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

[TexasBob]

Doesn’t negatively impact the vast majority of people. Add to that the fact that it’ll now be a point of sale rebate and it’s a big win for the vast majority of people. So yea, I’m totally good with it.

Point of Sale rebate is very specifically defined so that only licensed auto dealers are eligible. Rivian and Tesla et. al. are not going to be able to offer, at least as I read it.

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[TexasBob]

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

Yes, under the existing law for certain. Did not see anything that would change that in new draft.

 

[astonius]

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.”

As long as you understand the people selling you this bill of goods don’t believe it.

 

[mabowden]

$300,000 married or $150,000 single. You can use a look back to the prior tax year for income purposes to qualify. Suv and truck msrp cap is $80,000. It’s $55,000 for cars.

B) THRESHOLD AMOUNT.—For purposes of subparagraph (A)(ii), the threshold amount shall be—
‘‘(i) in the case of a joint return or a surviving spouse (as defined in section 2(a)), $300,000,
‘‘(ii) in the case of a head of house- hold (as defined in section 2(b)), $225,000, and
‘‘(iii) in the case of a taxpayer not de- scribed in clause (i) or (ii), $150,000.

Oh boy. I'll barely skate by.

I'm not complaining, but I had factored this in to my buying decision so it would really suck if it's revoked and I don't see a truck before 2023 (which would be very optimistic).

Ocean coast is a hill I've been willing to die on, but I might change that mindset if its worth $7500 to me.

$300,000 married may seem like a lot, but net income in SoCal (and other places) you can barely afford a single family residence unless you bought ages ago.

 

[ztron]

Point of Sale rebate is very specifically defined so that only licensed auto dealers are eligible. Rivian and Tesla et. al. are not going to be able to offer, at least as I read it.

I am sure Ford will be unhappy with this as well https://www.freep.com/story/money/c...online-sales-non-negotiable-price/7468899001/

 

[SANZC02]

My concern is puts more money in Mfg and dealers, they will adjust prices, especially for used vehicles to maximize the credit but will not really benefit the consumer.

The other concern is how much money without unit limits we will burn through with the push to EVs. All of the manufacturers are already ramping up their EV plans between now and 2032 even without the credit, that is million and millions of $7500 dollar credits going to these manufacturers. Tesla has already shown they keep the prices high to get the bulk of the credit designed to benefit the consumer. Just look at the price drop Tesla had when they phased out of the previous tax credit.

When it comes to income limits people with money will just delay their draws until January to stay under the limit.

I just do not see how this will really benefit lower income households and looking around at all of the EVs coming to the market in the coming months not sure I see the need. It would make much more sense to use this money to incentivize companies to build up the charging infrastructures and regional power grids.

 

[Gsxr150]

Guys, has this bill passed or just speculation at this point??

 

[TXR1S]

Guys, has this bill passed or just speculation at this point??

Speculation, but 65% chance of passage per Predictit.

 

[SANZC02]

Guys, has this bill passed or just speculation at this point??

Not passed just a deal made with the democrat that was that was holding out so they can try to ram it through before fall break and November elections. Still has to have things finalized and go through the review boards, nothing set in concrete at this point.

 

[electruck]

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

With diverse supply chains, we won't know until either Rivian or the government indicate eligibility. SDI does source much lithium and nickel from Australia and some lithium from Chile so I suspect there's a good chance of meeting the 40 and 50% requirements. That's assuming the bill only cares about where the mines are. If "where the minerals come from" also includes the refining, I think chances go way down as I believe China still handles much of the refining. Be curious to hear other's thoughts on this as well.

 

[shrink]

Oh boy. I'll barely skate by.

I'm not complaining, but I had factored this in to my buying decision so it would really suck if it's revoked and I don't see a truck before 2023 (which would be very optimistic).

Ocean coast is a hill I've been willing to die on, but I might change that mindset if its worth $7500 to me.

$300,000 married may seem like a lot, but net income in SoCal (and other places) you can barely afford a single family residence unless you bought ages ago.

It is adjusted gross income. Hopefully deductions can help get you under that threshold. I'm in similar boat.

 

[TXR1S]

With diverse supply chains, we won't know until either Rivian or the government indicate eligibility. SDI does source much lithium and nickel from Australia and some lithium from Chile so I suspect there's a good chance of meeting the 40 and 50% requirements. That's assuming the bill only cares about where the mines are. If "where the minerals come from" also includes the refining, I think chances go way down as I believe China still handles much of the refining. Be curious to hear other's thoughts on this as well.

Thank you.

Imagine being a mine owner or refiner in the US or a free trade country today, talk about a windfall.

 

[shrink]

With diverse supply chains, we won't know until either Rivian or the government indicate eligibility.

Yeah, I'm curious about this, too. Noticed the battery material requirements change in later years as well. I think what you wrote above is exactly what we'll all be waiting for.

 

[MilliM]

When it comes to income limits people with money will just delay their draws until January to stay under the limit.

W2 tax donkeys don't have that option...we just need to suck it up and pay the man.

 

[TXR1S]

One thing that is clear is that none of this matters if we have any kind of written purchase agreement from Rivian.

This would need to be in place before signature of the bill by Biden.

I really hope Rivian is working on loading a PBA into the website for every preorder holder ASAP.

There is literally no downside for Rivian to do this.

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