Good Bye $7,500 tax credit!

[TieCon]

Do vehicles shipped to port or dealer missing parts to be installed later qualify? ?

I think it depends on the technicalities. Just like items made in China, but assembled in the USA can claim MADE IN THE USA.

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[TieCon]

There is a transition period but the rules for making a qualifying purchase during this period are ambiguous.

Clearly, any transaction for a vehicle ordered and delivered after 31-Dec-2022 falls under the new rules for MSRP cap, AGI amount, and USA content.

And any transaction with a "written binding contract to purchase" in place before Biden signs the IRA bill will be covered by the old rules even if the vehicle is delivered in 2023.

However, the text of the bill does not seem to comprehend a transaction made between the signing of the bill and 1-Jan-2023. Biden could add clarity to the text of the bill by signing it on 1-Jan-2023. But I don't think that he is likely to wait over four months to sign.

I hope they provide some clarity, because some of us have a, "binding" contract for allocations which we could technically say is true. But if the allocations land in 2023 it really starts to get ambiguous.

 

[NJ-Taycan]

For those who already purchased this year, you will be fine. The bill has a provision for buyers orders which are signed prior to 12/31/2022. After that, bye bye credit for premium brand EV’s and for folks with AGI incomes over $150k single and $300k married. The other issue is the requirement for battery elements to come from US sources. This will take time to get ramped up, so in the meanwhile, nobody will get an EV tax credit. And by the time the US car makers ramp up, they will raise prices on new cars which will essentially wipe out the benefit for everyone

Got my credit for my Taycan and will likely purchase one more EV prior to 12/31 for my daughter. After that, kiss this goodbye.

This is also not a good deal for Tesla as only the base model 3 without autonomous driving will qualify based on MSRP.

Elections have consequences.

 

[NuJerzPorsche]

So they now want to take away incentives for people trying to transition to EVs. This is ass backwards. A lot of folks I know didn't even want to make the switch but did so because of all the incentives and started to actually like their EVs.

I thought even the president would smarten up and say the senate is crazy but of course he didn't and signed off

 

[hitmonlee]

This is also not a good deal for Tesla as only the base model 3 without autonomous driving will qualify based on MSRP.

Doesn't Model Y qualify as its MSRP is below the $80k SUV threshold? Is it not considered an SUV?

 

[Torv]

So they now want to take away incentives for people trying to transition to EVs. This is ass backwards. A lot of folks I know didn't even want to make the switch but did so because of all the incentives and started to actually like their EVs.

I thought even the president would smarten up and say the senate is crazy but of course he didn't and signed off

I think you’re misunderstanding the scope of the bill. Here’s a key takeaway:

”Further, vehicles must have an MSRP of under $55k for cars and $80k for SUVs and trucks, otherwise they don’t count, leaving out several Tesla configurations and trucks like the USA-made Rivian. And buyers can only take advantage of the credit if they make under $150k a year – which will likely affect some of these higher-end car buyers."

I think this bill will go a long way to both encourage the adoption of EVs and motivate those on the fence to buy an EV.

https://electrek.co/2022/08/07/senate-improves-ev-tax-credit-in-largest-climate-bill-ever/

 

[NuJerzPorsche]

I think you’re misunderstanding the scope of the bill. Here’s a key takeaway:

”Further, vehicles must have an MSRP of under $55k for cars and $80k for SUVs and trucks, otherwise they don’t count, leaving out several Tesla configurations and trucks like the USA-made Rivian. And buyers can only take advantage of the credit if they make under $150k a year – which will likely affect some of these higher-end car buyers."

I think this bill will go a long way to both encourage the adoption of EVs and motivate those on the fence to buy an EV.

https://electrek.co/2022/08/07/senate-improves-ev-tax-credit-in-largest-climate-bill-ever/

thanks for the clarification. Def a misunderstanding on my part:

 

[jijitalia]

One question ....who will benefit from that bill really ? Which Manufacturer ?
I am in EU & we already experience such ... before u guys in US !

My suggestions for the unlucky ones that will be screwed for few months : Look close to Mr Pelosi position on the trading market for auto /battery manufact. then copy its positions => you will make much more than 7,5k ... & voila

 

[most_vexing_parse]

According to this Politico article, not a single electric vehicle currently on the market will qualify for the tax credit (due to the sourcing requirements):

To get a deal on the reconciliation bill that contains the credits, lawmakers had to agree that electric vehicles should be made with North American parts and minerals, even though it would rely on a U.S. supply chain that is in its infancy. Those rules allow lawmakers — including Sen. Joe Manchin (D-W.Va.), who insisted on the restrictions — to ride a tough-on-China message into the midterms. Democrats have a problem, though — they’re so tough that no electric vehicle on the market would qualify.

The article does go on to say that the requirements could be waived or eased, but the broader point is that the situation is murky, at best.

 

[FlyingPoint]

Frankly, losing the tax credit is the least of the problem. 87,000 new IRS agents gives me indigestion.

 

[rich_r]

I remain skeptical that these tax credits benefit consumers that much. There is a market price for each car and the market adjusts to take into account any tax credits. Just pure supply and demand. And yes, that applies to Porsche as well.

 

[NJ-Taycan]

Doesn't Model Y qualify as its MSRP is below the $80k SUV threshold? Is it not considered an SUV?

If they classify it as an SUV, which is it. Seems that the long range without self-driving would fall under that price point. If you bump up to the performance with self-driving, I suspect that EV would be too expensive. So, the government is now helping consumers to select their preferred options

 

[rich_r]

If they classify it as an SUV, which is it. Seems that the long range without self-driving would fall under that price point. If you bump up to the performance with self-driving, I suspect that EV would be too expensive. So, the government is now helping consumers to select their preferred options

I think part of the confusion is that the tax credit is split into 2 parts: 1/2 based on where the vehicle is assembled and 1/2 based on where the batteries are sourced from. Its my understanding that, for some of their models, Tesla sources the batteries from China. (Not sure if thats the case for any Model Y configurations soldi in the US though).

 

[Visceral]

I have little doubt that the US auto industry took significant part in writing the bill and will probably between Ford and GM have a large number of vehicles soon that will fit in the credit.

 

[f1eng]

This new bill passed senate, targeted to benefit low/medium income families and American economy. They have so many limits:

1) Income limit (150K for individual and 300K for family) - excludes folks with high income
2) Price limit - sedan 50K and suv 80k, removes luxury segments
3) Car to be manufactured in US and battery parts to be supplied from US and allies. - boost US economy.

Sad part is that Taycan won’t satisfy (2) and (3) if not all three.

This means this is the end for us to enjoy the $7,500!

Not sure anyone bummed to see this go or care much about it, but I do feel disappointed that I won’t get an additional saving of $7,500 as I am yet to get my allocation.

As a non-US citizen that looks fair enough to me.
Supporting the less well off buy a domestically manufactured product makes more sense than helping somebody wealthy to blag a bit off the tax payer when buying an entirely foreign made car.
Probably lucky to have got away with it so long!

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