Top four on the list below, likely being the most important, IMO.
I do not have any particular expertise in the field, so please correct any mistakes I may make.
Top 10 tax changes for business owners
On Dec. 22, the Tax Cuts and Jobs Act (TCJA) was signed into law. This column briefly summarizes the most important of the many changes in the TCJA that will affect small and medium-size businesses and their owners. Here goes.
1. New flat 21% tax rate for corporations...
Profitable BEV manufactures (all but TSLA...no profits, no income tax) can either cut BEV prices or retain this windfall.
2. No more corporate alternative minimum tax...
See comment above...
3. New deduction for “pass-through” business income
...The deduction generally equals 20% of QBI, subject to restrictions that can apply at higher income levels. The QBI deduction is not allowed in calculating the noncorporate owner’s adjusted gross income (AGI), but it reduces taxable income. In effect, it is treated the same as an allowable itemized deduction...
It is widely believed that millions of employees will shift their status to contractors to walk through this massive loophole.
This in turn should open up a number of other company car benefits in the tax code.
4. Liberalized asset expensing and depreciation provisions
...More Generous Depreciation Deductions for Passenger Vehicles Used for Business: For new or used passenger vehicles that are placed in service after Dec. 31, 2017 and used over 50% for business, the maximum annual depreciation deductions allowed under the TCJA are as follows:
* $10,000 for Year 1.
* $16,000 for Year 2.
* $9,600 for Year 3.
* $5,760 for Year 4 and thereafter until the vehicle is fully depreciated.
Key point: For 2017, the old-law limits for passenger cars are $11,160 for Year 1 for a new car or $3,160 for a used car, $5,100 for Year 2, $3,050 for Year 3, and $1,875 for Year 4 and thereafter. Slightly higher limits apply to light trucks and light vans. So the new rules are much more beneficial...
I would think this should benefit BEVS over ICEVs, as generally higher initial costs could be written off so much faster, while the higher fuel and maintenance costs of ICEVs will be still be incurred on the same schedule.
Expensive BEVs (other than Tesla X, and any other future heavyweight BEV which will also benefit from the Hummer loophole, excepted) should get the more significant sales boost.
Overall, it looks to me like an intentional effect effect of the tax bill was to favor the auto industry in general, and unintentionally (?) may favor BEV sales in particular.
https://www.marketwatch.com/story/top-1 ... 2017-12-29