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Will Tesla "Hack" the Tax Code?

Discussion in 'Tesla' started by ggood, Apr 5, 2016.

  1. ggood

    ggood Senior Member

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    Tesla Can Hack The Tax Code To Max Out The Number Of People Who Get $7,500 Back, Here's How

    "As Elon Musk’s Twitter feed made clear, the Model 3 is a work in progress and delivering it on time in “late 2017″ as he has repeatedly said is the goal won’t be easy. The second “clock” is Tesla’s countdown to 200,000 U.S. vehicle deliveries, after which the $7,500 federal tax credit begins phasing out and ultimately goes to zero over a span that is not longer than 18 months. Over that period, the credit passes through three phases where (1) it is fully available (2) shrinks in half to $3,750, then (3) finally goes to $1,875 before disappearing forever. Tesla is acutely aware of this. And Musk even went so far as to suggest the company might cleverly manipulate its deliveries to allow the largest possible number of Model 3 owners to get the benefit of it."

    Essentially, it boils down to manipulating the timing of deliveries, so as to maximize the length of the credit period, while not pissing people off with even more delays.
     
    #1 ggood, Apr 5, 2016
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  2. I'mJp

    I'mJp Senior Member

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    Then there's the other tax that the states will figure out with all these new cars. That's the gas tax. When states start to figure out how many vehicles are out there paying zero, very stupid things will be legislated...
     
    #2 I'mJp, Apr 5, 2016
  3. wjtracy

    wjtracy Senior Member

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    Tesla won't have to hack the tax code. Congress will simply extend the benefit. Have you seen how many times California has extended green HOV stickers for PHEV? Incentives is the key right now.

    EDIT- Sounds like CA is working yet another extension of green HOV stickers as we speak. I've grown tired of predicting downward Plug_in sales due to expiring incentives, because the incentives keep being extended.
     
    #3 wjtracy, Apr 5, 2016
    Last edited: Apr 12, 2016
  4. ggood

    ggood Senior Member

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    You have the Kochs (due to their personal interests in fossil fuels) and the tea party activists (for no apparent reason) very hostile to electric cars and personal tax breaks (corporate welfare tax breaks are OK for some reason, except for the true idealogues). I doubt we will see any extension or expansion of the tax credit. If the rationale is to promote initial growth of the EV industry, then the massive Tesla reservations arguably show such incentives are no longer needed. Of course, it helps that Tesla is producing cars people actually want.
     
    #4 ggood, Apr 5, 2016
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  5. iplug

    iplug Senior Member

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    Would be great for the PHEV/BEV industry. But the political makeup of the California and national legislature's are on opposite ends of the political spectrum, probably more so now than they were when these credits first rolled out.
     
    #5 iplug, Apr 5, 2016
  6. wjtracy

    wjtracy Senior Member

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    Yeah but you see the bills coming out of Congress are a little mix of something for both sides. It would make sense if Congress added some income restrictions, like when we bought hybrids with tax credits in 2006 (supposedly $3150 off on a Prius), even middle class Prius owners could not get the full credit.
     
    #6 wjtracy, Apr 5, 2016
    Last edited: Apr 5, 2016
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  7. el Crucero

    el Crucero Senior Member

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    It depends on who you vote for in 2016. Vote wisely!

    Yes, the ICE drivers are hopping mad that BEV drivers get off scott free on gasoline tax to pay for road repair. Even though California legislature is environmentally friendly right now, I expect that some sort of annual tax will be added to BEVs and PHEVs to pay for their share of road repair. I don't have a problem with this as long as it is done on an equitable basis. I think the tax has to be done on total number of miles driven per year within California.
     
    #7 el Crucero, Apr 5, 2016
  8. bisco

    bisco cookie crumbler

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    i wouldn't have a problem either, if they dedicated the money to road repair.
     
    #8 bisco, Apr 5, 2016
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  9. el Crucero

    el Crucero Senior Member

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    Finally, we agree on something! (y) Enjoy your snow!
     
    #9 el Crucero, Apr 5, 2016
  10. bisco

    bisco cookie crumbler

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    thanks.:(
     
    #10 bisco, Apr 5, 2016
  11. hill

    hill High Fiber Member

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    that's a lofty concept .... equity in taxation ... considering 18wheelers can weigh 80,000Lbs compared to your 5KLb car ...and they may drive 10x more per year than your car ... on a taxation cost per mile/weight, times the # of trucks. Yet it's all that weight & miles that really tear up the roads. No - you'll be waiting a long time to see equity in road taxation. That's pretty much the case with other taxes & incentives.
    .
     
    #11 hill, Apr 5, 2016
  12. I'mJp

    I'mJp Senior Member

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    #12 I'mJp, Apr 5, 2016
  13. bisco

    bisco cookie crumbler

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    hybrid fees too, in some states.
     
    #13 bisco, Apr 5, 2016
  14. el Crucero

    el Crucero Senior Member

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    Not necessarily, choose carefully when you vote!
     
    #14 el Crucero, Apr 5, 2016
  15. Corwyn

    Corwyn Energy Curmudgeon

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    Can I be hopping mad the ICE drivers are polluting the air and causing huge expenses without paying a tax for it? Can I be hopping mad that ICE drivers are depleting a limited resource and getting paid tax money to do it? Can I be hopping mad that ICE drivers are ruining the climate which will cost untold amounts to mitigate or even survive? Equitable basis.

    Thank you kindly.
     
    #15 Corwyn, Apr 11, 2016
  16. bisco

    bisco cookie crumbler

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    you can be as hopping mad as you please, it's legal.:)
     
    #16 bisco, Apr 11, 2016
  17. Ursamajor

    Ursamajor Member

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    Don't make too many assumptions. The Republican Congress (both houses) extended solar tax credits for several years in the omnibus budget bill last fall, and wind tax credits are typically extended with minimal opposition, in spite of Koch brothers/ALEC opposition in both cases.
     
    #17 Ursamajor, Apr 12, 2016
  18. bisco

    bisco cookie crumbler

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    you scratch my back, i'll scratch yours.
     
    #18 bisco, Apr 12, 2016
  19. ggood

    ggood Senior Member

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    Senate Dems Blame Koch Brothers For Killing Clean Energy Tax Credits
    Told ya so...:eek:
    "Tax credits for clean energy sources won’t hitch a ride on legislation reauthorizing the Federal Aviation Administration in the Senate, and Democrats say conservative mega-donors Charles and David Koch are to blame."
     
    #19 ggood, Apr 12, 2016
  20. Ursamajor

    Ursamajor Member

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    That sucks. At least the solar extension through 2021 is safely baked into law.
     
    #20 Ursamajor, Apr 12, 2016
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