November 3rd 2021 Revised Tax incentives for EVs from House of Reps.

[Sealevel]

I haven't completely worked out how the $7500 incentive works, or if I'll get it. Now I'm even more confused! I guess I need to think about it being a huge "icing on the cake" scenario. I've put in an order for an awesome car. If I get an incentive, great!

I like the way you think - mostly because I also think that way and have ordered the same model! I chose the grey interior over the black, what did you choose?

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[ChuckA]

Pull out your last year's tax return. Look at the number on line 24 (back of the form). Assuming last year and this year are identical, if that number is $7,500 or more, you're all set. If it's say $3,000, then you're going to give up $4,500 of the credit.

It's not an incentive (technically). It's a non-refundable tax credit.

Or convert IRA’s to a Roth IRA to increase the tax liability. You can do multiple Roth IRA conversions in a year (by 12/31). To get a $4500 tax liability if your federal effective tax is 22%, it will take approximately a $20,500 Roth IRA conversion to increase your tax liability by $4500. Consult with your tax advisor.

 

[Larry Paul]

Think it falls under final MSRP not base.

Thank you but where does it state the basis in the wording?

MSRP of the base model (not including options)
MSRP of the base + options (total list price with options).
or
Total sale price of the car (Regardless of the list price, what it actually sells for).

However, if it states that it is not an SUV it is all moot.

According to this website it is classified as a “small station wagon”.

https://www.fueleconomy.gov/feg/Find.do?action=sbs&id=44798

So if that legislation passes as it is…it won’t qualify???

 

[mymache]

Or convert IRA’s to a Roth IRA to increase the tax liability. You can do multiple Roth IRA conversions in a year (by 12/31). To get a $4500 tax liability if your federal effective tax is 22%, it will take approximately a $20,500 Roth IRA conversion to increase your tax liability by $4500. Consult with your tax advisor.

That's the ticket.

 

[samev]

Well, the Democrats have been pretty open about their desire to expand the EV tax credit since winning the election last year.

It's not just investors who have paid attention, Tesla itself has too. Under the current proposal, many Teslas would qualify for $8,000 in tax credits ($7,500 for the car + $500 for American made battery). Take the Model Y LR for example - at its low, this vehicle started at $48,990 this year. It presently starts at $56,990 after a series of price hikes. That's a difference of - you guessed it - $8,000.

$9K now. MYLR price going up every time you blink. Fed tax credits should follow suit ...

 

[bp99]

$9K now. MYLR price going up every time you blink. Fed tax credits should follow suit ...

They have orders booked out six plus months from now. They have Hertz wanting 100,000 cars. They have far more demand than production capacity. Simple economics is to raise prices. They'll lose some demand, but so long as the demand remains above capacity, they're not giving up sales and they're increasing margin. They'd be silly not to raise prices.

It will be interesting to see how ramping up Texas and Germany production factors in. Although I wouldn't be surprised to see Fremont shutdown to re-tool once Texas is fully up.

As for new Fed tax credits, be careful what you wish for. There's so much other crap buried in that bill that no one (not even those voting on it) have had a chance to read. Just because the EV credits are something that appeals to many here, doesn't mean that the bill overall is a good thing to pass. All of us need to look beyond our one or two pet desires and look at the greater good/bad of the entire package. These enormous all encompassing bills are always bad ideas regardless of which party concocts them. Congress should be splitting things up rather than using popular nuggets as cover to pass pork, extreme political agendas and other things that would never have a chance on their own merits.

 

[OrchidMania]

I like the way you think - mostly because I also think that way and have ordered the same model! I chose the grey interior over the black, what did you choose?

I choose Premium cause of the seat color.

 

[Lord Polymath]

I like the way you think - mostly because I also think that way and have ordered the same model! I chose the grey interior over the black, what did you choose?

Grey, looks like we'll have twin cars!

 

[Rt1AWD]

I'd just like to point out again that despite the MME being advertised as an SUV, I'm pretty sure the government considers it a car (see: fueleconomy.gov go to Specs and scroll to EPA class size. it's a small station wagon which is classed as a car). So people with AWD and ER battery could end up missing out on this credit if I'm reading everything correctly.

Barely, but fits

 

[ChuckA]

They have orders booked out six plus months from now. They have Hertz wanting 100,000 cars. They have far more demand than production capacity. Simple economics is to raise prices. They'll lose some demand, but so long as the demand remains above capacity, they're not giving up sales and they're increasing margin. They'd be silly not to raise prices.

It will be interesting to see how ramping up Texas and Germany production factors in. Although I wouldn't be surprised to see Fremont shutdown to re-tool once Texas is fully up.

As for new Fed tax credits, be careful what you wish for. There's so much other crap buried in that bill that no one (not even those voting on it) have had a chance to read. Just because the EV credits are something that appeals to many here, doesn't mean that the bill overall is a good thing to pass. All of us need to look beyond our one or two pet desires and look at the greater good/bad of the entire package. These enormous all encompassing bills are always bad ideas regardless of which party concocts them. Congress should be splitting things up rather than using popular nuggets as cover to pass pork, extreme political agendas and other things that would never have a chance on their own merits.

I feel a $7500 tax credit is enough, why make it selectively to $12,500? I’d rather lift the 200,000 vehicle cap and make it available to all USA assembled cars. Bring MME production back to USA. Have Mexico assemble ICE cars. It won’t affect me since I already have my MME.

 

[Rt1AWD]

But frankly I think IRS will treat it as SUV. They don't need stupid lawsuits.

 

[Rt1AWD]

I feel a $7500 tax credit is enough, why make it selectively to $12,500? I’d rather lift the 200,000 vehicle cap and make it available to all USA assembled cars. Bring MME production back to USA. Have Mexico assemble ICE cars. It won’t affect me since I already have my MME.

Probably because it is more expensive to make cars in USA

 

[kennethjk]

But frankly I think IRS will treat it as SUV. They don't need stupid lawsuits.

Will depend party on the regs when they are written if this actually gets passed

 

[ChuckA]

Probably because it is more expensive to make cars in USA

“ Due to labor and benefit costs”. Understood, but I feel they should be USA made. We’re in this supply chain fiasco because production moved to Far East to reduce cost. The new Blue Oval battery factories will probably be non union.

 

[Maquis]

But frankly I think IRS will treat it as SUV. They don't need stupid lawsuits.

The way the bill is currently written, the IRS has no say in how vehicles are classified.

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