Good Bye $7,500 tax credit!

[Atipical]

We aren't all millionaires. $7,500 is certainly not an insignificant amount of money...not to me anyways.

Sponsored

 

[whitex]

Are WE seriously putting in that much the time and effort to figure out how to squeeze out a
$ 7500 rebate on a 120K car?

Perhaps some people who buy $120K cars think rationally - spending 10 hours of work doing this results in a potential ROI of $750 per hour after tax (so over $1,000 per hour pre-tax), a great time investment even for people who make more than $150K per year. Maybe at your income level $1,000+ per hour ROI is not worth while, but most people I bet would think is a good investment of their time.

 

[whan]

Are WE seriously putting in that much the time and effort to figure out how to squeeze out a
$ 7500 rebate on a 120K car?
Maybe those that aren't as well off as us could use the tax break more than most of us that can afford a 120K EV.... over a Hyundai IonicQ5, MachE! Just a thought....

I actually agree with the income and msrp caps in the bill as we dont need help, I probably would've bought either way (fwiw my income is multiples over the income cap so wouldn't be eligible on any vehicle)

That said, I am selfish and want to take advantage of break that still exists. As others have mentioned, why not spend a few hours of work to save $7500? I've only spent like 3 hours and I don't make $2500 an hour...

 

[Superrat]

I suppose as long as it doesn’t ruin your day stressing over it I guess is all I’m saying….. go for it guys!
K

 

[Tooney]

Per existing law, the tax credit for EV charging equipment - 26 U.S. Code § 30C - Alternative fuel vehicle refueling property credit- does not apply to property placed in service after December 31, 2021.
Unless that gets modified, the home EV charging equipment tax credit is no more.

The new bill extends the expiration date for the tax credit for EV charging equipment - Alternative fuel vehicle refueling property credit - to December 31, 2032.

See bill text https://www.congress.gov/117/bills/hr5376/BILLS-117hr5376enr.pdf file page 149: SEC. 13404. ALTERNATIVE FUEL REFUELING PROPERTY CREDIT

For non-business installations, the tax credit for installing a home EVSE is 30% of the cost, up to a maximum credit of $1000.

 

[Kayone73]

Are WE seriously putting in that much the time and effort to figure out how to squeeze out a
$ 7500 rebate on a 120K car?
Maybe those that aren't as well off as us could use the tax break more than most of us that can afford a 120K EV.... over a Hyundai IonicQ5, MachE! Just a thought....

FYI a tax credit is NOT the same as a rebate, you're conflating two different concepts. In case you're confused on the matter, this is not about saving money on the purchase price of a car, it is one part of MULTI PART strategy for a high income earner to lower his/her income tax burden within the legal tax code defined by the IRS.

Half of wealth building is about NOT pay more taxes than what the tax laws say you should. Not just earning a lot of money.

FYI, it appears today is the LAST day to get your SA to draft up a binding purchase agreement on paper before Biden signs the bill into law tomorrow:

https://electrek.co/2022/08/15/bide...-reduction-act-tomorrow-affecting-ev-credits/

 

[whitex]

And now it's gone....
https://apnews.com/article/biden-signs-climate-health-bill-9a7f349fa7b07387d20ad603f2ff4875

 

[Atipical]

Well based on the FAQ from the IRS, if you submitted a non-refundable deposit with your dealer then you’re covered under transitory status into the new law, so you’ll be able to take advantage of the tax credit. Good news for some, not for all.

https://www.irs.gov/businesses/plug-in-electric-vehicle-credit-irc-30-and-irc-30d

 

[TieCon]

Well based on the FAQ from the IRS, if you submitted a non-refundable deposit with your dealer then you’re covered under transitory status into the new law, so you’ll be able to take advantage of the tax credit. Good news for some, not for all.

https://www.irs.gov/businesses/plug-in-electric-vehicle-credit-irc-30-and-irc-30d

This might do a lot of us some good.

 

[whan]

The website specifically provides guidance that 5% or more non-refundable deposit qualifies. I guess turned out to be a good thing that my dealer wanted a $10k deposit that became non-refundable on build lock

 

[Atipical]

Fortunately I lucked out with a non-refundable deposit too! (Would've been nice if the IRS published this before Biden signed but we all know they waited on purpose).

 

[Hirschaj]

The website specifically provides guidance that 5% or more non-refundable deposit qualifies. I guess turned out to be a good thing that my dealer wanted a $10k deposit that became non-refundable on build lock

I wonder how many people put down $5K on a car that is just over $100K and will not qualify.

 

[gotzillar]

5%... my dealer was asking $5k for my GTS ST order. I guess I won't be able to claim the tax credit even though I have a binding contract?

 

[TieCon]

A lawyer should chime in, but the way I read it, the 5% is an example and not the only definition of an binding contract. So long as it is an enforceable and binding contract between you and the dealer (per state laws), it will apply. Their example is in the event it needed to be enforced. It's also in my head a bit confusing since it stated a binding contract also does NOT limit damages to an amount. So the 5% is a specified amount and damages can be said amount.

Again not a lawyer and could be missing one word which would make it all make sense. I gather that so long as there is an order agreement between you and the dealer it with deposit and, "binding" we can submit it come tax time and would be valid.

 

[DerekS]

Let's be honest with ourselves here.

Those of us who can afford 100-200K sportscars need that subsidy less than those in the 30-50K market.

Sponsored