evnow said:
hyperlexis said:
Honestly this only emphasizes the urgent need for EV tax credit reform. They really should be converted into true 'rebates' available immediately at the time of sale, not subsequent credits.
It may be "better" - but it would need to be authorized every year as part of the budget. Can you see it pass through this congress every year ?
Why would it have to be done that way, every year?
Also, I thought we didn't actually have a new fed budget yet in place, i.e. one that was proposed and passed. They just keep extending the prior ones?
Something must be done, regardless. I'm surprised more EV owners are not actually lobbying their congressmen for changes over this, frankly. Because right now, every single new qualifying EV immediately loses value upon sale for the full $7,500+, basically. -- Regardless of whether the first owner actually ever saw that full credit from the IRS, he will still get hit with the loss. It's factored in by the market. A used car buyer would expect the full discount be incuded in the price (and then some for mileage and normal wear and depreciation), because so many other available used EVs have had the credit applied after initial sale. This, therefore artificially, and unfairly pulls the depreciation of EVs down for every new buyer. If the Feds' goal is to increase use of EVs, forcing less wealthy buyers into the position that they will be losing the same, large amount of value on their new cars, just driving them off the dealers lots, as would wealthy buyers with higher tax liability, yet they won't even be able to claim the same full tax credit as did wealthier buyers, would be a significant deterrent to such people buying EVs. (Buy an EV, but because of your income you only qualify for $5,000 of the $7,500 in IRS rebate, plus, to boot, your car will still, inherently, depreciate for the full $7,500 immediately....) A real kick in the teeth, thank you.
The manufacturers and legislators have a serious pickle on their hands with this issue and something needs to be done to publicize and address the problem in a fair, equal manner.