wait on the exact ruling from the IRS on that. I would think though that the one that qualifies would be the one that should. IMHO

 

[Blur1t]

Section 179 shouldn’t be necessary since there is 100% bonus depreciation through 2022. The GOP/Trump tax cuts made Section 179 almost irrelevant except in a few specific cases.

One does not have to take the bonus depreciation so no it’s not necessary but unless it’s over one million and thankfully it is not one could take the 179, but the spread over time for the depreciation is usually better it gives you something for several years not just all at once, of course it always depends on your exact situation though.

 

[GaryL]

Section 179 shouldn’t be necessary since there is 100% bonus depreciation through 2022. The GOP/Trump tax cuts made Section 179 almost irrelevant except in a few specific cases.

I am definitely not a tax pro so I suggest people consult a tav pro about that.

 

[McMoo]

I am definitely not a tax pro so I suggest people consult a tav pro about that.

yes, I was just pointing out there is not a 25k cap on the deduction because bonus depreciation can be taken instead of section 179 if > 50% business use.

 

[Smithery]

This tax credit is totally unfair....To 100% solar powered EVs.

No plug = no credit. A 100% solar powered BEV do not qualify.

Can't tell if you're joking, trolling, or ... just extremely misinformed.

But:
- There's no mainstream EV with meaningful solar built-in
- Because the physics of current battery/motor/solar inefficiencies means it's literally impossible
- And even if it were technically possible, it would be malpractice to sell such a car without an onboard charger, lest you never ever run out of juice at night, or never ever want to quickly shift rooftop solar at home into your car batteries.

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