[Roy EV Hunter]

I know that the past EV credit fell thru but there is still a possibility that a separate deal is in the works. On the old credit it capped at 80k Msrp for trucks. I am about to order a lariat but when adding max tow and delivery fee it’s slightly over 80k. Is the delivery fee considered to be part of the MSRP or is it looked at differently. Just want to be prepared in case something gets approved before the truck is delivered.

 

[Voltz]

On the old credit it capped at 80k Msrp for trucks.

This is incorrect for the federal tax credit in current law. The cap was in some drafts of the proposal that has gone nowhere.

 

[Leaf to Lightning : )]

the current law has nothing to do with MSRP or purchase price. If the 'new' idea of the BBB plan, or some form of it, eventually passes, you may then see a 'max price' that is imposed, but that, too, is subject to any negotiations before it is voted on, passes, and is signed into law. Chances are, it could be made retro-active, or it could be written to only apply to vehicles purchases AFTER a certain date in the future.
Also, the current credit is likely not going to effect anyone with a current order. Those with upcoming 2023 orders, if they fall well into deliveries during the next mid-year, might see some downfall of the current law and the limitations it entails. Some folks, though, don't realize that the current rules don't allow the current credit to suddenly disappear - it will continue well into TWO quarters AFTER a manufacturer has sold it's 200,000th EV. If that last vehicle is sold on the 1st day of a new quarter, then the credit continues thru that quarter, AND two more, which is almost up to 9 months past the time the 200,000th EV was sold - not BUILT, but SOLD.

 

[Leaf to Lightning : )]

the current law has nothing to do with MSRP or purchase price. If the 'new' idea of the BBB plan, or some form of it, eventually passes, you may then see a 'max price' that is imposed, but that, too, is subject to any negotiations before it is voted on, passes, and is signed into law. Chances are, it could be made retro-active, or it could be written to only apply to vehicles purchases AFTER a certain date in the future.
Also, the current credit is likely not going to effect anyone with a current order. Those with upcoming 2023 orders, if they fall well into deliveries during the next mid-year, might see some downfall of the current law and the limitations it entails. Some folks, though, don't realize that the current rules don't allow the current credit to suddenly disappear - it will continue well into TWO quarters AFTER a manufacturer has sold it's 200,000th EV. If that last vehicle is sold on the 1st day of a new quarter, then the credit continues thru that quarter, AND two more, which is almost up to 9 months past the time the 200,000th EV was sold - not BUILT, but SOLD.

also, the MSRP does not include destination price. If future bills are written with a 'price' maximum, which would either be the MSRP, with all MSRP additions and options, OR the sale price, whichever is greater, then it would not include shipping/delivery/destination fees or dealer fees or prep fees, etc. I didn't write the new bill, so whatever passes, if anything, is subject to a lot of speculation and conjecture at this point. I would suspect that any new bill 'should' allow for a purchase that exceeds the maximum value allowed, with a depreciation of the Credit, or Deduction, by a calculated or prorated amount. If a max is $80k for the $12,500 'credit', but the MSRP is $100k EV, then maybe they can decide to prorate that $12,500 down by a 25% value, which would be the $20k overage x 20% equalling $4,000, making a total 'credit' of $8,500 instead. Or something like that.

 

[Avalanche 3.0]

I would not count on future extensions of the tax credit, when there is such a high demand for electric vehicles. I would like to be totally wrong though...and for full disclosure, I have been wrong before, ....but that's my take. Carry on.

 

[jodgey]

yeah, senator manchin seems to be the lone holdout on this one and he is concerned about spending. But he was also very positive about the ev credit. So, you Don’t k ie how the wind blows on it. They are running out of time before the house and/or senate switches power and nothing substantive will get done at all.

 

[taxmanhog]

I see Congress doing NOTHING on any front the next five months [/stepping off soap box]

 

[ChasingCoral]

EV tax credit expansion: Automakers ask Congress to revive effort

CEOs of GM, Toyota, Ford, and Stellantis asked for tax credits to be extended to anyone buying a qualifying vehicle—until a sunset date.

www.greencarreports.com

EV tax credit expansion: Automakers ask Congress to revive effort

STEPHEN EDELSTEIN JUNE 14, 2022 4 COMMENTS
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Although an attempted expansion of the federal EV tax credit has failed—multiple times, in recent years—in a renewed effort, automakers are asking Congress to please try again.

In 2009, Congress set a 200,000-vehicle cap of qualifying vehicles—including plug-in hybrids—for each automaker, and the framework hasn't changed since then. General Motors and Tesla have already reached that limit, and Toyota is close to it. Once automakers hit that cap, their eligibility for the credit is gradually phased out.

In a letter to Senate and House of Representatives leadership Monday, the CEOs of GM, Toyota, Ford, and Stellantis asked for tax credits to be extended to anyone buying a qualifying vehicle—until a sunset date for all EV products regardless of the automaker.




2022 Ford F-150 Lightning

Automakers reportedly don't want the cap lifted until "the EV market is more mature," but didn't give a specific timeframe. The automakers summed that the credit has allowed companies to offer more affordable products in greater volume, spurring EV adoption. "However, recent economic pressures and supply chain constraints are increasing the cost of manufacturing electrified vehicles which, in turn, puts pressure on the price to consumers," they argued.

In its current form, the tax credit awards up to $7,500 depending on the size of a vehicle's battery pack. So in addition to all-electric vehicles, plug-in hybrids like the Toyota RAV4 Prime and Chrysler Pacifica Hybrid qualify.

But in the absence of a proposed revamped and renewed EV tax credit—offering up to $12,500 per vehicle—we're left with the existing tax credit and its 200,000-unit cap for the foreseeable future.

The second quarter after an automaker hits that cap, its tax credit is halved to $3,750, then drops to one-fourth of the full amount ($1,875) two quarters later. It remains at that level for two full calendar quarters after that before disappearing.


2023 Toyota bZ4X Limited AWD

A previous extension of the EV tax credit had bipartisan support but was reportedly cut out of spending bill as part of "extreme resistance" from then-President Trump.

Since then, the EV tax credit expansion has become more politically charged. A version proposed as part of last year's infrastructure bill was pushed to a reconciliation spending bill that never happened—because of widespread resistance from Republicans and at least one Democratic Senator—West Virginia's Joe Manchin.

Part of the pushback to that version—which also included a used EV tax credit—was a requirement that EVs be union-made to get the top credit amount. This was opposed by Tesla, Toyota, and Volkswagen, which build (or plan to build) EVs in non-union factories.

This is noteworthy as it represents an allied front that spans those companies that primarily use a unionized American workforce, including GM and Ford, with Toyota, which primarily uses a non-unionized domestic workforce. Will these bridges build an expanded credit? We'll soon see.