US EV tax credits

[Jhenson29]

Stuff is priced on what people pay, and having a $7500 credit just meant that companies increase MSRP to capture as much of that $7500 as they could. As soon as the credit went away, GM effectively reduced the price of the Bolt without changing the MSRP. (And only Tesla folks are crazy enough to pay MSRP for an american car, as everything else sells at "invoice" or below)

Even if the price is inflated by the tax credit and goes to the manufacturer, who cares? Sounds better, honestly.

Manufactures are incentivized to make the cars through what’s effectively a subsidy they can just add to the cost of the car. And consumers are incentivized through transaction utility. If the goal is to push everyone that direction, seems ideal. ?‍

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[Midlifecrisis]

Out of interest, how much is the tax credit worth in the US? We have one in the UK but I think they have just done a similar thing with it here. I think it is worth something like £3500 but only on cars worth under £35k. Something like that, so I didn’t bother worrying about it since anyone buying a car like a Taycan is not a priority far a tax break

 

[Midlifecrisis]

There is a tax benefit to having an EV as a company car though, whatever its value. They will of course phase that out over time, but now is a good time for company car drivers to buy an EV

 

[Jhenson29]

Out of interest, how much is the tax credit worth in the US? We have one in the UK but I think they have just done a similar thing with it here. I think it is worth something like £3500 but only on cars worth under £35k. Something like that, so I didn’t bother worrying about it since anyone buying a car like a Taycan is not a priority far a tax break

$7500 federal tax credit and some states may have additional state level credits. Limit is based on # of EVs manufacturer has sold.

 

[Mr.Smith]

Great comment.

In this same vein, consider a different proposition. The people buying $100k+ cars are absolutely the ones most undeterred by high gasoline prices. If not for excellent EVs at better pricing, we would all be driving AMGs, Panameras, Ms, etc (as mentioned in an earlier post). The goal is to get people off gasoline. The incentive is the BEST way to do it. Limiting it to poorer buyers or cheaper cars ignores the realities of those who are most likely to by an EV presently.

As for roads, the government will have to move to a miles-based tax rather than a gasoline tax. Indeed, at present, the lack of a mileage tax is another incentive for EV drivers.

I agree with what you're saying about incentives. Its motivated many to go EV, including myself.

I wouldn't worry about collecting taxes at this point. The government spending is limitless and can never be repaid anyway.

 

[whitex]

Welcome to our part of the world - penalise the 'wealthy' for the greater good and all of that!

At some point all of this has to disappear (and other perks) otherwise there will be no revenue stream for roads and highway maintenance (we don't pay annual road tax which is afforded to 100% EVs)...it's just a question of when.

EVs should and do pay road taxes. For example in Washington state they add a tax equivalent to 12,000 miles at average car mpg to your annual tabs. They also add another 50% more for charging infrastructure. It seems fair, roads need funding too. Of course, a much more fair way would be to simply tax tires, all cars regardless of fuel use them, and the heavier the wear on the tires the heavier the wear on the roads. But of course, WA state has a very left Democratic government, so instead they are now trying to add as much as $0.25 per mile additional tax, because as they say, EVs are rich people's toys, and the rich have to pay. If that happens, I might just switch back to ICE cars. After all the official stance of WA government is that the state does not have a car pollution problem, only has a traffic congestion problem (argument the government used to explain why EVs don't get HOV access in WA).

 

[KTC]

After all the official stance of WA government is that the state does not have a car pollution problem, only has a traffic congestion problem (argument the government used to explain why EVs don't get HOV access in WA).

If WA actually ticketed all the idiot Prius drivers hogging the left lane it would easily pay for all these things.

 

[XLR82XS]

If WA actually ticketed all the idiot Prius drivers hogging the left lane it would easily pay for all these things.

ALL cars that hog the left lane. F**K I swear if everyone just used cruise control on highways life would be better for all.

 

[rich_r]

When you can get a Bolt for $27k here new, there no reason (other than luxury) to subsidize anything over $40k.

Stuff is priced on what people pay, and having a $7500 credit just meant that companies increase MSRP to capture as much of that $7500 as they could. As soon as the credit went away, GM effectively reduced the price of the Bolt without changing the MSRP. (And only Tesla folks are crazy enough to pay MSRP for an american car, as everything else sells at "invoice" or below)

Yup. If the tax credit disappeared for the taycan I bet Porsche would quietly lower the price

 

[Miwa]

Yup. If the tax credit disappeared for the taycan I bet Porsche would quietly lower the price

Unlikely. The Taycan is priced based on what a Panamera and Cayenne costs, as it has to slot in to its marketing position.

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