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$7500 Tax Credit

Paladin732

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EV charging was in that infrastructure bill that Biden signed. This Build Back Venezuela plan is mostly welfare give away.

the BBB plan is, in general, pretty decent.

it undoes the SALT cap damage trump did (This unfairly penalizes certain states with high income tax)

The ev credit is annoying to us, but does help a lot of others (the union $4k is a hot issue, so I won’t touch that part)

It gives a lot of money to areas in need.

Yes, it also has pork in it, which pretty much any bill from either side are loaded with.

If you don’t agree with it, that’s fine. However, I don’t think calling it “Build Back Venezuela” is particularly mature.
 

Sandvinsd

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the BBB plan is, in general, pretty decent.

it undoes the SALT cap damage trump did (This unfairly penalizes certain states with high income tax)

The ev credit is annoying to us, but does help a lot of others (the union $4k is a hot issue, so I won’t touch that part)

It gives a lot of money to areas in need.

Yes, it also has pork in it, which pretty much any bill from either side are loaded with.

If you don’t agree with it, that’s fine. However, I don’t think calling it “Build Back Venezuela” is particularly mature.
SALT changes is a tax break for the wealthy... It you think the rich should pay their fair share, then you should oppose this (Full disclosure, I live in CA so it affects me). It also reduces the amount of tax money to actually PAY for all this spending.

the EV credit is union pork meant to pretty much solely benefit GM. if you want to put an income limit on who gets it, that is fine. But you should support all EV makers, not just your those of your union donors.

yes it gives a LOT of money for so called needs. However, we really can‘t afford to pay for what we are spending money on now, let alone a gaggle of new welfare programs. But what the hell, just put it on the credit card! By the way, I think I need to up our credit card limit

we both agree that every bill has pork. Boy I would love a line item veto! Care to work on an amendment? I love to find something we can agree on. That is a lost art in Washington.

well, aren’t we are being a little sensitive about it being Build Back Venezuela. Take it easy there with a little humor. .Nonetheless, that is what we are building if we continue down this path. Our inflation just hit a 40 year high. I remember the 70’s very well and I am not a fan of repeating it.
 

borski

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It also includes removing the cap on state and local tax (SALT) deductions. A big boon for the very wealthy. Overall it is a bad bill even if it includes support for charging infrastructure.

This is not about the “very wealthy” but about those folks living in high state-income-tax states. The current cap does not come close to covering state taxes for most people in states that tax income.
 

borski

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SALT changes is a tax break for the wealthy... It you think the rich should pay their fair share, then you should oppose this (Full disclosure, I live in CA so it affects me). It also reduces the amount of tax money to actually PAY for all this spending.

Saying it multiple times doesn’t make it true, no matter how many exaggerated and breathless articles one reads. The SALT cap change benefits anyone in a state that has a significant tax on income. The only reason it *happens* to benefit the wealthy more is because it benefits everyone who pays state tax, and the wealthy pay a lot more state tax than people with a lower income, as that’s how percentages work.

the EV credit is union pork meant to pretty much solely benefit GM. if you want to put an income limit on who gets it, that is fine. But you should support all EV makers, not just your those of your union donors.

This is an arguable point, and fraught with all sorts of issues. I agree with you on this, and I *like* unions for the most part. It’s not just GM, but really an attempt to get more workers unionized, which is where I honestly think we’re headed anyway.

yes it gives a LOT of money for so called needs. However, we really can‘t afford to pay for what we are spending money on now, let alone a gaggle of new welfare programs. But what the hell, just put it on the credit card! By the way, I think I need to up our credit card limit

This is commonly said, and rarely true. The tax provisions do pay for the bill. Moreover, we spend *far* too much on defense in a time when we are not at war. And I say this, with all respect, as someone who used to work in intelligence. The money exists

we both agree that every bill has pork. Boy I would love a line item veto! Care to work on an amendment? I love to find something we can agree on. That is a lost art in Washington.

Agreed. We need more moderates.

well, aren’t we are being a little sensitive about it being Build Back Venezuela. Take it easy there with a little humor. .Nonetheless, that is what we are building if we continue down this path. Our inflation just hit a 40 year high. I remember the 70’s very well and I am not a fan of repeating it.

Humor is fine, but in political conversations it is unnecessary and distracting when used to denigrate ideas. Calling pro life advocates “sexists” is a similar idea; all it does is harm the conversation. Be funny! That just didn’t land as a joke, I think. :)

We are not, and will never be, Venezuela. Social spending is not a “slippery slope.” Democrats, by and large, are not “socialists.” Republicans, by and large, are not “MAGA hat toting racists.” Some are, sure; but perhaps here we can be *slightly* more nuanced, I hope. :)

Have a nice day. :)
 

WildRide47

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Saying it multiple times doesn’t make it true, no matter how many exaggerated and breathless articles one reads. The SALT cap change benefits anyone in a state that has a significant tax on income. The only reason it *happens* to benefit the wealthy more is because it benefits everyone who pays state tax, and the wealthy pay a lot more state tax than people with a lower income, as that’s how percentages work.



This is an arguable point, and fraught with all sorts of issues. I agree with you on this, and I *like* unions for the most part. It’s not just GM, but really an attempt to get more workers unionized, which is where I honestly think we’re headed anyway.



