Build Back Better -- EV Tax Credit

[Kellster]

I have sent this email to the President, my U.S. Senators, and congressional representative to request that, regardless of eligibility changes to the EV tax credit, those who ordered EVs in 2021 but do not take delivery until 2022, remain eligible to claim the credit. I hope that you will write as well. It couldn't hurt! Please feel free to use my form letter below:

Build Back Better – EV tax credit

I write concerning modifications to the EV tax credit. I have heard reports that the credit will be eliminated for cars above some price and that eligibility will be capped at some income limit. I won’t debate or condemn the policy change. However, due to the myriad supply chain issues there are a lot of people who ordered EVs this year which will not be delivered to the dealer until 2022. They ordered these cars with the expectation that the $7,500 tax credit would be available. Many people may have stretched their budget to order that car and relied on the tax credit.

I respectfully request that BBB be modified so that the measure extends the credit to people who ordered their EV in 2021 with expectation and reliance on a tax policy that was supposed to last until each manufacturer met some number of cars sold. These EV buyers, including me, will have the rug pulled out from under them as a result of unexpected changes to the tax policy and because of supply chain and delivery issues. That’s not good public policy or good faith.

Please extend the $7,500 credit to anyone who made a deposit and ordered an EV in 2021 but does not take delivery until 2022.

Thank you

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[DANgerous]

I have sent this email to the President, my U.S. Senators, and congressional representative to request that, regardless of eligibility changes to the EV tax credit, those who ordered EVs in 2021 but do not take delivery until 2022, remain eligible to claim the credit. I hope that you will write as well. It couldn't hurt! Please feel free to use my form letter below:

Build Back Better – EV tax credit

I write concerning modifications to the EV tax credit. I have heard reports that the credit will be eliminated for cars above some price and that eligibility will be capped at some income limit. I won’t debate or condemn the policy change. However, due to the myriad supply chain issues there are a lot of people who ordered EVs this year which will not be delivered to the dealer until 2022. They ordered these cars with the expectation that the $7,500 tax credit would be available. Many people may have stretched their budget to order that car and relied on the tax credit.

I respectfully request that BBB be modified so that the measure extends the credit to people who ordered their EV in 2021 with expectation and reliance on a tax policy that was supposed to last until each manufacturer met some number of cars sold. These EV buyers, including me, will have the rug pulled out from under them as a result of unexpected changes to the tax policy and because of supply chain and delivery issues. That’s not good public policy or good faith.

Please extend the $7,500 credit to anyone who made a deposit and ordered an EV in 2021 but does not take delivery until 2022.

Thank you

I hope this works out. I’m surprised if they are not honouring the tax credit for those that ordered before the goalposts moved. The same thing happened in Hong Kong (in fact they change the tax benefit every year) and they stipulated that those that ordered before a certain date would fall into the previous bucket for tax credit.

If they’re not doing that in the US then I feel for all of you that get caught up in that. That effectively means that when you buy a new car, you are assuming some variable tax risk that is completely unpredictable. That can’t be right!

 

[faroutinNM]

I have sent this email to the President, my U.S. Senators, and congressional representative to request that, regardless of eligibility changes to the EV tax credit, those who ordered EVs in 2021 but do not take delivery until 2022, remain eligible to claim the credit. I hope that you will write as well. It couldn't hurt! Please feel free to use my form letter below:

Build Back Better – EV tax credit

I write concerning modifications to the EV tax credit. I have heard reports that the credit will be eliminated for cars above some price and that eligibility will be capped at some income limit. I won’t debate or condemn the policy change. However, due to the myriad supply chain issues there are a lot of people who ordered EVs this year which will not be delivered to the dealer until 2022. They ordered these cars with the expectation that the $7,500 tax credit would be available. Many people may have stretched their budget to order that car and relied on the tax credit.

I respectfully request that BBB be modified so that the measure extends the credit to people who ordered their EV in 2021 with expectation and reliance on a tax policy that was supposed to last until each manufacturer met some number of cars sold. These EV buyers, including me, will have the rug pulled out from under them as a result of unexpected changes to the tax policy and because of supply chain and delivery issues. That’s not good public policy or good faith.

