Proposed U.S. $12,500 tax credit . . . BUT

[WilderAZ]

It is quite unfortunate to see this forum descend into political bickering, ignorance, and worse. Perhaps one might actually read the house and senate versions of proposed legislation (or credible summaries of them) before commenting.

The relevant news for prospective Taycan owners, and this should come as no surprise, is that the $7,500 federal tax credit is likely to disappear due to the vehicle's high base price. Those purchasing vehicles (including vehicles from companies that have already exceeded 200,000 unit deliveries such as Tesla and GM) within the price limits are likely to see the credit extended and potentially expanded for factors including US vehicle, US battery, and union manufacture. There is also the possibility that the credit will be provided as a rebate at the time of purchase. There are also proposals to provide modest credits for used EV purchases. Purchaser's with high incomes might be excluded from these programs.

To be clear, there are competing proposals and no assurances that any of the above will come to fruition. As of this date, nothing has been written into law.

Sponsored

 

[Pprior]

The left: "climate change, it's an emergency, we need to get gasoline powered cars off the road immediately"

Also the left: "remove all incentives for EVs unless they are for low budget cars made in Union shops"

 

[Kingske]

It is quite unfortunate to see this forum descend into political bickering, ignorance, and worse. Perhaps one might actually read the house and senate versions of proposed legislation (or credible summaries of them) before commenting.

The relevant news for prospective Taycan owners, and this should come as no surprise, is that the $7,500 federal tax credit is likely to disappear due to the vehicle's high base price. Those purchasing vehicles (including vehicles from companies that have already exceeded 200,000 unit deliveries such as Tesla and GM) within the price limits are likely to see the credit extended and potentially expanded for factors including US vehicle, US battery, and union manufacture. There is also the possibility that the credit will be provided as a rebate at the time of purchase. There are also proposals to provide modest credits for used EV purchases. Purchaser's with high incomes might be excluded from these programs.

To be clear, there are competing proposals and no assurances that any of the above will come to fruition. As of this date, nothing has been written into law.

All politics aside (although the union thing remains a bit bizarre), it is strange and not necessarily pro-environment that in the current working draft a higher MSRP limit is proposed for SUVs ($69.000) and for pickup trucks ($74,000) than for regular cars ($55,000). This creates an incentive to buy bigger vehicles for personal use which also means more materials, more manufacturing energy, a bigger delivery transportation footprint, and more volume to be recycled or disposed of at end-of-life. From a personal point of view an MSRP limit for the credits stings a little, but from a societal perspective I can understand it. However, such limit should be the same for SUVs and regular cars.

 

[Tsingtao]

Lets be real here. We don't know who is running the country. Biden doesn't know what day it is.

Not only does he not know what day it is, based on his current travel schedule, he likely has absolutely no idea where he is.

 

[Tsingtao]

Did you really just say that?

Theyre going after Tesla, the american EV company who revolutionized the EV market world wide. Imagine if they did to ford and the model T. Its shameful, they didnt even invite elon musk to their events. He is sending rockets to space. Shame is the name of the current administration.

I'm not a big Elon fan (although I do recognize and admire the substantial contribution he has made to society) but the dude is getting royally wanked-off by Biden, the progressives and their constituents, specifically organized labor. And, this BS about denying tax credits based upon MSRPs is maddening. We need to encourage everyone, whether rich or not so rich, to stop cooking the planet.

 

[Toodal00]

I'm not a big Elon fan (although I do recognize and admire the substantial contribution he has made to society) but the dude is getting royally wanked-off by Biden, the progressives and their constituents, specifically organized labor. And, this BS about denying tax credits based upon MSRPs is maddening. We need to encourage everyone, whether rich or not so rich, to stop cooking the planet.

First they say, climate change is happening, but ohh no the rich can still cook the planet and not be incentivized to switch to green cars. Bunch of phony hypocrites. average price of a car in the US now is 46K I dont see how a 80K is only for the rich. middle class can now afford such car after not having to pay for gas $350 avg a month in CA/ Los Angeles making a expensive EV affordable

 

[hkarthik]

The proposed changes are a textbook case of how politicians take an issue and utilize it for their own gains, and then prevent the issue from ever getting solved.

