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> a stealth bailout of the domestic auto industry with a $7500 tax credit on cars that have just $750 worth of batteries in them. As it currently stands the $7

> a stealth bailout of the domestic auto industry with a $7500 tax credit on cars that have just $750 worth of batteries in them. As it currently stands the $7500 limit is only for the first 200,000 cars. Tesla benefited a lot from it and exhausted its limit back in 2018. https://www.reuters.com/article/us-tesla-tax-credit/tesla-hits-200000-cars-meaning-lower-tax-credit-for-buyers-idUSKBN1K222F https://www.reuters.com/article/us-tesla-tax-credit/tesla-hi...

duped 4y ago
I think GP is referring to the Climate Bill being debated in Congress this month where the 200k limit would be lifted and an additional $4k tax credit given to used EV purchases.
ssharp 4y ago
The bill the commenter was mentioning is currently in the Senate and hasn't been voted on yet. It would bring back the $7,500 credit for any EV that is built in the U.S. and removes the 200,000 limit. The bill also changes the mechanics of the credit so that it is applied immediately off the purchase price rather than a tax credit whenever you file. It also allows for up to a $4,000 credit on used EV's.
- victor106 4y ago
  Got it, Is there anything in the bill that excludes Tesla from access to those credits?
  - enragedcacti 4y ago
    Here is the summarized set of rules: Federal tax credit for EVs will remain at $7,500 Tax credit cap for automakers after they hit 200,000 EVs sold is eliminated, making GM, Tesla and Toyota once again eligible The language in the bill indicates that the tax credit would be implemented at the point of sale instead of on taxes at the end of the fiscal year In order to get the full credit, the EV must be assembled in North America, the majority of battery components need to come from North America, and contain a certain percentage of minerals from countries with free trade agreements with the US Includes a new federal tax credit of $4,000 for used EVs Includes zero-emission vans, SUVs, and trucks with MSRPs up to $80,000 Electric sedans priced up to $55,000 MSRP also qualify The full electric vehicle tax credit will be available to individuals reporting adjusted gross incomes of $150,000 or less, or $300,000 for joint filers https://electrek.co/2022/07/29/which-electric-vehicles-still-qualify-for-us-federal-tax-credit/#h-status-of-the-12-500-federal-tax-credit-for-evs https://electrek.co/2022/07/29/which-electric-vehicles-still...
    - victor106 4y ago
      Thanks you, Those rules seem fair enough.
    - powerhour 4y ago
      Not really a fan of having the tax break at point of sale. I don't want dealers knowing my income.
    - Panzer04 4y ago
      What a way to subsidize the middle and upper class :/
- kbenson 4y ago
  > $7,500 credit for any EV that is built in the U.S > It also allows for up to a $4,000 credit on used EV's. I can't wait for the eventual headline about how dealerships would sell cars to themselves so they could resell them and pocket an extra $4k. I have no doubt that story will happen and come out, I'm just wondering whether it will be during or after it's common, and how widespread the abuse will be, given that even if there are provisions to prevent that, some enterprising fraudsters will find a way.
  - mywittyname 4y ago
    Dealerships are collectively, very powerful groups. This would not the be first time they've convinced Congress to dump money into their pockets with such schemes. CARS Act comes to mind. The outrage will come, but dealerships will have bled every dollar they can before anything is done. And the same people voting for the bill will come out next year campaigning against such corruption and stupidity by the government.

duped 4y ago

I think GP is referring to the Climate Bill being debated in Congress this month where the 200k limit would be lifted and an additional $4k tax credit given to used EV purchases.

ssharp 4y ago

The bill the commenter was mentioning is currently in the Senate and hasn't been voted on yet. It would bring back the $7,500 credit for any EV that is built in the U.S. and removes the 200,000 limit. The bill also changes the mechanics of the credit so that it is applied immediately off the purchase price rather than a tax credit whenever you file. It also allows for up to a $4,000 credit on used EV's.

victor106 4y ago
Got it, Is there anything in the bill that excludes Tesla from access to those credits?
- enragedcacti 4y ago
  Here is the summarized set of rules: Federal tax credit for EVs will remain at $7,500 Tax credit cap for automakers after they hit 200,000 EVs sold is eliminated, making GM, Tesla and Toyota once again eligible The language in the bill indicates that the tax credit would be implemented at the point of sale instead of on taxes at the end of the fiscal year In order to get the full credit, the EV must be assembled in North America, the majority of battery components need to come from North America, and contain a certain percentage of minerals from countries with free trade agreements with the US Includes a new federal tax credit of $4,000 for used EVs Includes zero-emission vans, SUVs, and trucks with MSRPs up to $80,000 Electric sedans priced up to $55,000 MSRP also qualify The full electric vehicle tax credit will be available to individuals reporting adjusted gross incomes of $150,000 or less, or $300,000 for joint filers https://electrek.co/2022/07/29/which-electric-vehicles-still-qualify-for-us-federal-tax-credit/#h-status-of-the-12-500-federal-tax-credit-for-evs https://electrek.co/2022/07/29/which-electric-vehicles-still...
  - victor106 4y ago
    Thanks you, Those rules seem fair enough.
  - powerhour 4y ago
    Not really a fan of having the tax break at point of sale. I don't want dealers knowing my income.
  - Panzer04 4y ago
    What a way to subsidize the middle and upper class :/
kbenson 4y ago
> $7,500 credit for any EV that is built in the U.S > It also allows for up to a $4,000 credit on used EV's. I can't wait for the eventual headline about how dealerships would sell cars to themselves so they could resell them and pocket an extra $4k. I have no doubt that story will happen and come out, I'm just wondering whether it will be during or after it's common, and how widespread the abuse will be, given that even if there are provisions to prevent that, some enterprising fraudsters will find a way.
- mywittyname 4y ago
  Dealerships are collectively, very powerful groups. This would not the be first time they've convinced Congress to dump money into their pockets with such schemes. CARS Act comes to mind. The outrage will come, but dealerships will have bled every dollar they can before anything is done. And the same people voting for the bill will come out next year campaigning against such corruption and stupidity by the government.