7500 EV tax credit update with new bill

[whywar]

As currently written:

1. Credit applies for vehicles purchased beginning January 1, 2023. (Page 386, line 1).
2. Transition provision for EVs with written sales orders dated in 2022 prior to the date of President signing the bill but delivered in 2023 allows purchaser to claim the “old” credit in 2023. (Page 386, line 20).

 

[noobzilla]

This is the right approach. It’s about making EVs accessible to those who might not be able to afford one and would have bought a gas powered vehicle instead. I doubt many Lucid customers would have said “oh, without the $7500 tax credit, I’ll buy a gas powered S-class instead”.

Yes, agreed. From a limited pool of budget it's better to distribute it to the masses for wider and faster implementation of EV. Means more charging infrustructure for us.

Wont be this year, likely not next year either.. could be as late as 2025 to give automakers time to adjust their pricing and strategies.

Im praying earliest 2024

As currently written:

1. Credit applies for vehicles purchased beginning January 1, 2023. (Page 386, line 1).
2. Transition provision for EVs with written sales orders dated in 2022 prior to the date of President signing the bill but delivered in 2023 allows purchaser to claim the “old” credit in 2023. (Page 386, line 20).

Well here's the answer. Thanks for finding this

 

[Ksa23]

The bill was written over a year ago I believe, so I'm betting that 2023 date will be amended.

 

[noobzilla]

As currently written:

1. Credit applies for vehicles purchased beginning January 1, 2023. (Page 386, line 1).
2. Transition provision for EVs with written sales orders dated in 2022 prior to the date of President signing the bill but delivered in 2023 allows purchaser to claim the “old” credit in 2023. (Page 386, line 20).

Crap, prior to the President signing. I wonder if I can ask Lucid and I can deposit/purchase an Air now and then fully pay in 2023. If I claim old credit in 2023 that should go towards 2023 tax right?

 

[Yugi]

More text

New Vehicle Credit

1. Manufacturer caps eliminated. (Page 370, line 15)
2. Credit applies for vehicles purchased beginning January 1, 2023. (Page 386, line 1).
3. Transition provision for EVs with written sales orders dated in 2022 prior to the date of President signing the bill but delivered in 2023 allows purchaser to claim the “old” credit in 2023. (Page 386, line 20).
4. Vehicle must be assembled in North America to qualify for new credit. (Page 366, line 15).
5. North American assembly requirement applies to vehicles sold after the date of adoption of the bill. (Page 386, line 3)
6. $7,500 credit is broke into two binary pieces meaning the vehicle either qualifies for each piece of the credit or it doesn’t. No longer based on size of battery. (Page 366, line 6)
7. $3,750 of the new credit is based upon the vehicle having at least 40% of its battery critical minerals from the United States or countries with a free trade agreement with the United States. This is a list of countries with free trade agreements with the US.(Page 371)
8. The other $3,750 of the new credit is based on at least 50% of the battery components of the vehicle coming from the United States or countries with a free trade agreement with the US. (Page 372, line 13)
9. The 40% minerals requirement increases to 50% in 2024, 60% in 2025, 70% in 2026 and 80% in 2027. (page 371 line 23)
10. The 50% battery components requirement increases to 60% in 2024, 70% in 2026, 80% in 2027, 90% in 2028 and 100% in 2029. (Page line 373)
11. The government has until the end of the year to develop guidance on the battery requirements. (Page 374)
12. Beginning in 2025, any vehicle with battery minerals or components from a foreign entity of concern are excluded from the tax credit. (Page 374, line 20).
13. One credit per vehicle. (Page 375, line 12)
14. Modified gross income limit of $150k for individuals, $225k for head of household, and $300k for joint returns. Definition of MAGI (page 375, line 22)
15. MSRP of vehicle must be $80k or less for SUVs, Vans and Trucks. $55k for all other vehicles. (Page 377, line 4)
16. Dealer can apply credit at time of sale. Dealer must disclose to buyer the MSRP of the vehicle, the applicable tax credit amount and the amount of any other available incentive applicable to the purchase. (Page 378, line 6)
17. Credit terminates December 31, 2032.

 

[Bobby]

I would think that anyone who could afford a Air would have a income limit above any tax credit program. This isn’t a poor persons car….

The current $7500 credit is not income–tied.

 

[LCIDdreams]

maybe this will entice Lucid to release a model for less than $55,000.

They are working on a smaller car so this will certainly give them a price target to design too.

SUV limit is $80k but I can’t see them bringing the Gravity below that.

 

[LCIDdreams]

Wont be this year, likely not next year either.. could be as late as 2025 to give automakers time to adjust their pricing and strategies.

Expectation is this will be signed into law before end of year and apply beginning 2023.

Of course this will all be derailed if any other dems have issues with provisions in the bill (Sinema?)

 

[LCIDdreams]

The bill was written over a year ago I believe, so I'm betting that 2023 date will be amended.

This is a new bill that is fresh.

 

[noobzilla]

Just emailed my agent if it's possible to "purchase" an Air now with some non refundable amount but not full price

 

[Spin Doctor]

Just emailed my agent if it's possible to "purchase" an Air now with some non refundable amount but not full price

That would be ideal!

 

[DBV]

I think this bill is a big mistake. We should not be offering incentives to buy an EV. Iif we do then any manufacturer that wants to participate should not be allowed to raise prices then, as would defeat the whole purpose of the incentive.

