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EV tax credit increased from 7.5k to 10k??

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Any comments?
White House annouces $4.7B effort for advanced-technology vehicles, including EV Everywhere

Does this increase apply toward tesla model s?


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It's a big week for compressed natural gas vehicles, thanks to President Obama's announcement today that his administration wants to increase federal support for CNG automobiles by introducing a tax credit similar to the one in place for plug-in vehicles. Plug-in vehicles, too, could get a big boost – and a double-whammy at that – with the current tax credit exchanged for a point-of-sale rebate and an increase in the maximum value from $7,500 to $10,000. The President made the announcement today at a Daimler Trucks North America plant in North Carolina.
 
Over the years, I have noticed that Congress has very little trouble spending money under the guise of benefiting their constituents, espescially during an election year.

-- Ardie
 
There are some interesting details to this that, depending on reaction from Congress and the general political climate, may cause me to use my "one time deferral" in taking my Model S delivery. In particular:

The President proposes to improve the current tax credit for electric vehicles by
  • Expanding eligibility for the credit to a broader range of advanced vehicle technologies;
  • Increasing the amount from $7,500, making it scalable up to $10,000;
  • Reforming the credit to make it available at the point-of-sale by making it transferable to the dealer or financier, allowing consumers to benefit when they purchase a vehicle rather than when they file their taxes; and
  • Removing the cap on the number of vehicles per manufacturer eligible for the credit and, instead, ramping down and eventually eliminating the credit at the end of the decade.

 
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Suppose:
a. This bill passes, or at least the part re EV credits and,
b. You have the option of taking delivery from Tesla in 2012, or delaying until 2013 using your one-time deferral, thereby getting an extra $2500.

Would you choose to defer and save $2,500, or take delivery this year?
 
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Interesting dilemma you pose, I suspect those with early production slots such as AnOutsider would take delivery, however those with production slots in the November/December might be a little more circumspect and delay to January 1st!.
 
Aside from the increase from $7,500 to $10,000, would a point-of-sales rebate decrease sales taxes, for states that have them, in comparison to the current tax credit?

In other words, currently the sales tax is calculated based on the gross price. Under this proposal the rebate would be subtracted before sales taxes are calculated?

Larry
 
Aside from the increase from $7,500 to $10,000, would a point-of-sales rebate decrease sales taxes, for states that have them, in comparison to the current tax credit?

In other words, currently the sales tax is calculated based on the gross price. Under this proposal the rebate would be subtracted before sales taxes are calculated?

Larry

I would think that it would, since they're calling it a "rebate". My recollection is that "normal" dealer rebates are before sales tax, right? If this is true, it's more than a $2500 savings.
 
I think it's an smart political tact by Obama to remove the objections to the EV tax credit by expanding it to include CNG powered cars - that will shut Fox and Co. up, since they promote fracking for natural gas.

And since there's only one mass-produced CNG car in the US, it won't change much short-term except to help Volt and Leaf and Ford Focus EV sales.
 
@Zachster - Is it just the additional $2500 that doesn't apply, or the full proposal? I've only read the press release and didn't see that distinction listed there - is there a location to view the full proposal?

Sure thing. Though we have a LONG way to go before anything becomes final at this point.

Here is the most relevant portion (with a link to the entire Green Book, see page 32,33 for the entire section):

Proposal
The proposal would replace the credit for plug-in electric drive motor vehicles with a credit for advanced technology vehicles. The credit would be available for a vehicle that meets the following criteria: (1) the vehicle operates primarily on an alternative to petroleum; (2) as of the January 1, 2012, there are few vehicles in operation in the U.S. using the same technology as such vehicle; and (3) the technology used by the vehicle exceeds the footprint based target miles per gallon gasoline equivalent (MPGe) by at least 25 percent. The Secretary of the Treasury, in consultation with the Secretary of Energy, will determine what constitutes the same technology for this purpose. The credit would be limited to vehicles that weigh no more than 14,000 pounds and are treated as motor vehicles for purposes of title II of the Clean Air Act. In general, the credit would be the product of $5,000 and 100 and the amount by which the vehicle’s footprint gallons per mile exceeds its gallons per mile, but would be capped at $10,000 ($7,500 for vehicles with an MSRP above $45,000). The credit for a battery-powered vehicle would be determined under current law rules for the credit for plug-in electric drive motor vehicles if that computation results in a greater credit. The credit would be allowed to the person that sold the vehicle to the person placing the vehicle in service (or, at the election of the seller, to the person financing the sale), but only if the amount of the credit is disclosed to the purchaser.
The credit would be allowed for vehicles placed in service after the date of enactment and before January 1, 2020. The credit would be limited to 75 percent of the otherwise allowable amount for vehicles placed in service in 2017, to 50 percent of such amount for vehicles placed in service in 2018, and to 25 percent of such amount for vehicles placed in service in 2019.

Here is the Treasury Dept. link, click on the FY 2013 proposal

Honestly the best thing to come out of this proposal is not the additional $2,500 credit some under $45K BEV's might get, it's the shift of a buyer's credit to a seller's credit. Basically converting a tax credit to a point-of-sale discount that all consumer can fully realize at the time of purchase. Provided automakers/dealers pass along this savings to customers this is GREAT news and I hope the idea stays in tact.
 
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Sure thing. Though we have a LONG way to go before anything becomes final at this point.

Here is the most relevant portion (with a link to the entire Green Book, see page 32,33 for the entire section):



Here is the Treasury Dept. link, click on the FY 2013 proposal

Honestly the best thing to come out of this proposal is not the additional $2,500 credit some under $45K BEV's might get, it's the shift of a buyer's credit to a seller's credit. Basically converting a tax credit to a point-of-sale discount that all consumer can fully realize at the time of purchase. Provided automakers/dealers pass along this savings to customers this is GREAT news and I hope the idea stays in tact.

+1. It still marks a better deal than we had 2 days ago. Let's hope the state incentives follow suit!