EV tax credits in Build Back Better Act - income limit?

[Socalsp3]

Yeah ICE isn't toxic at all. Try running your ICE in a closed garage.

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[Rt1AWD]

This rebate is not about "social justice", privilege and other bs. It is simply to make it easier for manufacturers to sell EVs. Income limit is just an attempt to save a little money for the budget. The idea is that for people who are above this limit would not take that credit into consideration when choosing a car.

 

[Rt1AWD]

Why would I pay 12k more to save $600 a year in fuel?

Because it is a toy, not an investment ?

 

[Fat Mach]

Paying more in taxes than some households make in a year is a great feeling. Watching folks get stimulus checks that you never qualify for is fun. Honestly id prefer no EV tax credit and a lower tax liability. That'll never happen though.

Haha, I thought you were serious there for a moment.

 

[theo1000]

Heh! The rich have managed to get us to turn on each other again I see. Like ahem! Those barking things squabbling over scraps. Never mind that the richest guy in America was recently flexing about how he pays 0$ in tax due to tax code. Think about that for a sec. 0$ on 300 billion $ of wealth. The entire tax credit is worth about $ 1.5 Billion right now!

This income limit is being put in deliberately to try and divide us. As is this $55,000 wagon limit almost certainly put in by a TSLA fan boi to damage Ford. There are no coincidences folks, hold your water, write you congressman and senator to change things. I certainly will. The system is built to work that way.

 

[Badger_Prof]

Heh! The rich have managed to get us to turn on each other again I see. Like ahem! Those barking things squabbling over scraps. Never mind that the richest guy in America was recently flexing about how he pays 0$ in tax due to tax code. Think about that for a sec. 0$ on 300 billion $ of wealth. The entire tax credit is worth about $ 1.5 Billion right now!

This income limit is being put in deliberately to try and divide us. As is this $55,000 wagon limit almost certainly put in by a TSLA fan boi to damage Ford. There are no coincidences folks, hold your water, write you congressman and senator to change things. I certainly will. The system is built to work that way.

Very, very vivid imagination. Or, wait, is it very good insight?

 

[AiKiMache]

If the goal of this tax credit is to reduce the cost of EVs to make them more competitive with ICE then income caps don't make sense. But neither do the current tax credits since the majority of Americans do not pay $12,500+ in federal income tax and don't qualify for the full credit. There is effectively a "lower income cap" for this credit no one talks about (and yes, those people buy cars, but they also have things like mortgages and kids to reduce tax liability, or have assets but lower income). The credit allows the manufactures to keep the prices HIGH (advertising the "after rebate" cost) while still pricing the majority of car buyers out of EVs. If you really want to encourage transition to EVs regardless of economic class, then some system directly rebating at the time of purchase (instead of a credit against tax liability with income limits) would be more effective.

 

[onepunch]

This rebate is not about "social justice", privilege and other bs. It is simply to make it easier for manufacturers to sell EVs. Income limit is just an attempt to save a little money for the budget. The idea is that for people who are above this limit would not take that credit into consideration when choosing a car.

I'm fortunate enough to be one of the people who would not qualify for the tax credit under the proposed income caps. But I can ASSURE you, myself, and most people of means that I know, DEFINITELY take tax credits into consideration when purchasing normal everyday transportation.

Why wouldn't we care about it? Do you think we enjoy paying $12,500 more than the next guy for the EXACT SAME CAR? Do you find that to be fair?

 

[TGIF]

I still can't get over the post arguing luxury vehicles deserve tax credits by saying he's in the market for Audis and Volvos, not Hondas. Sounds like you need to live within your means.

The purpose of the tax credit is to subsidize EV purchases for those that otherwise can't afford to do so. If you're cross-shopping $60-70k cars, I think you don't need to worry about a tax cut. Of course, there are better ways to determine what's reasonable for a financial lifestyle than just income and vehicle price, especially given cost of living, but it's hard to think of one that's realistic to implement given the ability to enforce tax code.

I don’t think the purpose is to just subsidize EV purchases but also to incentivize EV purchases. There is a balancing of competing interests. It will never be perfect.

