Changes to the tax credit is in the works

ab13

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The biggest issue I see is they want it to be in full effect until 50% of passenger vehicles sold are non gasoline. That could take 10 years, so that will be a considerable cost.
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MachEUser

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I think this proposal doesn't drastically change things except getting rid of manufacturers' caps which will help GM and Tesla. I don't think there are many union-made vehicles now and that may not pass since automakers' lobby will push back. They probably don't want this tied to union labor usage, etc. What if the battery is nonunion and part of the assembly is union. It would too difficult and confusing I think. It may just be there to appease union leaders.

Also, isn't there some language in NAFTA/USMCA that there can't be discrimination for products that are made in North America vs. the USA? There is a high amount of cross-border activity in car manufacturing that is difficult to monitor. Maybe there are some trade experts out here that know more.
 

deadduck

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There is a high amount of cross-border activity in car manufacturing that is difficult to monitor. Maybe there are some trade experts out here that know more.
Not a trade expert, but a quick search, from an unreliable source, said 50% of Tesla parts are from the USA. We can't be remotely close to having all the raw materials & parts any more.

Maybe made here but not sourced here.
 


Larry

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That was once the case. I don’t believe certain topics/opinions are allowed any more though.
 

Larry

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Chicken feed. Add a few zeros and we’re getting somewhere.
 

jlauro

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I assume he means compensate for not qualifying for $2500 of the proposed tax credit because the Mach E is not made in the USA.

It's moot until supply can match demand. If customers buy other vehicles because of the extra tax credit and demand dwindles I am sure Ford will do something, but it's silly to expect it when supply constrained.
 

ab13

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Yes, it could be massive. Also, it will be a "refundable personal
income tax credit." So that would apply to people regardless of income, which is potentially good. A person with low tax liability could get a large refund this way. But considering the cost, I definitely think it will change a lot before it could pass, because the long duration means large credits to people who can afford many cars for their family.

This is the purposed proposed legislation.

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