End of EV Tax Credits coming?

Hey we've got to protect the booming coal industry and the struggling oil industry. How selfish of us to want subsidies for clean-running electrified vehicles!!

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But check your tax situation first. Some of us are not in position to benefit from it. This is a non-refundable credit, meaning that you can't get any more tax credit than your actual tax bill. If your tax liability (somewhere in the range lines 47-63 on last year's IRS Form 1040, not the Line 76 "Refund" that many folks look forward to in their mailbox for spending cash) is less than the credit, then the extra just disappears, not sent back to you as a refund.

For illustration, my financial situation is 'early retiree without medical benefits' -- no salary anymore, no pension yet, paying full freight (before Obamacare) for medical insurance on the individual market. Obamacare's "10 essentials" coverage mandate sharply increased our insurance cost, but for us (not everyone), that is offset by the ACA tax subsidy. That subsidy is tied to household taxable income, which I can adjust almost at will with Roth conversions of retirement accounts.

Right now, trading in my 2012 for a Prime doesn't financially pencil out without a nearly full EV tax credit, but my expected 2017 tax liability is much smaller than that. I can easily increase my tax with a Roth conversion, but that shrinks the ACA credit. Not exactly dollar-for-dollar, but fairly close. The result is essentially no gain. Tax credit is shifted from one bucket to another, but the total amount of credit in the pair of buckets doesn't change much. It might even shrink a bit.

In simpler words, I am already single-dipping on tax credits with Obamacare. I don't get more by double-dipping into the EV credit.

This is specific to my tax situation, which doesn't apply to most folks. But I suspect there are plenty of other early retirees here with a similar situation.

With the current tax overhaul fights, Kill Obamacare efforts, and spouse transitioning to Medicare, everything will be different next year. I'll just cross my fingers that reduced EV demand will lead to greater discounting.

 

Did Toyota get rid of the $3250 incentive early? It seems to have disappeared from TrueCar.

Edit: After a second look, I found it on Toyota's website. Not sure why it didn't show up before.

 

Here is the update from your link:
Update: we are receiving other reports suggesting the EV tax credit wasn’t removed from the approved bill with Senator Flake’s amendment, but it is still unclear. We actually don’t know exactly what they passed and most senators probably don’t either if we are being honest.

 

It has never appeared in my region. Ours is stuck at $1000.

 

How? We do our taxes in January.

 

The purchase must take place before January 1st to be eligible for claiming the credit for 2017 taxes.

 

It will be interesting to see how this affects sales and pricing, this year and next. Actually, this month and next.

 

agreed, it's a uge factor.

 

You have to pass it to know what's in it.....

 

Perhaps there will be a lot more visits to Joisey this month if it passes.

While you enjoy your stay in NJ for your Prime vacation, may I recommend checking out some of the local attractions:

• The congestion along 17 (we all know it's "Route 17," don't bother clarifying)
• The acoustics surrounding Newark Liberty International Airport and the 5-lane-wide highways
• The Ferrari and Tesla dealerships
• The home of the Bada-Bing (admit it, you've seen it)
• Real bagels

 

Sounds like an Oscar Meyer Wiener to me!! I must be there; I must go!!

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Looks like the EV credits will survive after all!

Electric Vehicle Tax Credit Is Safe In Republican Tax Bill | Fortune

 

Glad I was wrong then... I'll attribute my "bad feeling" to the net neutrality turnout.

 

That makes me happy, I will have more time to save for larger downpayment.

 

Oh my gosh, how could I forget to bring out my dancing owls!

 

This thing needs an LOL button.

 

I think the few dealers that have them are taking advantage of the situation. Dealer down the street has 2 Primes in their rental fleet. I'll stop by today and have a look. Considering my tax bill last year, it would be nice to get the credit by end of year.