Tax Credit Proposal - House Bill 11/3

[Bobthebuilder352]

Depends on IRS interpretation. They don't make the batteries, but they do make the battery (assembled). Can go down a philosophical hole, as even the Asians don't make the lithium that goes in the batteries...

Treasury will rely upon the FTC which has very detailed rules on statements relating to where a product it made and/or assembled.

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[HikerTom]

The bill still needs to pass, which I don't think is going to happen. I'm assuming we'll have the regular $7500 credit.

I understand the proposed bill, but I’m not clear on the existing situation. Right now, do these income limits still apply, and is there a limit on what you spend on an ev to get up to the $7500 credit? I
understand there is currently a limit of 200,000 vehicles by a manufacturer that qualify. So, buying a Tesla won’t qualify for the tax credit under existing rules.

 

[DB-EV]

I understand the proposed bill, but I’m not clear on the existing situation. Right now, do these income limits still apply, and is there a limit on what you spend on an ev to get up to the $7500 credit? I
understand there is currently a limit of 200,000 vehicles by a manufacturer that qualify. So, buying a Tesla won’t qualify for the tax credit under existing rules.

Last I saw, the house bill (which passed the house only) has no income limit; some category of democratic senators want an income limit, and they need all 50 dems to pass if no republicans will vote for it in budget reconciliation.

Then, if it passes with an income limit, either the house would have to pass the same bill to send it to the pres or house and senate would have to agree on language and pass the same bill (probably harder to do).

 

[DB-EV]

Last I saw, the house bill (which passed the house only) has no income limit; some category of democratic senators want an income limit, and they need all 50 dems to pass if no republicans will vote for it in budget reconciliation.

Then, if it passes with an income limit, either the house would have to pass the same bill to send it to the pres or house and senate would have to agree on language and pass the same bill (probably harder to do).

And, of course one option is no change. In which case, 7500 credit with no limit.

 

[NashvilleR1S]

Does anyone know if this new bill has any changes to the current 30% tax credit for installing EV chargers? Debating whether or not I should have the wiring installed before year end.

 

[Autolycus]

Last I saw, the house bill (which passed the house only) has no income limit; some category of democratic senators want an income limit, and they need all 50 dems to pass if no republicans will vote for it in budget reconciliation.

Then, if it passes with an income limit, either the house would have to pass the same bill to send it to the pres or house and senate would have to agree on language and pass the same bill (probably harder to do).

The House passed a version with an income limit of 250k/500k.

 

[RivianXpress]

GM's Mary Barra Pressed To Acknowledge Tesla, Avoids And Refuses
Sure, the GM CEO doesn't want to give Tesla any credit, but a simple acknowledgement would have been better than nothing.

https://insideevs.com/features/551192/gm-mary-barra-tesla-talk/

 

[DB-EV]

The House passed a version with an income limit of 250k/500k.

oops, thanks Auto for the correction.

So then if the senate can't pass the same thing (or they can't pass what senate comes up with), we stay at status quo, 7500 limit with no income cap.

 

[ATX]

oops, thanks Auto for the correction.

So then if the senate can't pass the same thing (or they can't pass what senate comes up with), we stay at status quo, 7500 limit with no income cap.

Doesn’t the current status quo sunset this year? Wouldn’t they need to pass a bill that extends the current program of 7500 with no other restrictions except the 200k vehicle per manufacturer?

 

[DB-EV]

Ah, I don't know. I have been clearly wrong on this one.

Doesn’t the current status quo sunset this year? Wouldn’t they need to pass a bill that extends the current program of 7500 with no other restrictions except the 200k vehicle per manufacturer?

 

[lambo]

Doesn’t the current status quo sunset this year? Wouldn’t they need to pass a bill that extends the current program of 7500 with no other restrictions except the 200k vehicle per manufacturer?

The gov't website doesn't mention a sunset provision for the current rebate. It does show the phase out for GM and Tesla vehicles. The R1T is listed but not the R1S yet.

https://www.fueleconomy.gov/feg/taxevb.shtml

 

[timf]

The gov't website doesn't mention a sunset provision for the current rebate. It does show the phase out for GM and Tesla vehicles. The R1T is listed but not the R1S yet.

https://www.fueleconomy.gov/feg/taxevb.shtml

The current tax credit will remain in place indefinitely unless it is repealed or replaced by newer legislation. The only sunset provision is the 200,000 units sold per manufacturer. It's the charging station installation credit that requires renewal each year in order to stay in effect.

 

[Autolycus]

timf is correct. The current credit, which is found in 29 USC 30D, does not have a general expiration date. The expiration of the credit is handled per manufacturer once a manufacturer sells 200k vehicles which were eligible for the credit.

https://www.law.cornell.edu/uscode/text/26/30D

 

[Sgt Beavis]

Yea, basically we still get the $7500 tax credit if build back better doesn’t pass. It’s just that it’s still a tax credit. If you don’t owe $7500 in taxes, you’re not getting any benefit.

One upside to BBB not passing is that the $80K MSRP limit doesn’t exist. So you can equip your R1T or R1S as you wish. IF that’s the case, I may go for the Max Pack.

 

[Autolycus]

Yea, basically we still get the $7500 tax credit if build back better doesn’t pass. It’s just that it’s still a tax credit. If you don’t owe $7500 in taxes, you’re not getting any benefit.

One upside to BBB not passing is that the $80K MSRP limit doesn’t exist. So you can equip your R1T or R1S as you wish. IF that’s the case, I may go for the Max Pack.

Yep. No price limit in the status quo could potentially be a big help to a lot of people.

The ideal, IMO, would be a compromise with Manchin to change the $4500 to just final assembly in the US with no collective bargaining requirement and a generous interpretation of MSRP based on the VIN category (i.e. Explore or Adventure) with the battery pack size not described in the VIN. I guess we'll see over the next couple weeks whether this scenario is possible.

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