Tax Credit Changes in new bill [LOCKED DUE TO POLITICS & ARGUING]

[astonius]

Speaking as a CPA, income is a terrible measure for incentives but an asset test is way too hard to implement so it’s the only “easy” way to do this. We have clients with tens of millions or hundreds of millions of assets whose income fluctuates year to year and there are years where they may have losses due to capital/equipment investments and bonus depreciation.

Which is exactly why income caps are dumb and why the current credit makes more sense than the one proposed.

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[McMoo]

Here’s a good summary of this mess.

 

[RivianXpress]

Can someone claim more than one credit per year if they buy multiple EV’s?

 

[R1Sky Business]

Does this basically destroy the Rivian + Xpel partnership? Or would the PPF not count in the MSRP?

America is truck and SUV heavy, those are expensive in EV form for the immediate future...They need to realize this and either remove cap or faze it in over 3-5 years.

Thought - wonder if companies look at the Vinfast battery subscription as a way around the MSRP cap?

If coming from factory...added to MSRP

 

[CommodoreAmiga]

Does this affect people who already took delivery? In other words, is it retroactive for the tax year?

 

[elektrode]

Shared sacrifice for climate change legislation or shared global suicide.

To give you another perspective, I’d rather lose my tax credit than have one Senator screw up climate change legislation.

In other words: "It DOES/MIGHT affect me negatively, BUT it's STILL great!"

Note: all based on the potentially futile hope that we have a chance to make changes to the climate

"It doesn't affect me negatively, so it's great!"

 

[astonius]

Shared sacrifice for climate change legislation or shared global suicide.

To give you another perspective, I’d rather lose my tax credit than have one Senator screw up climate change legislation.

In other words: "It DOES/MIGHT affect me negatively, BUT it's STILL great!"

Note: all based on the potentially futile hope than we have a chance to make changes to the climate

So you think the fate of the planet hinges on an EV incentive bill?

 

[Sgt Beavis]

If coming from factory...added to MSRP

Agreed. I looked all over for a federal definition of MSRP. It seems that it’s mostly the states that do this. The Feds just define what is on the sticker. But that’s just based on what I’ve found so far. If it’s on the sticker as a factory option, it’s in the MSRP. If it’s dealer or consumer installed item, then it’s not part of the MSRP.

 

[TXR1S]

Anyone have any idea on the sources of the battery minerals & components? Are R1 vehicles even eligible for $3750 or $7500?

 

[Sgt Beavis]

Does this affect people who already took delivery? In other words, is it retroactive for the tax year?

Credit applies for vehicles purchased beginning January 1, 2023. (Page 386, line 1).

 

[Dark-Fx]

So higher interest rates.
Most likely no tax deduction.
The Rivian is looking better and better by the minute
Also the definition of MSRP is not clear. Mine will be over 80k.

Not sure if it's the way they will look at it, but the MSRP listed on my truck's title is $67,500. All the extras I ordered with the truck weren't included there.

 

[taylor710ce]

Speaking as a CPA, income is a terrible measure for incentives but an asset test is way too hard to implement so it’s the only “easy” way to do this. We have clients with tens of millions or hundreds of millions of assets whose income fluctuates year to year and there are years where they may have losses due to capital/equipment investments and bonus depreciation.

@McMoo, hopefully after daycare they'll be less expenditures! And gosh, I would have loved to have seen a gradient of incentives based on income instead of all or nothing.

 

[elektrode]

I don’t find the compulsion to think in such absolute terms in order to make forward progress. (Or even to score points on the internet)

~”Let not perfection be the enemy of good.”

So you think the fate of the planet hinges on an EV incentive bill?

 

[MilliM]

I guess a lot of people here will be kissing that tax credit goodbye in 2023. Glad I received my Lightning here in 2022 as I think the current rules apply.

On one hand it's a bummer that the income limit is where it is, but on the other hand if you're in the higher income brackets I don't think the tax credit will substantially change a purchase decision, whereas it will matter a lot at the lower incomes. The one caveat is I know that all of us who had been expecting it sort of baked it in mentally, so letting it go may be hard.

 

[Joel]

Absolutely not. It’s not perfect but it’s still a step in the right direction.

so a step in the right direction is spending money the USA doesn’t have and paying more than 1 billion dollars a day in interest alone.

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