 

[Fighton]

When singled out and asked to pay ~20% premium for a car, I would guess most rational people would think about alternatives.

 

[Jimrpa]

Well yeah, except there is a big difference between earning $300k in NY, LA, SF, etc., and Cleveland. The cost of living is never considered.

Nobody is “forced” to live in NY, LA, and/or SF, especially in a post-COVID world - Even Elon Musk moved to Texas (runs away and ducks behind a big EA charger to avoid all the eggs and rotten tomatoes! ????????????????)

 

[Maquis]

If the goal of this tax credit is to reduce the cost of EVs to make them more competitive with ICE then income caps don't make sense. But neither do the current tax credits since the majority of Americans do not pay $12,500+ in federal income tax and don't qualify for the full credit. There is effectively a "lower income cap" for this credit no one talks about (and yes, those people buy cars, but they also have things like mortgages and kids to reduce tax liability, or have assets but lower income). The credit allows the manufactures to keep the prices HIGH (advertising the "after rebate" cost) while still pricing the majority of car buyers out of EVs. If you really want to encourage transition to EVs regardless of economic class, then some system directly rebating at the time of purchase (instead of a credit against tax liability with income limits) would be more effective.

You’re mixing up points between the current tax law and the proposed BBB version.
The current credit is $7500 and non refundable - you have have at least a $7500 tax liability to get full benefit.
The BBB as it’s currently written (at least as of 3 days ago), will allow up to a $12500 credit, but that is refundable. Those with a lower tax liability would get a payment for the difference.
Source: Cnet

 

[Jimrpa]

Heh! The rich have managed to get us to turn on each other again I see. Like ahem! Those barking things squabbling over scraps. Never mind that the richest guy in America was recently flexing about how he pays 0$ in tax due to tax code. Think about that for a sec. 0$ on 300 billion $ of wealth. The entire tax credit is worth about $ 1.5 Billion right now!

This income limit is being put in deliberately to try and divide us. As is this $55,000 wagon limit almost certainly put in by a TSLA fan boi to damage Ford. There are no coincidences folks, hold your water, write you congressman and senator to change things. I certainly will. The system is built to work that way.

I’m confused - who’s the “richest guy in America” this week? It changes so often I can’t keep track (and to be honest, I really don’t care - it’s sort of juvenile, like the dude who was complaining about scuffing up his Mustang Mach E door panels because his “feet” (yeah, sure “feet”, right - that’s what they ALL say on the social apps) are too big?)

 

[carbonizedbrett]

Why wouldn't we care about it? Do you think we enjoy paying $12,500 more than the next guy for the EXACT SAME CAR? Do you find that to be fair?

Fair?

We're talking about cars, right? Historically the consumer good with greatest variation in pricing - for the exact same item - from customer to customer.

Even at the same dealership, never mind regional manufacturer incentives as well as regional and/or seasonal supply & demand factors. Never mind folks with lower income and poorer credit who pay more to buy a car than Mr. Fico 834.

Fair? ?

 

[devmach-e]

If the goal of this tax credit is to reduce the cost of EVs to make them more competitive with ICE then income caps don't make sense. But neither do the current tax credits since the majority of Americans do not pay $12,500+ in federal income tax and don't qualify for the full credit. There is effectively a "lower income cap" for this credit no one talks about (and yes, those people buy cars, but they also have things like mortgages and kids to reduce tax liability, or have assets but lower income). The credit allows the manufactures to keep the prices HIGH (advertising the "after rebate" cost) while still pricing the majority of car buyers out of EVs. If you really want to encourage transition to EVs regardless of economic class, then some system directly rebating at the time of purchase (instead of a credit against tax liability with income limits) would be more effective.

You'll need to define what you mean by the "majority of Americans". Is it 50.1% of all Americans? Single payers? Married couples filing jointly? Tax data shows that the people who can most afford to buy a $45K to $60K car in the first place paid over $15K in federal income taxes. I was always told that a new car shouldn't cost more than about 1/4 to 1/3 of someone's annual salary, especially if financing. Might be able to get away with 40%, but that would be pushing it.

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