Frightening EV Credits

[gd_r1t]

If the vehicle price cap stays at $74k for pickups, it practically creates a $10,000 + ($73k minus $67.5k) = $15.5k price gap for Adventure vs. Explore packages.

Unless getting a base Adventure with no upgrades for paint/wheels or most other things.

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[roth_nj]

only thing that matters really is making it point of sale vs an end of the year right off... did that make it in?

 

[TXR1S]

In the bill text just released-

$12,500 credit (us union built) / $7500 (us non-union built).
74k limit for pickups
69k limit for SUV

income limits pretty high, 800k married filing joint

https://rules.house.gov/sites/democrats.rules.house.gov/files/BILLS-117HR5376RH-RCP117-17.pdf

 

[srwaxalot]

Is the $74k per or post tax and fees? Configurator shows $70k for mine.

 

[TXR1S]

Is the $74k per or post tax and fees? Configurator shows $70k for mine.

limit would be MSRP, I believe

 

[kurtlikevonnegut]

If this passes as is, it will pretty much force the issue for me to switch from my current plan (replace current family car with R1S to be my daily drive and primary family car) to my plan B (replace current family car with VW Buzz when it is available and get an R1T for myself). If they do end up making the Buzz in Nashville, that would mean $20k in tax credits between the two purchases, which would effectively make the total cost of a SR R1T and a VW Buzz equivalent to the R1T by itself.

 

[Aroohoo]

only thing that matters really is making it point of sale vs an end of the year right off... did that make it in?

Current wording has it still as an end of year credit and not a point of sale

 

[nfrank]

In California our state EV rebate is capped based on MSRP, but that MSRP is calculated from the base price of the model. I think the limit is $40k or something. So now I as long as there's some base version of a Tesla Model 3 that is under $40k, then all Model 3's are eligible for the rebate. You can option yours out to over $60k and get the rebate.

Hopefully that's how the new federal plan works.

 

[Aroohoo]

Is the $74k per or post tax and fees? Configurator shows $70k for mine.

Currently based on MSRP:

No credit shall be allowed under subsection (a) for a vehicle with a manufacturer’s suggested retail price in excess of the applicable limitation.

I can see Tesla going back to what they did with selling a 'reduced capacity' battery as the base level to get MSRP under a given number, then selling an 'option' to upgrade to full capacity. If memory serves me right, I think they did this in Canada to get the incentive there.

Maybe Rivian will consider something similar?

 

[Aroohoo]

In California our state EV rebate is capped based on MSRP, but that MSRP is calculated from the base price of the model. I think the limit is $40k or something. So now I as long as there's some base version of a Tesla Model 3 that is under $40k, then all Model 3's are eligible for the rebate. You can option yours out to over $60k and get the rebate.

Hopefully that's how the new federal plan works.

Looks like that determination will left be up to the DOT as there is currently no additional language on which MSRP to use, so it falls under the purview of the Secretary of Transportation:

(3) REGULATIONS AND GUIDANCE.—For purposes of this subsection, the Secretary shall prescribe such regulations or other guidance as the Secretary determines necessary or appropriate for determining vehicle classifications using criteria similar to that employed by the Environmental Protection Agency and the Department of the Energy to determine size and class of vehicles.

Given the administration's stance on reducing carbon emissions, one could see a scenario where they interpret the MSRP requirement as the lowest model since it would make the credit available to the most amount of buyers and further the goal of reduced emissions/electrification.

 

[jjswan33]

The text of the bill is here:

https://www.govinfo.gov/content/pkg/BILLS-117hr5376rh/pdf/BILLS-117hr5376rh.pdf

EV Tax credit is on page 1868. My summary:

Phases out starting at $400k MAGI
$74k MSRP limit for truck
$69k MSRP limit for SUV

Total EOY credit is $7500 but $12000 for union built in the US and an extra $500 kicker for US content requirements.

 

[Craigins]

I'm not planning on any form of a credit/refund. It's kinda like Social Security, I'm pretty sure it will be gone/offer almost nothing by the time I could get anything out of it.

If it's there, "Woohooo!", but I'm not counting on it and not budgeting around it.

This is the correct way to deal with anything the government says it will "give" you.

Any other expectations are wishful thinking.

 

[R_1_T]

In the bill text just released-

$12,500 credit
74k limit for pickups
69k limit for SUV

income limits pretty high, 800k married filing joint

https://rules.house.gov/sites/democrats.rules.house.gov/files/BILLS-117HR5376RH-RCP117-17.pdf

How will this stuff be paid for?
SEC. 138203. SURCHARGE ON HIGH INCOME INDIVIDUALS, 20 ESTATES, AND TRUSTS

This and talk of taxing Non-realized/paper capital gains should concern everybody.

 

[TXR1S]

Looks like that determination will left up to the DOT as there is currently no additional language on which MSRP to use, so it falls under the purview of the Secretary of Transportation:



Given the administration's stance on reducing carbon emissions, one could see a scenario where they interpret the MSRP requirement as the lowest model as it would make the credit available to the most amount of buyers and further the goal of reduced emissions/electrification.

I really hope this is possible. Otherwise Max Pack becomes EXPENSIVE.

 

[Matt D.]

Either way, it looks like the R1S will completely excluded from the tax credit ?

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