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There are only two types of entities that buy cars: human persons and corporate persons. Currently the US government is subsidizing EV purchases for both groups

There are only two types of entities that buy cars: human persons and corporate persons. Currently the US government is subsidizing EV purchases for both groups a little bit. There's a $7500 tax credit for human persons (with restrictions) but corporate persons get a $40000 tax credit without restrictions. Some persons are more equal than others.

alephnerd 4y ago
Business Owners have been able to expense business vehicles since time immemorial because a vehicle is treated as a depreciating asset
vxNsr 4y ago
Can you expand on this $40000 tax credit?
- klodolph 4y ago
  I’m guessing it’s just the section 179 deduction, filtered through the internet. I’ve seen a lot of misinformation about section 179 deductions online. People mix up deductions with credits, get the numbers wrong, and they aren’t aware of depreciation recapture. These are errors I’ve seen in TikTok videos with “advice” for saving money on taxes—advice which usually either won’t work or will actually land you in jail.
- kube-system 4y ago
  https://www.irs.gov/credits-deductions/commercial-clean-vehicle-credit https://www.irs.gov/credits-deductions/commercial-clean-vehi... It's for EV commercial trucks, basically.
karagenit 4y ago
Huh? The tax credit for small vehicles is the same for both at $7500. The $40k credit is only for large trucks, capped at 30% of the vehicle’s value, and with all of the same restrictions. https://afdc.energy.gov/laws/13039 https://afdc.energy.gov/laws/13039
Dotnaught 4y ago
That's a misframing of a story about gender differences in purchasing, one that seems to go out of its way to avoid addressing the point that roadside safety is a greater concern for some buyers than others.
HeyLaughingBoy 4y ago
That's interesting. So if I start an S-Corp and fund it appropriately, I can use it to buy a company car at a huge discount? Hmmm. [edit] nm. As others have said, it looks like it's just the regular Section 179 deduction.

alephnerd 4y ago

Business Owners have been able to expense business vehicles since time immemorial because a vehicle is treated as a depreciating asset

vxNsr 4y ago

Can you expand on this $40000 tax credit?

klodolph 4y ago
I’m guessing it’s just the section 179 deduction, filtered through the internet. I’ve seen a lot of misinformation about section 179 deductions online. People mix up deductions with credits, get the numbers wrong, and they aren’t aware of depreciation recapture. These are errors I’ve seen in TikTok videos with “advice” for saving money on taxes—advice which usually either won’t work or will actually land you in jail.
kube-system 4y ago
https://www.irs.gov/credits-deductions/commercial-clean-vehicle-credit https://www.irs.gov/credits-deductions/commercial-clean-vehi... It's for EV commercial trucks, basically.

karagenit 4y ago

Huh? The tax credit for small vehicles is the same for both at $7500. The $40k credit is only for large trucks, capped at 30% of the vehicle’s value, and with all of the same restrictions. https://afdc.energy.gov/laws/13039 https://afdc.energy.gov/laws/13039

Dotnaught 4y ago

That's a misframing of a story about gender differences in purchasing, one that seems to go out of its way to avoid addressing the point that roadside safety is a greater concern for some buyers than others.

HeyLaughingBoy 4y ago

That's interesting. So if I start an S-Corp and fund it appropriately, I can use it to buy a company car at a huge discount? Hmmm. [edit] nm. As others have said, it looks like it's just the regular Section 179 deduction.