Senate $40k cap on ev tax credit

[AndroidAppBundle]

Why are Senate Republicans pushing this, and not Senate Democrats? EV affordability and accessibility is a problem for low and middle income Americans. This carrot and stick incentive refocuses the EV conversation back on affordable and accessible EV options.

I personally believe this will accelerate EV adoption; and I am by no means a republican.

This is 100% voted on by senate republicans (and 3 democrat stooges). This is absolutely a poison pill to quash EV adoption.

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[AndroidAppBundle]

These could just as easily be their employers vehicles, and they don't have vinyl wraps or anything to identify them as corporate owned vehicles.

A lot of construction jobs cost of admission can be to have a capable vehicle that can tow and carry a literal ton of supplies around.

This is a funny debate; we are a bunch of affluent prima donnas who are hopped up on consumerism and our luxury Rivian vehicles - trying to convince ourselves and everyone else, that our $80k vehicle purchase hinges on a tax credit, and that we would all be unable to justify the Rivian purchase, were it not for the tax credit. This has to be hard for Rivian to watch. Many on here are basically saying; "Sorry RJ, your vehicles are nice, but not nice enough for everyone to want to pay the asking price"

I see a LOT of 50-60k high trim trucks around low income housing in rural areas by my house.

 

[AndroidAppBundle]

The 200k cap is a great point. If I were an established auto company like Ford or Chevy...it would make sense to invest in equity ownership of brands like Lordstown and Rivian. Their investment secures them profit on brands that are eligible for the tax credit.

The affordable and accessible EV models have all hit their 200k tax credit cap long ago. The brands that haven't (Audi, Volkswagen, and Ford) will do that very quickly with the Mach6, ID4 and Q4 Etron. Only the ID4 is priced under 40k (right at 39,995).

Perhaps a progressive or tiered system could be used.

$7500 credit has 2 million vehicle cap, with the max vehicle price being $40,000 and Made in America. Extra $500 incentive for union made.
$5000 credit has 500k vehicle cap, with the max vehicle price being $50,000 and Made in America. Extra $500 incentive for union made
$2500 credit has 200k vehicle cap, with the max vehicle price being 80k, and Made in America. Extra $500 incentive for union made
$500 credit has 50k vehicle cap, with the max vehicle price being 80k, and made anywhere

I think that is actually a decent compromise. We want to incentivize manufacturers to bring affordable vehicles to the market, and reward them for making them in America. We want to still reward brands like Audi, Cadillac, Rivian for making EV models available - but we don't want to give away billions of dollars to subsidize luxury purchases, as the luxury EV market is doing "just fine" (if by just fine, we mean 36k vehicle sales in 2020 for Model X and ETron. Which is a laughably small amount of vehicles).

Ford and Chevy (depending the definition of "built in the US")

But that is not part of the current proposal anyway. Any compromise bill is most likely to:

• Raise or eliminate the qualifying MSRP from the proposed $40K
• Raise or eliminate the Income Cap
• have no additional incentive for "US built"
• contain no additional incentive for "Union built"
• rework the 200K per manufacturer cap

 

[nfrank]

I’ve got some configuration remorse right now. If this or something like this gets signed into law and I can’t get the $7,500 credit then the max pack I chose is essentially a $19,300 add-on (max pack + tax credit + wheel upgrade) compared to the launch edition that I may have been able to get in 2021 since I’m an early reservation holder. This is a steep cost for 100 miles.

Does anyone think there’s any chance I can go back to launch edition?

 

[godfodder0901]

I’ve got some configuration remorse right now. If this or something like this gets signed into law and I can’t get the $7,500 credit then the max pack I chose is essentially a $19,300 add-on (max pack + tax credit + wheel upgrade) compared to the launch edition that I may have been able to get in 2021 since I’m an early reservation holder. This is a steep cost for 100 miles.

Does anyone think there’s any chance I can go back to launch edition?

No.

 

[DucRider]

I’ve got some configuration remorse right now. If this or something like this gets signed into law and I can’t get the $7,500 credit then the max pack I chose is essentially a $19,300 add-on (max pack + tax credit + wheel upgrade) compared to the launch edition that I may have been able to get in 2021 since I’m an early reservation holder. This is a steep cost for 100 miles.