I believe in climate change and reducing my carbon footprint, so I bought an EV. It'd be great if more like-minded people could also buy EVs to do the same thing. I don't really care if they are rich or middle class, nor do I really care if some companies make a lot of money on their EVs. Or if some people get to save some money on taxes. I also don't necessarily care if they're made 500 miles from me, or 15,000 miles from it. We all live on the same damn planet.

 

[Superrat]

Anyone not brain-washed knows climate change is BS.

FIGURES AN IDIOT LIKE YOU HAILS FROM FLORIDA!!!

 

[RPTRXV]

The point is that there are limited funds to spend so they are trying to spend them where they are most effective … at the low end. If you gave me additional tax incentives I would just add more options to my car - let’s be honest you would too because you have the money.

 

[285kph]

The point is that there are limited funds to spend so they are trying to spend them where they are most effective … at the low end. If you gave me additional tax incentives I would just add more options to my car - let’s be honest you would too because you have the money.

Yes. I bought two cars eligible for the $7.5k credit recently (X5 45e and base Taycan), and it seems somewhat ridiculous to have those purchases subsidized by the general public. Being just as much a hypocrite as most everyone else, I'll still take the money...

 

[Mike in CA]

I, for one, come to special interest forums like this to get away from the political insults and narrow minded, poorly informed arguments that characterize many other social media platforms. Disappointed to see them bubble up here.

Does this forum have moderators? Seems like a good time for one to step in.

 

[whitex]

Theyre going after Tesla, the american EV company who revolutionized the EV market world wide. Imagine if they did to ford and the model T. Its shameful, they didnt even invite elon musk to their events. He is sending rockets to space. Shame is the name of the current administration.

The companies which were invited were one which made hefty contributions to the Biden campaign. Evidently Elon doesn't understand that capitalism extends to political influence. It has a supply, demand and price just like Elon's products. At some point Elon should realize that in order to do a complete vertical integration, he will have start a new country or buy enough politicians. Political influence is no less important then any other parts to build a Tesla, be it chips or batteries.

 

[whitex]

All politics aside (although the union thing remains a bit bizarre), it is strange and not necessarily pro-environment that in the current working draft a higher MSRP limit is proposed for SUVs ($69.000) and for pickup trucks ($74,000) than for regular cars ($55,000). This creates an incentive to buy bigger vehicles for personal use which also means more materials, more manufacturing energy, a bigger delivery transportation footprint, and more volume to be recycled or disposed of at end-of-life. From a personal point of view an MSRP limit for the credits stings a little, but from a societal perspective I can understand it. However, such limit should be the same for SUVs and regular cars.

If the goal is to transition to EV as quickly as possible, how does any limit make sense at all, unless you introduce politics into the answer. Whether a family buys an EV instead of an ICE, or a millionaire buys a fleet of EV's instead of a fleet of ICE cars, I would argue the millionaire fleet purchase might even have a bigger impact on transition to EV cars. In other words, how do you keep politics aside and try to explain the proposals made by politicians? Go ahead, I dare you to give it a try. Perhaps @WilderAZ or @Mike in CA have a non-political explanation?

 

[whitex]

The point is that there are limited funds to spend so they are trying to spend them where they are most effective … at the low end. If you gave me additional tax incentives I would just add more options to my car - let’s be honest you would too because you have the money.

What math did you use to come up with what is "most effective"? Why does it matter if you spend the limited funds on cheap EVs? The incentive is per car, not a percentage of the price, so incentivizing 1,000 Chevy Sparks costs the exact same amount as incentivizing 1,000 Lucid Air's. Heck, one could make an argument that incentivizing a much longer range car (520 miles vs. 80 miles) has a bigger impact. Tying union labor to the incentives makes even less sense (unless of course you use politics to explain why it's good for the party rather than the planet).

 

[kort]

It is quite unfortunate to see this forum descend into political bickering, ignorance, and worse. Perhaps one might actually read the house and senate versions of proposed legislation (or credible summaries of them) before commenting.

ignorance and worse? are divergent opinions an anathema to you? the current proposals on the table are extremely political, classist and controversial.
conversation discourse is a means of hashing out the good and the bad involved.
bicker away!

Sponsored