EVs and the new climate bill

[Anonymous]

We are looking to get an ioniq5 but probably can’t get one for a month or 2. Are we screwed by the new bill since we make more than $300k? Seems like without the new bill we would get the $7500 tax credit and now we’re going to lose it?

[Anonymous]

This article lays out the details. Big changes coming to the federal credit.

https://www.caranddriver.com/news/a40760444/electric-car-ev-incentives-legislation/

If you are upper income, you should try to buy one quickly to still get the credit.

[Anonymous]

Anyone know when the change would start? Is it as soon as the legislation becomes law, or is there a start date?

[Anonymous]

Same. We make under 300k and were planning to buy an Ioniq5 next year. I am trying to figure out if the Ioniq5 would still be eligible for the credit (since it is limited to cars manufactured in the US or a country with a free trade agreement).

[Anonymous]

Same! The way I'm reading the bill, you have to have the "written binding contract" before POTUS signs the bill into law, which may very likely be in August. And what qualifies as a "written binding contract"? There is pretty much nothing available to buy right now, so you have to "reserve" a vehicle and wait however many months. And this "reservation" only "costs" like $100 in some cases. I don't know that it qualifies as a "written binding contract." We haven't reserved anything yet, and what about all the people who have orders and were counting on the $7500 tax credit, but then their orders don't qualify as a "written binding contract" and they are above the new income caps, so they are just screwed?

(l) TRANSITION RULE.—Solely for purposes of the application of section 30D of the Internal Revenue Code 22 of 1986, in the case of a taxpayer that— (1) after December 31, 2021, and before the date of enactment of this Act, purchased, or entered into a written binding contract to purchase, a new qualified plug-in electric drive motor vehicle ... and (2) placed such vehicle in service on or after the date of enactment of this Act, such taxpayer may elect (at such time, and in such form and manner, as the Secretary of the Treasury, or the Secretary’s delegate, may prescribe) to treat such vehicle as having been placed in service on the day before the date of enactment of this Act."

[Anonymous]

It's all speculative at this point.

[Anonymous]

Anonymous wrote:This article lays out the details. Big changes coming to the federal credit.

https://www.caranddriver.com/news/a40760444/electric-car-ev-incentives-legislation/

If you are upper income, you should try to buy one quickly to still get the credit.

Wish I could buy one quickly... there are none to be found anywhere right now.

[Anonymous]

why should you get a tax credit with that income?

[Anonymous]

Well that's a totally different question. It's available now, and the question is how to take advantage of that - not whether someone "should" get the benefit or not.

Another thought for those who might go above the income cap - lease the car and get the $7,500 passed on to the lease from the manufacturer (which someone of them, like WV, are doing)

[Anonymous]

Anonymous wrote:We are looking to get an ioniq5 but probably can’t get one for a month or 2. Are we screwed by the new bill since we make more than $300k? Seems like without the new bill we would get the $7500 tax credit and now we’re going to lose it?

OMG poor you. LOL

[Anonymous]

I will be interested to see how this effects EV prices. You have to figure the tax credit is factored into the price. Will demand fall enough that manufacturers are pushed to reduce prices, or is there enough demand even without the credit for high earners? Will be interesting to see. I plan to buy an EV in the fall, but might put it off for a few more months to see what happens to prices.

[Anonymous]

Anonymous wrote:I will be interested to see how this effects EV prices. You have to figure the tax credit is factored into the price. Will demand fall enough that manufacturers are pushed to reduce prices, or is there enough demand even without the credit for high earners? Will be interesting to see. I plan to buy an EV in the fall, but might put it off for a few more months to see what happens to prices.

It benefits Musk because new Teslas didn’t qualify under the old rules. This hurts his competition.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I will be interested to see how this effects EV prices. You have to figure the tax credit is factored into the price. Will demand fall enough that manufacturers are pushed to reduce prices, or is there enough demand even without the credit for high earners? Will be interesting to see. I plan to buy an EV in the fall, but might put it off for a few more months to see what happens to prices.

It benefits Musk because new Teslas didn’t qualify under the old rules. This hurts his competition.

It benefits Toyota and GM too and will benefit Ford soon enough. If other companies want the benefit, they can manufacture in the US.

[Anonymous]

Anonymous wrote:Same! The way I'm reading the bill, you have to have the "written binding contract" before POTUS signs the bill into law, which may very likely be in August. And what qualifies as a "written binding contract"? There is pretty much nothing available to buy right now, so you have to "reserve" a vehicle and wait however many months. And this "reservation" only "costs" like $100 in some cases. I don't know that it qualifies as a "written binding contract." We haven't reserved anything yet, and what about all the people who have orders and were counting on the $7500 tax credit, but then their orders don't qualify as a "written binding contract" and they are above the new income caps, so they are just screwed?

(l) TRANSITION RULE.—Solely for purposes of the application of section 30D of the Internal Revenue Code 22 of 1986, in the case of a taxpayer that— (1) after December 31, 2021, and before the date of enactment of this Act, purchased, or entered into a written binding contract to purchase, a new qualified plug-in electric drive motor vehicle ... and (2) placed such vehicle in service on or after the date of enactment of this Act, such taxpayer may elect (at such time, and in such form and manner, as the Secretary of the Treasury, or the Secretary’s delegate, may prescribe) to treat such vehicle as having been placed in service on the day before the date of enactment of this Act."

We put down a deposit on a Mach E in late 2021. We received a piece of paper that laid out the price. By the time that we got the car this spring, the price on the sticker had increased. We still paid exactly what was on the piece of paper that went with our deposit.

I am to sure whether it was Ford or the law holding the dealership to this piece of paper. I heard on a car forum that Ford was paying the difference to the dealer but our salesperson denied it.

[Anonymous]

Anyone seeing Sinema's tweaks? I saw a rumor online it's now a max $12,500 credit and the caps are gone. Anyone else seeing something similar?