This is commonly said, and rarely true. The tax provisions do pay for the bill. Moreover, we spend *far* too much on defense in a time when we are not at war. And I say this, with all respect, as someone who used to work in intelligence. The money exists



Agreed. We need more moderates.



Humor is fine, but in political conversations it is unnecessary and distracting when used to denigrate ideas. Calling pro life advocates “sexists” is a similar idea; all it does is harm the conversation. Be funny! That just didn’t land as a joke, I think. :)

We are not, and will never be, Venezuela. Social spending is not a “slippery slope.” Democrats, by and large, are not “socialists.” Republicans, by and large, are not “MAGA hat toting racists.” Some are, sure; but perhaps here we can be *slightly* more nuanced, I hope. :)

Have a nice day. :)
[/QUOT

The tax provisions do not pay for the bill. The Democrats who crafted this used gimmicks and false projections. An excellent article in the Wall Street Journal today laid out a line by line cost of this bill and the taxes that will be raised do not even come close to the amount needed. Manchin was waiting to hear back from the budget committee which is non partisan and when he heard back they stated the shortfall was even greater than even he expected.
 

Paladin732

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How about we table the politics of this?
We are not going to change anyone’s opinion on this thread of the politics. I only called out the Build Back Venezuela comment, as I view making fun of things by calling it incorrect names to be childish.

You are absolutely entitled to your own opinion in this issue as to whether the bill is a good or poorly planned piece of legislation. It is just not the most mature response to show your dissatisfaction by name calling.



As to the issue at hand on this thread, to summarize for all following:

  • All vehicles delivered this year from Lucid are eligible for the $7,500 credit
  • Next year is in the air. If BBB is passed before 12/31, we know their vehicles are too expensive for the credit
  • If BBB is passed after Jan 1: there is NO answer currently as to how buyers in 2022 will be treated. Legislators can opt to enact BBB retroactively to Jan 1(no buyers from Lucid would get the credit) or to the day they sign legislation(only a few buyers who had deliveries would get it), or to an unknown later date.
 
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Sandvinsd

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Per this article in the FAQ, the EV credit change will be after 12/31/21 or whenever it is passed. It would not be retroactive as to how it is currently written.

 

SaratogaLefty

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Does anyone yet know why the Lucid Air is not listed on the government website for eligible vehicles?
 

Lucken

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That’s been asked before and nobody seems to have a definitive answer.
 

Sandvinsd

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Lucken

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Yes, that’s been the case for Manchin thus far. However he’s done this before with other bills, only to fold in the end. So I’m not convinced this is over yet. The pressure he endures from the left is enormous, so let’s see how it ends. Fingers crossed he stays strong.
 

HC_79

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Just remember that this isn't a given. You don't get $7,500 instantly back on your tax return it's a credit that would cover any taxes owed

"The tax credit is just that — a tax credit. It’s a government policy that allows you to claim up to $7,500 in credit against the federal income taxes you owe in the year in which you buy the car. In other words, it reduces your tax liability. If you’re eligible for a refund, you’ll get whatever the amount of your credit on top of that.

Buyers must still pay the price they negotiate for the car (whether paying it in cash or folding it into the loan amount). They can then claim the credit the next time they file their taxes. That credit lowers your tax liability. If your tax bill is lower than the credit, you’ll receive the balance as a refund. However, you can’t roll that credit or any remaining balance into the next tax year."

Unless i'm understanding it wrong but unless you have a tax bill to pay the IRS then you won't get this credit.
 

Hoosier Owner

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Just remember that this isn't a given. You don't get $7,500 instantly back on your tax return it's a credit that would cover any taxes owed

"The tax credit is just that — a tax credit. It’s a government policy that allows you to claim up to $7,500 in credit against the federal income taxes you owe in the year in which you buy the car. In other words, it reduces your tax liability. If you’re eligible for a refund, you’ll get whatever the amount of your credit on top of that.

Buyers must still pay the price they negotiate for the car (whether paying it in cash or folding it into the loan amount). They can then claim the credit the next time they file their taxes. That credit lowers your tax liability. If your tax bill is lower than the credit, you’ll receive the balance as a refund. However, you can’t roll that credit or any remaining balance into the next tax year."

Unless i'm understanding it wrong but unless you have a tax bill to pay the IRS then you won't get this credit.
If by "tax bill" you mean the total of tax for that calendar year, then you are correct. But whether or not a taxpayer gets a refund or pays the amount due (total taxes owed minus taxes paid throughout the year) is irrelevant. Anyone who can afford $169K for a car will have a tax over $7500, and so everyone will get this credit.
 

Hoosier Owner

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So I have an additional question. I paid for my car in December, but did not get delivery until January 7. I assume I get the tax credit for the 2021 calendar year. Anyone know if that is correct? (I do not have a tax accountant -- crazy maybe, but my taxes are relatively easy to complete)
 

chris

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You are correct! We had a tax credit for our former Bolt (which we had to fight in an audit because the government insisted it wasn't a valid VIN when it was-- but that's another story).

I believe you have to make at least $85,000 to qualify for the full $7500 BUT totally depends on what taxes you paid. If you only paid $7000 in taxes, you only get a $7000 tax credit... but if you paid $8000 in taxes, you get a $7500 credit and still have to pay that $500. You also have to factor in other tax credits too!
 
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