Federal EV Tax Credit Preserved with Tax Reform- Signed into law 12/22/17

Brokedoc

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#1
*** PLEASE NOTE ***
This is a continuation of a previous thread that was CLOSED due to excessive political commentary. REFRAIN FROM POSTING YOUR POLITICAL VIEWS OR YOUR POST WILL BE DELETED BY THE MODERATORS. I am reviving this thread for the very important ramifications that need to be considered with the likely tax law changes .


So the U.S. House of Representatives just passed their version of tax reform and unfortunately, the $7500 Federal EV tax credit will end 1/1/2018 according to their version of the bill that was passed. The Senate still needs to pass their version and then the two versions need to be reconciled to become the final law but this does not bode well for anyone buying an EV after New Year.

A few things to consider: I previously was holding out for the AWD or standard battery version but I have since changed my preference in the hope that I can get a first production configuration before New Year and claim the tax credit.

If you have the financial ability to buy a Model S or X, you can still buy an inventory model and claim the tax credit but it is not likely that you can order a custom model and have it delivered before the end of the year (and you can PM me for a referral credit code for free charging). The price differential between a base Model S and a loaded Model 3 is less now with the tax credit disappearing.

Finally, It's still not too late to contact your state’s 2 US Senators to express your preference that they retain the EV tax credit as the law has not been finalized yet.

**edit - clarified US senators not state senators
 
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Petra

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#2
The game isn't over yet... If the senate bill containing the preserved tax credit passes (uncertain, which would grind the whole process to a halt for a while if it didn't), then the two bills have to go through a consolidation process done by the budget committees. The tax credit could be preserved in consolidation, but would likely require a barrage of calls to budget committee members. Once consolidation is complete, the resulting bill would get passed to the house and senate again for a final vote, which gives us two more chances to stop it.
 

Brokedoc

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The game isn't over yet... If the senate bill containing the preserved tax credit passes (uncertain, which would grind the whole process to a halt for a while if it didn't), then the two bills have to go through a consolidation process done by the budget committees. The tax credit could be preserved in consolidation, but would likely require a barrage of calls to budget committee members. Once consolidation is complete, the resulting bill would get passed to the house and senate again for a final vote, which gives us two more chances to stop it.
Yes, the game isn't over but the "fat lady" is warming up her vocal cords. The passage of the House bill is a big step.

I also imagine that the repeal of the EV tax credit will convince a lot of employees to change their reservations also and push back non-employee delivery dates....
 

slasher016

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#4
It's wait and see until we see the Senate bill again. The House had it last time, I don't think anyone was expecting it not to the 2nd time...
 

ng0

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#6
I just want to point out that if the federal tax credit is removed, it's very likely that some states (california for one) will implement their own tax credit to replace it. California lawmakers have proposed a $10k tax credit (currently it's $2500 based on income eligibility). If that passes, I'd guess that at least a few more states will do the same.
 

SoFlaModel3

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#7
Yes, the game isn't over but the "fat lady" is warming up her vocal cords. The passage of the House bill is a big step.

I also imagine that the repeal of the EV tax credit will convince a lot of employees to change their reservations also and push back non-employee delivery dates....
It's still a $14k jump if they're holding out for standard battery. Even with the credit that's a $6,500 jump if they weren't planning on it. I hope you're wrong (for our sakes)!
 

mtdoak

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#8
I personally think it (the tax cut) dies in the Senate. It can't make enough senators happy AND pass the budget required (less that 1.5 trillion over 10 years added to the debt) to get it through via 51 vote threshold.
 

Insaneoctane

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#9
If this is important to you then act. Only high volumes of people taking action will move the needle. Contact your US Senators and House representatives and make sure that they understand that their constituents want the EV credit kept in the code. This is a numbers game plain and simple. Be a loud number.
 

Brokedoc

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#10
If this is important to you then act. Only high volumes of people taking action will move the needle. Contact your US Senators and House representatives and make sure that they understand that their constituents want the EV credit kept in the code. This is a numbers game plain and simple. Be a loud number.
I completely agree that we need to make noise if we have any hope of saving the EV tax credit but all of the effort seems to be going into saving the State and Local Tax deduction which affects MANY more people than the EV credit. So many deductions are being cut I honestly don't think the EV credit will have any chance but we must try.
 

mtdoak

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#11
I completely agree that we need to make noise if we have any hope of saving the EV tax credit but all of the effort seems to be going into saving the State and Local Tax deduction which affects MANY more people than the EV credit. So many deductions are being cut I honestly don't think the EV credit will have any chance but we must try.
I think what we'll see is "X number of senators will vote no on the bill" and they'll try to pressure them via traditional means. The Senator from Nevada is the one who fought for the EV tax credit in the 1st revision of the Senate. Why? He has the worlds biggest battery factory in his backyard.

Nearly every senator is beholden to two groups: Their constituents and their Donors.

The key piece for the republicans is business tax change. That is keeping their donors (large businesses) happy. That's the piece that won't get touched. Every other piece is political capital that is subject to change before the final bill.

And remember, the bill won't be final until its at the president's desk to be signed. Even if the senate passes a bill with the EV credit in tact....it could be cut off when the Senate and House work to reconcile their versions.

Personally...I think it's too big of a change, too fast, trying to be shoved through. The margins for republicans are slim and there are more than a few R senators with nothing to lose in political capital. I'd be shocked if it got jammed through at this point.
 

tivoboy

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#16
I just want to point out that if the federal tax credit is removed, it's very likely that some states (california for one) will implement their own tax credit to replace it. California lawmakers have proposed a $10k tax credit (currently it's $2500 based on income eligibility). If that passes, I'd guess that at least a few more states will do the same.
CA is already in the late stages of this process and has been all year, I think we should know in the next couple weeks if it is going to pass the CA senate. As for the federal tax credit, I think in the end it stays probably for 2018-2019 but starts to be limited in 2019 and is gone in 2020.
 

Mattstyle

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#20
I just found this story...

https://www.reuters.com/article/usa...-swarm-u-s-congress-on-tax-bill-idUSL1N1NL1LW

In summary, the Electric Drive Transportation Association is urging congress to modify the current tax credit by eliminating the 200,000 vehicle per manufacturer cap before benefits start decreasing and just extend the full credit to 2023 for all manufacturers.

I don’t know how much influence they have, but of course I like the idea. Just think of how many more people would be able to afford a new roadster then. That just warms my heart!