Once upon a time, you could get a $ 7,500 federal tax credit on Tesla and General Motors electric cars. But since both carmakers exceeded 200,000 electric vehicle sales in 2019 and 2020, respectively, that credit has disappeared. He could return, however, thanks to a new bill.
Democratic leaders of the US subcommittee supported ways and means Law on Increasing Renewable Energy and Efficiency Now (GREEN), introduced by Representative Mike Thompson (D-California), which would make Tesla and GM vehicles eligible for IRS tax credits again for the next few years.
In essence, the bill would allow customers to apply for up to $ 7,000 in credit with the purchase of a new electric car – a $ 500 discount from the previous loan. This would last until the carmaker in question exceeded 600,000 electric vehicles sold. More critical of Tesla and GM, the law would also reduce accounts to 200,000, meaning that any car sold by both companies after the first 200,000 would not be considered for their 600,000 total cars.
As in the case of the Clean Energy and Security Act (ACES), the credits would be awarded on a technology-based sliding scale – all-electric vehicles would receive more than connected hybrids, for example. In addition, once a manufacturer sells 600,000 qualified cars, its future customers will be able to apply for up to $ 3,500 in credit for the next quarter. After that, the savings will be completely eliminated.
The proposal also provides for sales of used electric vehicles. Buyers could save up to $ 2,500 as long as the car in question is two or more years old and the sale price is below $ 25,000. However, eligibility to buy second-hand products is linked to income and the limit is very low, as is Title IV of invoice states (bold):
The amount that … would be allowed as a credit under subsection (a) will be reduced (but not below zero) by $ 250 for every $ 1,000 (or fraction thereof) by which taxpayer’s adjusted gross income exceeds $ 30,000 (double this amount in the case of a joint return).
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Of course, I heard about The Biden administration’s desire to push electric vehicles from the election and the reinstatement of loans can help several of these cars to enter the street. Or not, given that there is evidence to suggest that most people who buy electric vehicles are wealthy enough to do so, regardless of the eligibility for the tax subsidy.
A cash the EV credit used, on the other hand, would offer the two-way advantage of encouraging those existing cars stay on the road, while reducing prices for those who can’t afford new electric vehicles – the people who could use the subsidies the most. However, these income requirements could really use another aspect. I would be curious to know how many people earn less than $ 30,000 a year adjustments, have ever even considered used electric vehicles.
Worth noting that a previous iteration of the GREEN Law failed to get through the summer, although, with a weak democratic majority now, there is a greater chance that this date will be achieved.