Nissan Leaf at about $25K--washpost.com

actually release date is December

 

Think about this about AMT...
Yes, you may not have been hit by AMT. With $7500 deduction from your tax, the AMT will show up on top. That is what you will pay.
I don't know about porating this specific tax credit. You need to consult your account for that.

6-figure income? You are kidding, right? That is almost 50% of engineers in silicon valley!!!
Engineers with a few years of experiences make $100K here. True, housing is expensive here, but the AMT does not care about that.

AMT was designed to block rich people from tax evasion. However, over the years, more and more mid-class families are being hit with it. The Fed know it, but they don't want to change the law to cut its own revenue. AMT is here to stay for now.

I am just giving you a heads-up. Don't buy it and then find out that you don't qualify for the tax credit. That is all.

 

Good point!

Anyone have pointers to exactly what the tax credits qualifications are - both Federal and California?

If this car actually makes in out in December - I guess it would be a little easier to figure out how much of the tax credits you will be able to get. If the release gets delayed until January or February - it might be a whole lot tougher to figure if your compensation includes 1099 and/or commission type income.

 

Since I probably won't be in the market for 5 or 6 years at least, I wonder where the pricing will be for the second or third gen versions of the Leaf, Volt? and other comers. I imagine credits will be a distant memory by then! Of course, Prius plug-in conversions will also be cheaper and better by then...

 

The EV tax credit is a CREDIT, not a deduction - so it won't push you into AMT territory unless you're already there. And even then, I think this credit may have been specifically exempted and would be applied after AMT (reducing your tax owed, rather than being deducted from the amount of income you owe taxes on).

True, AMT is hitting a wider target now than originally - and you've probably hit the nail on the head that it is upper middle-class families in high cost-of-living areas that are getting hit more now, because their mortgage interest is a very big deduction. But saying you should pay less taxes because it costs you more to live in a nicer neighborhood isn't sound calculus, if you ask me.

Maybe they could afford to close the so-called AMT "bubble" by putting a phase-out on these credits for the highest earners, but apparently they chose not to do so. (probably how they were able to get Republicans on board - cutting taxes without paying for it elsewhere)

 

If they ever sell it in EU, it will *very* likely be 32,000€ - you do the math...

 

Just checked the IRS web site. If you purchase an EV or EREV in 2010, the tax credit can also be applie to AMT, unlike the older version of 2009 tax credit.
Just FYI, though you may not care about it like I do.