Please extend the $7,500 credit to anyone who made a deposit and ordered an EV in 2021 but does not take delivery until 2022.

Thank you

The BBB legislation already provides for EV purchases to remain eligible for the $7,500 credit just as before, regardless of when they occur. No existing EV credit will be eliminated by BBB. The only EV credits that will have limited applicability after BBB is enacted are those that will be added by the BBB bill, above and beyond the existing $7,500 credit.

So, it probably doesn't hurt to write in and express our position on it, adding your voice to the many responses that our leaders will receive. But there is no need to persuade anyone differently, because they already took our position into account before they wrote blueprint for the legislation.

Even better, BBB will also result in a lot of new charging stations, and cleaner sources to power them.

 

[Tooney]

The BBB legislation already provides for EV purchases to remain eligible for the $7,500 credit just as before, regardless of when they occur. No existing EV credit will be eliminated by BBB. The only EV credits that will have limited applicability after BBB is enacted are those that will be added by the BBB bill, above and beyond the existing $7,500 credit.

Are you saying that BBB will not limit/modify the existing EV tax credit to exclude vehicles priced above $80,000 from receiving any credit? If so, can you provide some links showing authority/sources for that?

 

[faroutinNM]

Are you saying that BBB will not limit/modify the existing EV tax credit to exclude vehicles priced above $80,000 from receiving any credit? If so, can you provide some links showing authority/sources for that?

"Contrary to the impression left by Graham, the House bill now under consideration would actually extend tax credits of $7,500 for the purchases of electric cars made anywhere, with or without union labor, for five years (See Section 136401). And they would be refundable tax credits, meaning that purchasers of electric vehicles would get the tax credit even if they paid less than the credit amount in taxes that year. "

source: https://www.factcheck.org/2021/11/electric-vehicle-tax-credits-in-democratic-plan/ (the whole thing is a good read about the EV credits in the draft bill "rules")

See page 109 of the BBB Act Rules Summary: https://rules.house.gov/sites/democrats.rules.house.gov/files/Section_by_Section_BBB.pdf

 

[Tooney]

Thanks for your posts. As a buyer sweating out whether or not my Taycan will arrive before or after December 31, I was given hope by your post. So I researched the matter.

In the BBB Act summary you posted, if you read on to page 110 you will see: "The provision is made effective beginning after December 31, 2021, replacing section 30D, the plug-in electric driving vehicle credit."

26 US Code Section 30D defines the current EV tax credit, which is non-refundable. The BBB EV credit replaces that section with a refundable credit. I looked at the latest text of the proposed BBB legislation, section 136401. It contains language that repeals section 30D.

My conclusion is that if BBB EV tax credit becomes law as written, Taycan buyers will not get the EV tax credit for cars arriving after Dec 31 due to the purchase price limitations in that credit.

 

[faroutinNM]

Thanks for your posts. As a buyer sweating out whether or not my Taycan will arrive before or after December 31, I was given hope by your post. So I researched the matter.

In the BBB Act summary you posted, if you read on to page 110 you will see: "The provision is made effective beginning after December 31, 2021, replacing section 30D, the plug-in electric driving vehicle credit."

26 US Code Section 30D defines the current EV tax credit, which is non-refundable. The BBB EV credit replaces that section with a refundable credit. I looked at the latest text of the proposed BBB legislation, section 136401. It contains language that repeals section 30D.

My conclusion is that if BBB EV tax credit becomes law as written, Taycan buyers will not get the EV tax credit for cars arriving after Dec 31 due to the purchase price limitations in that credit.

Ah, I see that you are correct, because of the new price limitation of $55,000 for non-SUV cars. Taycans start well above that, so I guess the theory is that those car owners don't need the credit so much, or they would buy a cheaper car.

 

[PanameraFrank]

Unfortunately your idea just doesn't work. The IRS isn't going to track down your emails to a dealership to an automaker etc.. to confirm when you ordered the car. All of that can be easily faked.

If you buy a car during the period covered by the new tax rules, they will be applied.

I agree with your point but it's not feasible and it's not going to gain any traction. They're not going to spend a bunch of time so someone buying a Taycan gets a larger tax rebate.

You would be better off putting your energy towards getting PCNA or your dealership to give considerations should this pass and you lose the rebate.

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