Consumer reports has an in-depth article explaining the new proposed regulations.

"Which EVs Will Qualify for the New Electric Vehicle Tax Credit? It’s Complicated."

https://www.consumerreports.org/cars...t-a9310530660/

Doesn't look good for the environment nor those of us looking to buy an EV next year.

 

$85 million out of $430 billion

 

Its just a gift to automakers as they basically will increase their price by the amount of the EV credit like Ford did with the Lighting. It makes no sense to waste taxpayer $$$ when there is substantial demand for EVs currently that exceeds supply therefore this will only spur more inflation…..

 

I could reply but then I'd receive a warning no political comments allowed🙃

 

The only ones that qualify are ones that I would never buy. So If i am not going to get a tax credit will not buy an electric car. Smart move by Washington politicians.

 

Automotive expert Scotty Kilmer weighs in. A whole lot of arm waving so you know he's on point.

 

I read the lengthy article. The proposed regulations is trying to incentivize U.S manufacturing. Right now most of the assembly points and materials in those EV batteries are sourced from foreign countries. Many companies saw this coming and don't want to be caught like a deer in a headlight so they have begun investing in battery manufacturing plants on U.S oil. I would think most people support bring back manufacturing back to U.S. For the near term there would some pains but then again most Americans seem to all about the short terms.

 

I'm not sure if I understand it right. What about the current Federal Tax Credits? Will this new tax credit replace the current Federal Tax Credits??

https://www.fueleconomy.gov/feg/taxevb.shtml

 

That's just estimated cost to taxpayers for 2023.

 

Going to be interesting to see how some cars like the Model Y are classified. $80k limit for trucks/suvs vs $55 limit for passenger cars will likely create a push for more EV trucks/suvs. Horribly designed bill.

 

yes, broadly from January 2023, but with some key differences:

- Credit at the point of sale (the tax credit is essentially transferred to the dealer)
- MSRP caps
- US sourcing requirements
​​​​​​- used cars also qualify, but the credit is reduced.

 

I think the biggest barrier for the long term issue will be sourcing the minerals for the batteries in North America.

They just don't exist here, in sufficient quantities, and then of course you've got one political party who never met a mine they like, and the other who never met a mine they didn't like, so there's that.

Anyone can build or convert an assembly plant to build EV's. It just takes time.

 

LOL. He can be entertaining at times to watch but at end of the day the he loves to complain about a lot of things just for the sake of it. I guess it is a by product of old age.

 

Once Biden signs 7500 rule is not retroactive it will expire the moment he signs. I’ve been following closely since I have i4 M50 on order and I will not be able to claim tax credit for sure.

 

have you looked into the transition rule and whether your order can be updated to qualify? Lucid and others are updating orders to make the reservation fee non-refundable to help ensure the order falls within the transition rule.