[BayouCityBob]

Have just been reading the text of the new law on EV tax credit. It is crazy complicated, but here are a few points:

• It excludes higher income people (over $300k family and over $150k single)
• It excludes more expensive vehicles ($55k car and $80k SUV/Truck)
• It removes the cap subject to the above limitations on companies that had previously used up all their credits.

That said, there are all sorts of weird effective date rules. It looks like:

• Income limits do not take effect until Jan 1 2023. " (1) IN GENERAL.—Except as provided in paragraphs (2), (3), (4), and (5), the amendments made. by this section shall apply to vehicles placed in service after December 31, 2022."
• With respect to the vehicle price limits: those will only apply to manufacturers who have already run through their 200k of original credits.

There are also tax credits of $4,000 for purchasing used EVs (makes no sense, but whatever, it's politics). This is limited to income of $150k family and $80k (I think) individual.

Dealers (I presume this also means OEMs for companies that do not use dealers but maybe not) can take the tax credit and give you a discount on the vehicle if the buyer chooses. Presumably this is to create a more immediate economic benefit for the sale.

Big takeaway: if you are a higher income person you better get your One order in NOW because your tax credit is disappearing at the end of next year! 🤣 (Subject to the obvious disclaimer that I may have read it wrong, I am not a tax professional, the law is not yet passed, and stuff changes at pretty random intervals in Washington.)

 

[LyfeSaver]

Can you post source? These provisions are significant revisions to 2022 in-effect legislation. I cannot find anything online regarding 2023 updates.

 

[MTN Ranger]

Senate moves forward with EV tax credit reform; Tesla (TSLA) to be included back and more

The US Senate is going to move forward with a sweeping new bill after Senator Joe Manchin finally accepted to...

electrek.co

• Federal tax credit for EVs maintained at $7,500
  • Eliminates tax credit cap after automakers hit 200,000 EVs sold, making GM and Tesla once again eligible
  • The language in the bill indicates that the tax credit would be implemented at the point of sale instead of on taxes.
  • In order to get the full credit, the electric vehicle needs to be assembled in North America, the majority of battery components need to come from North America, and contain a certain percentage of minerals from countries with free trade agreements with the US. (This is the most concerning)

 

[voxel]

Can you post source? These provisions are significant revisions to 2022 in-effect legislation. I cannot find anything online regarding 2023 updates.

https://www.democrats.senate.gov/imo/media/doc/inflation_reduction_act_of_2022.pdf

 

[voxel]

Federal tax credit for EVs maintained at $7,500

• • Eliminates tax credit cap after automakers hit 200,000 EVs sold, making GM and Tesla once again eligible
  • The language in the bill indicates that the tax credit would be implemented at the point of sale instead of on taxes.
  • In order to get the full credit, the electric vehicle needs to be assembled in North America, the majority of battery components need to come from North America, and contain a certain percentage of minerals from countries with free trade agreements with the US. (This is the most concerning)

Pretty much setup so Hyundai, Kia, etc. will be forced to move their EV production to US free trade countries or the US itself.

 

[MTN Ranger]

Man, this was tough to track down. Starts on page 366.

DocumentCloud

www.documentcloud.org

 

[Bill Tatun]

It’s a bill not a law at this point. The thread subject is a bit misleading.

 

[ToddH65]

@MTN Ranger does that last bullet mean Fisker would not be eligible for full credit? That is a significant shift from the prior bill. That was included to get the additional credit $4500 credit and I believe to extend the credit beyond like 2027/28 (5 years). Will definitely be following this.

 

[TeslaYperformance]

@MTN Ranger does that last bullet mean Fisker would not be eligible for full credit? That is a significant shift from the prior bill. That was included to get the additional credit $4500 credit and I believe to extend the credit beyond like 2027/28 (5 years). Will definitely be following this.

hmmm, lets see, where does Fisker make their trucks....
and yes, I thought it was supposed to go to like $10,000 credit, but guess not

 

[BayouCityBob]

Can you post source? These provisions are significant revisions to 2022 in-effect legislation. I cannot find anything online regarding 2023 updates.

Sorry I should have done that. (Was late!) Here it is, provisions on EVs start ~ page 360 or so, you will need to also have the IRS Act of 1986 open since they cross reference. DocumentCloud

 

[BayouCityBob]

@MTN Ranger does that last bullet mean Fisker would not be eligible for full credit? That is a significant shift from the prior bill. That was included to get the additional credit $4500 credit and I believe to extend the credit beyond like 2027/28 (5 years). Will definitely be following this.

My reading of this is that there is a phase in period for any of these changes. (There are also a bunch of provisions re sustainably sourced batteries.) So Fisker should be fine at least for next year.

 

[TeslaYperformance]

so to get this tax credit, you have to buy the vehicle after its passed as law, or is it retroactive for this year 2022?...

 

[BayouCityBob]

so to get this tax credit, you have to buy the vehicle after its passed as law, or is it retroactive for this year 2022?...

For any credits available today, they are still available as-is. For new credits on Teslas or GM etc., the start date (I think, and it is very convoluted) will in general be when the legislation passes.

 

[BayouCityBob]

It’s a bill not a law at this point. The thread subject is a bit misleading.

Sorry. Fixed it. Was late

 

[lukazojr]

One of the good points on this if it does actually pass in the Senate is that it is a Point of Sale rebate and not a tax credit per se. But to qualify the vehicle needs to be made in USA or the US free trade countries. So looks like more people will be able to afford to get EVs once again even with the price hikes.

 

[voxel]

My reading of this is that there is a phase in period for any of these changes. (There are also a bunch of provisions re sustainably sourced batteries.) So Fisker should be fine at least for next year.

No phase-in except the percentage related to battery components that go to 100% US + free trade countries by 2029.

In fact, once this is signed - it starts:

"North American assembly requirement applies to vehicles assembled after the date of adoption of the bill. Meaning if the bill is signed by President on December 1, 2022, a vehicle produced on December 2, 2022 and sold in 2023 would not qualify if assembled outside North America. Conversely, a vehicle assembled outside North America on November 30, 2022 but sold in 2023 would qualify. (Page 386, line 3)"


https://www.reddit.com/r/electricvehicles/comments/wa8viu

 

[ocsteve39]

But to qualify the vehicle needs to be made in USA or the US free trade countries

So we are out, I suppose.

 

[Jay]

So we are out, I suppose.

Looks that way. EU trade relations with United States

Despite the US being the EU’s largest trading partner, there is no dedicated free trade agreement between the EU and the US.

 

[TeslaYperformance]

not being able to get $7,500 rebate would be very detrimental to an Ocean purchase!!!

 

[S7davis]

But now that means the Government just helped Tesla out but they have to lower their prices to qualify. As the only vehicle that qualifies for this new tax credit is the Model 3 as the Model Y is over the 55k cap limit on new vehicle. Or Tesla will be releasing their smaller car sooner than expected as the credit ends in 2032. So we have only 10 years to use these rebates/credits.