Treasury Updates Vehicle Classification Standard for Clean Vehicle Tax Credits Under Inflation Reduction Act

[emoore]

Sounds good in theory, but how do you verify someone is going from ICE to EV? If you require a trade-in, what’s to stop someone from acquiring a junker for trade?

Good question. Maybe verification from currently registered car? This is why I don't make laws!

Sponsored

 

[Lmirafuente]

I think the spirit of the tax credit is to avoid buying/keeping an ICE vehicle. So if you are leaving Tesla to go to a Rivian, is better than going to another ICE vehicle. Just my two cents.

 

[emoore]

I think the spirit of the tax credit is to avoid buying/keeping an ICE vehicle. So if you are leaving Tesla to go to a Rivian, is better than going to another ICE vehicle. Just my two cents.

Not sure what the number is but I think there arent many
expel going from EV to ICE. Once you go EV you never go back.

 

[Lmirafuente]

Not sure what the number is but I think there arent many
expel going from EV to ICE. Once you go EV you never go back.

totally agree with you there!

 

[MidnightRivian]

The new 2023+ tax credit rules also won't help because the R1S and R1T will cost north of $80k.

You can easily build a Rivian for less than $80,000.

If you can afford the fancy add-on bits like quad motor, large battery pack , interior or wheels / paint.

Then you can afford to buy the Rivian without the tax credit.


If you’re worried about a budget, it’s easy to stay within budget and skip out on the upgrades.

you’ll be hard-pressed to find another AWD off-road 600HP SUV like the R1S for under $80,000 that qualifies for the tax credit today.

 

[Donald Stanfield]

People making $300,000 do not need tax payers to help subsidize their purchases.

They can pull themselves up by the bootstraps and earn the $7500 if that will make or break the sale.

Truly sounds like first world problems.

The system is working as intended.

Me keeping my own money sure the fuck isn’t a subsidy guy.

 

[Donald Stanfield]

but but but, damn it, I want my free money. Stop looking at how much I make, what loopholes I use or my shenanigans.

Get those damn tax payers who can barely afford groceries to subsidize my $80,000 car while I am rolling in the dough and laughing all the way to the bank thanks to asset inflation, PPP and tax payer handouts.

I get more in tax handout benefits, loopholes and government funding per person from all of America then I pay into the system for other to benefit from.

Greed is good.

Damn if that doesn't sound like most of the pissy people in this thread that didn't get the $7,500

What it sounds like is all the people who are talking about the income cap not bothering them are jealous little bitches to me.

Keeping MY OWN money is not a subsidy. If we are talking about who contributes more to society in the way of taxes let’s compare tax bills. Until yours matches mine say thank you and keep your opinion to yourself on exactly how much more I need to pay than you.

 

[Raffro]

I would happily support an unlimited income for the tax credit as long as the person is going from a gas car to an EV. I don't thing anyone should get a credit going from a Tesla to Rivian. The goal should be to get all ICE cars replaced with EVs, not to support going from an EV to EV. But that's just my opinion and I don't get to make that decision.

That's a scary goal without first updating the power source & transmission/distribution grid. I think having it as an option is good, but certainly not an all out goal. EVs are really not saving the planet, but they're a nice option to have if it works for the individual. Something certainly has to be done to fix the issues humans are causing to the environment but we need to be realistic in the approach. As for Govt subsidies , they're horseshit really - I'd rather those funds go into R&D to make clean sustainable energy.

 

[emoore]

That's a scary goal without first updating the power source & transmission/distribution grid. I think having it as an option is good, but certainly not an all out goal. EVs are really not saving the planet, but they're a nice option to have if it works for the individual. Something certainly has to be done to fix the issues humans are causing to the environment but we need to be realistic in the approach. As for Govt subsidies , they're horseshit really - I'd rather those funds go into R&D to make clean sustainable energy.

I agree with having more sustainable energy but disagree that we have time to do it. EVs might not be 100% clean but they are orders of magnitude better than ICE. And I do think the grid will adapt. It’s not like all of a sudden every ICE on earth is an EV, it will take time.

 

[Raffro]

I agree with having more sustainable energy but disagree that we have time to do it. EVs might not be 100% clean but they are orders of magnitude better than ICE. And I do think the grid will adapt. It’s not like all of a sudden every ICE on earth is an EV, it will take time.

It happened relatively quickly in Germany and Australia. I don't know what their uptake was in terms of switching from ICE to EV but they're back to burning coal.

They're not orders of magnitude cleaner - that's a misnomer. At least not for everyone.

 

[emoore]

It happened relatively quickly in Germany and Australia. I don't know what their uptake was in terms of switching from ICE to EV but they're back to burning coal.

They're not orders of magnitude cleaner - that's a misnomer. At least not for everyone.

Well I guess we will agree to disagree. Everything that can is moving to electric and that's a good thing.

 

[Franksmartin]

This is also what I previously thought, but the remarks of several CPAs and tax attorneys on a similar thread in the other Rivian forum disabused of me of the notion. My takeaway from their remarks is that the PBA is essentially worthless.

In terms of preserving your ability to take advantage of the pre-IRA EV tax credits that have no purchase limits, income thresholds and sourcing requirements, it would appear that what @SANZC02 posted earlier is largely correct. The deadline may be March rather than January however; that is when the IRS will issue its guidance relative to the new tax laws.

Do you have a link to that CPA thread?

 

[foxerson]

Good question. Maybe verification from currently registered car? This is why I don't make laws!

As I recall the "cash for clunkers" program back in 2009 addressed this by requiring proof of registration and insurance going back a couple of years. I recall having to go to DMV for a proof of registration report before trading in my '93 Grand Cherokee.

 

[quartz]

They're not orders of magnitude cleaner - that's a misnomer. At least not for everyone.

You’re right, it’s very nuanced—if you are in Wyoming and have very few renewable sources of electricity, an EV will have generated more emissions than ICE over its lifetime. In California, a Golf EV will have generated roughly half the amount of emissions compared to Golf ICE over 60k miles, with breakeven at around 18k miles. Remember, EV may require more emissions to produce than ICE, but over its lifetime, even in places like Germany that depend heavily on non-renewables, EVs win hands down. Larger EV vehicles and more renewable energy will indeed yield orders of magnitude less emissions over a lifetime compared to similar ICE vehicles.

Source reference: https://medium.com/@maximilian.zoller/ice-vehicles-vs-electric-vehicle-d16eb0d78487

 

[Gavinmcc]

Got my taxes back...fastest I ever have. Sent Friday electronically, accepted Saturday, refund in bank today. Sweet.

Yes, got the full 7500 no issues

Sponsored