Not going to post links to stories because they involve mostly politics so let's keep this only about the money itself. Think this is a good idea? Amounts to a forced tax? If this passes there will a $10,000-$12,500 credit on every electric and fuel cell vehicle sold which is priced $80,000 or less. The details are not final but the credit will not be limited to any auto maker if they've sold a certain amount of cars so for example Tesla and GM would again qualify. This will cost a projected $32 billion dollars if it runs into planned 2031. In the grand scheme of spending that's not a lot.

Other things of note, any auto maker that is unionized gets $12,500 per vehicle otherwise $10,000. From what I've read only cars made in the United States quality so that leaves the Mach E out, unless that is changed or exceptions are put in place.

So, yay or nay? Let the market decide? I'm conflicted on this, I am for small government but feel auto makers and consumers need a nudge.

 

Bad idea. Just handing out more taxpayers money. Using those less affluent in money and redistributing it to those with more to encourage the purchase of an expensive EV. Something is wrong with capitalist America if this goes through.

 

Obviously, the politicians, with their votes, will decide, but, as I see it, there is going to be a lot of financial-pressure to come up with ways to counteract the serious drain on gas-tax revenue we are seeing, both from less fuel used because of the pandemic, and many vehicles simply getting better fuel-mileage. The question is how to replace that lost revenue, and an EV tax credit is probably not going to help that problem any. Just where and how that lost revenue is going to be re-generated is one of the things we elect people to decide.....but my guess is that at least some of it is going to have to come from EV vehicles and/or their electrical-use, not more tax-credits not them. You can't fill a water-jug, for example, by pouring out some of the water.

 

I don't like the idea that the people getting the full tax credit are making 6 digit salaries. I think it should have targeted lower income individuals.

 

100% agree on that. Why not make it part of your tax return.

 

I agree. No need for someone making a lot of money to get more tax breaks.

 

Lower income people are not in the market for a new car. And most live in apartment charging infrastructure is non existence.

 

Terrible idea. And $32Bn not a lot of money? Sure compared to proposed $6T budget, but 32B is still a staggering amount of money, stolen from taxpayers to allow wealthier people to virtue-signal about driving an EV.

and if it's u.s. built EVs only, who does it apply to? Tesla sure, but what else?

And people get a bigger credit if the car was built by a unionized auto maker? Talk about "pay off" Please.

 

I disagree. An EV for 38k with a 12k tax credit, that's 26k. If lower income people making 40-75k could get that full 12k tax credit it becomes really attractive for them to purchase an EV. The fuel savings will offset the additional cost per month for a 26k car vs a 18k car if you drive 10-12k miles per year.

I did the calculation myself, if I got that full credit on the ioniq 5 (assuming it's 40k msrp) and hyundai is including free electrify America charging for 2 years, after 5 years I would actually be saving a few thousand vs driving my current car.

 

I don't even care if higher income individuals get the 12k off, but lower income should atleast get the same benefits l if not more.

 

There should be zero tax credits on EVs. The government should not subsidize any auto manufacturer. Manufacturer rebates will be replaced with tax credits.

The government should stay out of private industry all together. Let them sink or swim. GM should have failed long ago........

 

This will work out as good as Medicare and Social Security or any other government initiatives.

Why the government needs to get involved in car sales is beyond me.
Pure market manipulation.

 

Because people in power come up with all kinds of programs under phony premises, most of this money will go towards bribes and high salaries to the directors in charge of such programs who happen to be related to the politicians.

 

How many lower income can take advantage of a 12k tax credit? Certainly not someone making $40k. Ironically the full $12k may only benefit the people making 6 figures.

 

It's already started in Ohio with a $100 annual surcharge on plate fees for hybrid vehicles and $200 for electric (whether a PHEV or full EV).