Republican tax proposal will terminate $7,500 EV tax credit

My Nissan Leaf Forum

Help Support My Nissan Leaf Forum:

This site may earn a commission from merchant affiliate links, including eBay, Amazon, and others.

edatoakrun

Well-known member
Joined
Nov 11, 2010
Messages
5,222
Location
Shasta County, North California
Republiscum tax reform.

Screw EVs, increase subsidies for nukes.
GOP tax bill ends electric vehicle tax credit, overhauls other energy taxes

A massive GOP tax-reform bill would end a $7,500 credit for the purchase of electric vehicles and overhaul other energy-related provisions within the tax code.

The 429-page bill would repeal the electric vehicle tax credit, which supporters have credited with reducing the price of emission-free cars for consumers and helping the burgeoning American electric vehicle industry grow.

Advocates have ramped up lobbying efforts to save the credit, which has benefited electric vehicle manufactures like Tesla. The credit is limited at the first 200,000 electric vehicles sold by each manufacturer, but no one has yet hit that cap...

The legislation also reforms several energy-related tax credits.

It would repeal an inflation increase for renewable energy production tax credits, a move that would increase taxes for power sources like wind, solar, biomass, geothermal, hydropower and others. That provision would raise $12.3 billion in new revenue over ten years.

The bill also aligns the expiration date for investment tax credits affecting the renewables industry and extends a tax credit for residential energy efficiency programs. The two proposals would cost the government a combined $2.3 billion over a decade.

Republicans also seek to end two small tax credits for the oil industry, reducing government revenue slightly, and extend a nuclear industry production tax credit to newly built power plants beginning in 2021.
http://thehill.com/policy/energy-environment/358446-gop-tax-bill-ends-electric-vehicle-tax-credit-overhauls-other
 
LeftieBiker said:
I'll be pretty ticked off if I have to lease a Bolt for this reason...
Since New York has required quotas for EV sales, it shouldn't raise prices for EV's in New York, unless you were planning on buying a Tesla.
 
Sad to see the $7,500 EV tax credit will likely go away. Surprised they are also taking some credits from oil. Really torqued they are encouraging new nuclear plants.

We all knew the federal EV tax credit would end at some point. So I'm not too upset about it. I'm just disappointed Nissan didn't deliver the Leaf 2 in time for me to get another tax credit before they took it away. Guess the net price of the 2018 will be $7,500 higher than I was planning on. Grumble.
 
My main concern about nuclear power is the high costs. However, I’d much rather see more nuclear plants get built than coal or natural gas plants.

The best source of “nuclear power” is the giant fusion reactor in the sky, called the Sun. Heavy penetration of solar power, however, most likely depends on widespread deployment of energy storage.

Ending the $7500 EV tax credit without simultaneously considering a carbon tax is of course absurd.
 
Please sign: https://org.salsalabs.com/o/2711/p/dia/action4/common/public/?action_KEY=22515
Help stop Congress from trying to kill the electric car! Just this morning, Chairman Brady of the House Ways and Means Committee introduced the Tax Cuts and Jobs Act, H.R.1. The bill calls for the repeal of the $7,500 federal electric vehicle (EV) tax credit
 
IMHO BEV sales will tank - effectively all BEVs will suffer a $7,500 price increase. I assume it will be effective as of NOV 2?

Wonder if used BEVs will increase in price?
 
An attempt to do this was certainly expected. Hasn't happened yet, of course, but if it does we'll see just how limited the real market is for PEVs, absent mandates. As IEVS points out this can help Tesla, by making their EV credits worth a hell of a lot more (to other manufacturers) in states like California which have ZEV quotas.
 
My understanding it would go in to effect as of Jan 1 2018 if it passes. So I bet the deals on EV's will dry up as everyone tries to purchase before the credit ends.
 
joeriv said:
IMHO BEV sales will tank - effectively all BEVs will suffer a $7,500 price increase. I assume it will be effective as of NOV 2?

Wonder if used BEVs will increase in price?
ZEV states such as California require certain amount of EVs to be sold. What this will cause is that gas car will have a hidden tax to pay for the BEVs in ZEV states. California sells half the EVs sold in America, so doubt sales will tank too much. This might make other states join the EV mandate if people really want clean air.
 
Hi, Im hoping someone can can answer this. I bought a new leaf in August of 2017 .( I love my car) Since I pay a sufficient amount of taxes I was supposed to get the $7500 tax credit. Here is my questions. When I file in 2/2018 will I still be able to get this credit now that they are ending the program?

Thankyou,
CS
 
CS, it's not a done deal....There's a bit of water to go under the bridge before the tax credit is taken away or changed.

What I'm hearing is that the tax credit for 2017 would be okay, and the first year that could be changed is 2018. They can't just pull the rug out from under all the buyers for cars they bought this year...
 
DanCar said:
LeftieBiker said:
I'll be pretty ticked off if I have to lease a Bolt for this reason...
Since New York has required quotas for EV sales, it shouldn't raise prices for EV's in New York, unless you were planning on buying a Tesla.

What you wrote makes no sense. Nissan applies the $7500 to the lease as an additional down payment. No $7500 credit, no affordable 2018 Leaf lease. I might as well be trying to get a Tesla. And I'm not sure that you understand what "required quotas" means in this case, either.
 
LeftieBiker said:
DanCar said:
LeftieBiker said:
I'll be pretty ticked off if I have to lease a Bolt for this reason...
Since New York has required quotas for EV sales, it shouldn't raise prices for EV's in New York, unless you were planning on buying a Tesla.
What you wrote makes no sense. Nissan applies the $7500 to the lease as an additional down payment. No $7500 credit, no affordable 2018 Leaf lease. I might as well be trying to get a Tesla. And I'm not sure that you understand what "required quotas" means in this case, either.
The numbers are just invented: Let's say Nissan is required to sell 2,000 BEVs per month. They barely make their quota. All of a sudden a tax credit of $7,500 disappears. They are still required to make their quota, so they will eat the loss, continue the same lease price to continue selling EVs, which is required to continue selling pollution cars.
 
The numbers are just invented: Let's say Nissan is required to sell 2,000 BEVs per month. They barely make their quota. All of a sudden a tax credit of $7,500 disappears. They are still required to make their quota, so they will eat the loss, continue the same lease price to continue selling EVs, which is required to continue selling pollution cars.

That math is way too simple, and it doesn't factor in the Leaf being a car sold worldwide, not just in the US. Nissan won't eat $7500 on each 2018 Leaf. They can get ZEV credits from PHEVs as well. If the Federal credit gets killed, there will be a long period of stagnation in the EV market, as only the more affluent buy new EVs, and people of more modest means buy cars like the Prime, with the help of more modest state credits and rebates. Used EV prices will skyrocket. By the end of the year there will be serious discounting, but that's far too late for most people like me.
 
Randy said:
CS, it's not a done deal....There's a bit of water to go under the bridge before the tax credit is taken away or changed....

Yeah I'd be surprised if there is not a TON of negotiations before any major tax reform is enacted. That being said, it's amazing to see the GOP coming out against tax cuts, and FOR double-taxation. They want me to pay Fed tax on money my state has ALREADY taken. Wow. Times change.
 
Yeah I'd be surprised if there is not a TON of negotiations before any major tax reform is enacted.

I'm sure that there will. Now, does anyone really believe that those negotiations will involve a real fight to save the EV credit? If anything it will become a sop to Republicans to let it die, in return for something like a slightly higher cutoff for mortgage deductions.
 
Back
Top