Does anyone think there’s any chance I can go back to launch edition?

I configured a Launch Edition a least partly for this very reason.
I may want the Max Pack (possibly with the Explore trim), but can change my configuration to include those at any time. The reverse is not true.

 

[buddha2lotus]

I don't know if it has been mentioned, this amendment is "non-binding" and most people don't see it passing through the House of Representatives because most will be against it.

 

[Trekkie]

it was a non binding amendment made to score points and scream about the "bidinflation" on twitter for the cheap seats that aren't paying any attention. That or part of a shakedown to get one of the EV manufacturers to build in their state instead

 

[flabyboy]

These could just as easily be their employers vehicles, and they don't have vinyl wraps or anything to identify them as corporate owned vehicles.

A lot of construction jobs cost of admission can be to have a capable vehicle that can tow and carry a literal ton of supplies around.

This is a funny debate; we are a bunch of affluent prima donnas who are hopped up on consumerism and our luxury Rivian vehicles - trying to convince ourselves and everyone else, that our $80k vehicle purchase hinges on a tax credit, and that we would all be unable to justify the Rivian purchase, were it not for the tax credit. This has to be hard for Rivian to watch. Many on here are basically saying; "Sorry RJ, your vehicles are nice, but not nice enough for everyone to want to pay the asking price"

I e personally been waiting and waiting for the right time to buy an EV. Wanted to see improvements made and increased competition. Also needed to be at a point where I could reasonably afford something like this. I’m personally on the bubble with the price. The $7500 makes a difference to me. We’ve subsidized the fossil fuel industry for a century. Think we can handle supporting the transition to EVs for a bit. Really not sure how a $40,000 hard cap would accelerate EV adoption. Companies have already invested billions into their transition. Very few of their vehicles would qualify. And yes, there are people who will decided against if there is a 7500-10000 price difference.

 

[flabyboy]

I see the House pushed this thru. No mention about the tax credit amendments. Anybody hear any details ?

 

[Autolycus]

I see the House pushed this thru. No mention about the tax credit amendments. Anybody hear any details ?

The House has basically just begun the process of drafting the actual budget reconciliation bill. The various committees are expected to get to work on it and report back by Sept. 15. We will probably not even see final language at that point.

 

[flabyboy]

The House has basically just begun the process of drafting the actual budget reconciliation bill. The various committees are expected to get to work on it and report back by Sept. 15. We will probably not even see final language at that point.

So was the amendment that the senate pushed part of the 1 trillion dollar infrastructure bill or the 3 trillion dollar reconciliation bill that is a long ways off? That’s what I’m confused about. I figured it was part of the 1 trillion dollar bill that had already passed the senate.

 

[Autolycus]

So was the amendment that the senate pushed part of the 1 trillion dollar infrastructure bill or the 3 trillion dollar reconciliation bill that is a long ways off? That’s what I’m confused about. I figured it was part of the 1 trillion dollar bill that had already passed the senate.

The Senate passed a non-binding budget resolution that would attach to the $3.5T reconciliation. It was not part of the $1T+ bipartisan bill. The House today agreed to a deadline for doing something more with the bipartisan bill by the end of September (the 27th, I think). That was a compromise that was part of their plans to start forward movement on the larger bill, which is the one that currently has the non-binding resolution that would change the EV credit.

I don't think there's any chance the Democrats adopt the changes that were in the Senate's resolution. That resolution was passed primarily by Republicans with 2 Dems joining their vote. The EV credit is going to be small potatoes in the negotiations with those 2 to get their votes on the $3.5T bill.

 

[flabyboy]

The Senate passed a non-binding budget resolution that would attach to the $3.5T reconciliation. It was not part of the $1T+ bipartisan bill. The House today agreed to a deadline for doing something more with the bipartisan bill by the end of September (the 27th, I think). That was a compromise that was part of their plans to start forward movement on the larger bill, which is the one that currently has the non-binding resolution that would change the EV credit.

I don't think there's any chance the Democrats adopt the changes that were in the Senate's resolution. That resolution was passed primarily by Republicans with 2 Dems joining their vote. The EV credit is going to be small potatoes in the negotiations with those 2 to get their votes on the $3.5T bill.

I appreciate you clearing that up. Wasn’t sure which bill it was attached to ??

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