Congress continues to just throw money away, that we don’t have. This bill, the chip bill (makes no sense that a highly profitable company like an Intel gets free money, when they are already building chip factories in the US, like in Columbus, OH and getting State tax incentives/abatements to do it). Just don’t get it and don’t get why the American public does not get furious about wasting money. Guess people have gotten used to freebies on everything.

 

[Yugi]

I think this bill is a big mistake. We should not be offering incentives to buy an EV. Iif we do then any manufacturer that wants to participate should not be allowed to raise prices then, as would defeat the whole purpose of the incentive.

Congress continues to just throw money away, that we don’t have. This bill, the chip bill (makes no sense that a highly profitable company like an Intel gets free money, when they are already building chip factories in the US, like in Columbus, OH and getting State tax incentives/abatements to do it). Just don’t get it and don’t get why the American public does not get furious about wasting money. Guess people have gotten used to freebies on everything.

Government gives subsidy on gas prices, so why not tax credit to EVs?

This bill adds more restrictions in terms of price cap, gross salary, US manufactured etc. which will limit many cars & people.

 

[Ksa23]

I think this bill is a big mistake. We should not be offering incentives to buy an EV. Iif we do then any manufacturer that wants to participate should not be allowed to raise prices then, as would defeat the whole purpose of the incentive.

Congress continues to just throw money away, that we don’t have. This bill, the chip bill (makes no sense that a highly profitable company like an Intel gets free money, when they are already building chip factories in the US, like in Columbus, OH and getting State tax incentives/abatements to do it). Just don’t get it and don’t get why the American public does not get furious about wasting money. Guess people have gotten used to freebies on everything.

Where is your outrage over $5 trillion in oil/gas subsides in the last 10 years? Whenever the EV sector gets any kind of well deserved investment, you can always count on an oil baron to knock it down.

Edit: global subsidies around that amount, not just US

 

[Maverick]

Given that the legislative landscape is likely to look a lot different in 2023 or even the post-election portion of 2022, if this bill is going to pass, it will pass in the next couple months. Now maybe they push the EV start date to 2024, but I doubt it. Manchin is expressly against any sort of credit, so a compromise of eliminating the credit for the wealthy purchasing they're overpriced $55k+ sedans probably happens sooner than later. If the provision holds true that a valid sales order counts towards the deadline regardless of a later than 1/1/23 delivery, I would bet that Lucid comes up with a sales push to make sure that people can take advantage (along with a completely coincidental improvement in overall sales for Q3.

 

[DBV]

Government gives subsidy on gas prices, so why not tax credit to EVs?

This bill adds more restrictions in terms of price cap, gross salary, US manufactured etc. which will limit many cars & people.

It has to stop. People need to put their foot down and let the competition dictate the market. People with the above type of attitude is what keeps it going and going.

And their is nothing in the bill to stop the manufacturer from raising prices and then making the rebate worthless. So the manufacture becomes more profitable, potentially because of this tax rebate and not the consumer. The whole thing is mess. EV’s do not need incentives. If they are meant to succeed then the market will dictate that. That is what the US is supposed to be. A free market, competitive system. Otherwise we will just become a socialist society and are getting closer to that every year, as people take the above attitudes.

Not only that we are in the highest inflation era since late 70’s and early 80’s and can not afford to be doing these types of Climate/Chip bills. All this will make inflation worse.

 

[Spin Doctor]

... Otherwise we will just become a socialist society and are getting closer to that every year ...

Something with which, as a good European, I would be absolutely delighted - if it were actually true. Universal healthcare, free education, sensible gun laws, a proper safety-net for the less fortunate, and a fair, progressive tax regime that raises proportionately more revenue from the grotesquely wealthy rather than penalizing those already on the margins? Sign me up Sadly, successive regimes over here have accentuated the inequalities, not reduced them.

But we digress ... I still want a $7,500 kickback from the IRS when I buy my Pure

 

[DeaneG]

....This bill, the chip bill (makes no sense that a highly profitable company like an Intel gets free money, when they are already building chip factories in the US, like in Columbus, OH and getting State tax incentives/abatements to do it). Just don’t get it and don’t get why the American public does not get furious about wasting money. Guess people have gotten used to freebies on everything.

Foreign governments heavily subsidize their chip industries as they are cornerstones to a country's technology and know-how, and essential to a competitive military. Other countries are arguably farther ahead of the USA in some key aspects of chip manufacturing. Can't let that happen unless we want to be controlled by those other countries.

 

[cardiacTom]

if you placed an order doesn't this count as a 2022 order? My deposit is no longer refundable. And yes, the $7500 matters to me. Could I afford it without it? Yes, but increasing the price by 7500 makes a difference and this will kill Lucid, assuming Lucid also meets the other requirements.
How many Tesla sedans are under 55K? Even the model 3 long range is over this.
These types of bills make me mad, because Chevy is all constructed in Mexico. Does the Bolt still qualify and the Tesla and Lucid don't??

 

[EricM]

if you placed an order doesn't this count as a 2022 order? My deposit is no longer refundable. And yes, the $7500 matters to me. Could I afford it without it? Yes, but increasing the price by 7500 makes a difference and this will kill Lucid, assuming Lucid also meets the other requirements.
How many Tesla sedans are under 55K? Even the model 3 long range is over this.
These types of bills make me mad, because Chevy is all constructed in Mexico. Does the Bolt still qualify and the Tesla and Lucid don't??

Incorrect. All Chevy Bolts are built at GM’s Orion plant in Michigan.