Obama for changing the $7,500 tax credit to a tax rebate ?

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evnow

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As covered in another thread by AndyH, Obama asked that we stop subsidizing yesterday's energy (oil) and fund tomorrows.

http://green.autoblog.com/2011/01/26/obama-u-s-can-reach-1-million-plug-ins-by-2015-stop-subsidizi/

At the California Institute of Technology, they're developing a way to turn sunlight and water into fuel for our cars. At Oak Ridge National Laboratory, they're using supercomputers to get a lot more power out of our nuclear facilities. With more research and incentives, we can break our dependence on oil with biofuels, and become the first country to have 1 million electric vehicles on the road by 2015.

He might ask that the $7.5K be made a point of sale rebate. That means
- no waiting, we get the rebate when we buy the car
- people without 7.5K in tax liability can still get the rebate
- people who have to pay AMT will still get the 7.5K rebate (update - AMT doesn't apply to tax credits even now)

The details of the administration's plan will become more clear in the next few weeks when the budget proposal is released. Besides investments in R&D, they'd like to change the $7,500 plug-in vehicle tax rebate into a point of purchase rebate, meaning everyone would be elegible for the full amount with no waiting. Charging infrastructure development is also high on the wish list.

This was one of the points in the EV bill that passed the senate comittee but didn't get to floor of the last congress.

This is from the mail that came from his office.

This vision for the future starts with innovation, tapping into the creativity and imagination of our people to create the jobs and industries of the future. Instead of subsidizing yesterday's energy, let's invest in tomorrow's. It's why I challenged Congress to join me in setting a new goal: By 2035, 80 percent of America's electricity will come from clean energy sources.
 
I'm all for incentives to EVs but if you don't owe the tax I don't think you should get the rebate, this should be a funded rebate. If we are going to give the oil companies money they we should just give out free EVs, because those subsidies are even more insane.
 
At the very least the tax credit of $7500 should have a carry over provision. Presently the credit, as structured, is more advantageous to the wealthy.
 
ENIAC said:
At the very least the tax credit of $7500 should have a carry over provision. Presently the credit, as structured, is more advantageous to the wealthy.
Right.

I'd argue that even the carry over is advantageous to the wealthy i.e. they can afford to spend now and get it back in 2 years.

I think democratization requires point of sale rebates.
 
It's all a matter of how many EV's the Federal Government really wants on the road. After the early adopters and complete nut-cases such as myself get their Leafs, the instand point of sale rebate will clearly be more attractive to the next layer of interested buyers. If they want a million EV's on the road than the rebate is a good idea, as would be the removal of the unit number limitations now in place.
 
ENIAC said:
At the very least the tax credit of $7500 should have a carry over provision. Presently the credit, as structured, is more advantageous to the wealthy.
This is where I stand as well. Let roll it forward up to 5 years or something that would put in in every's reach.
 
Can someone please clarify, my understanding that the $7,500 Fed credit was not affected by AMT. I'm probably not going to have an issue with AMT in 2011, but just wanted to be sure incase I have an opportunity to make some additional deductions during the year.

Thanks....

evnow said:
As covered in another thread by AndyH, Obama asked that we stop subsidizing yesterday's energy (oil) and fund tomorrows.

http://green.autoblog.com/2011/01/26/obama-u-s-can-reach-1-million-plug-ins-by-2015-stop-subsidizi/

At the California Institute of Technology, they're developing a way to turn sunlight and water into fuel for our cars. At Oak Ridge National Laboratory, they're using supercomputers to get a lot more power out of our nuclear facilities. With more research and incentives, we can break our dependence on oil with biofuels, and become the first country to have 1 million electric vehicles on the road by 2015.

He might ask that the $7.5K be made a point of sale rebate. That means
- no waiting, we get the rebate when we buy the car
- people without 7.5K in tax liability can still get the rebate
- people who have to pay AMT will still get the 7.5K rebate

The details of the administration's plan will become more clear in the next few weeks when the budget proposal is released. Besides investments in R&D, they'd like to change the $7,500 plug-in vehicle tax rebate into a point of purchase rebate, meaning everyone would be elegible for the full amount with no waiting. Charging infrastructure development is also high on the wish list.

This was one of the points in the EV bill that passed the senate comittee but didn't get to floor of the last congress.

This is from the mail that came from his office.

This vision for the future starts with innovation, tapping into the creativity and imagination of our people to create the jobs and industries of the future. Instead of subsidizing yesterday's energy, let's invest in tomorrow's. It's why I challenged Congress to join me in setting a new goal: By 2035, 80 percent of America's electricity will come from clean energy sources.
 
I for one hope Obama and congress gets the passed. I also hope the point of sale rebate turns in to a full tax credit for those who have bought one this year to claim on there 2011 taxes.
 
ENIAC said:
At the very least the tax credit of $7500 should have a carry over provision. Presently the credit, as structured, is more advantageous to the wealthy.


I like the idea of carry over.
 
Gonewild said:
This is where I stand as well. Let roll it forward up to 5 years or something that would put in in every's reach.

I have never owed the Feds anything extra on tax day. In fact I typically get ~$1,000 back. The most I ever owed was about $80 to the state. You could roll it over for infinity and I'd never see it unless something fairly major changes.

Rebate is better for me!
=Smidge=
 
Maybe we are going the wrong way with the money.

Instead of an EV rebate, ICE vehicles could pay an additional tax. More than four cylinders pays $1500 per cylinder. Then add 10 cents to the gasoline tax per year over the next 20 years. Then the EV rebate could be reduced or at least it would be fully funded.

Yes and all special tax considerations for business could be phased out over 10 years. Net income would be taxable income.
It would bother me a lot less hearing about the big oil profits if I knew 30% of the reported number was given as taxes.
 
Politically this is going no where, too many members of congress are in big oil's pocket, and the GOP won't stand for any tax breaks that apply to people who earn less that $57,000 a year.

From a policy standpoint, I agree that oil companies have no need to be subsidized by the tax payer, they are and will be making money hand-over-fist as the price of gas rises. However I also agree that most tax credits and deductions should be eliminated - Fully funded tax rebates are OK, meaning the money for the rebate needs to be justified and appropriated each year by congress. Our tax laws are way too complicated and full of tax breaks (like oil) that have long outlived their purpose.
 
They are looking to extend this credit to 500,000 cars in the future, this was posted on ABG today. And, no we do not need an entire thread on that either:)
 
I made my plan to take the car this year I told my dealer if it came in Dec to hold until Jan 1 because last year I got solar and new ac unit and insulation. I would not be able to get the rebate. I also knew things could change this year and I am hoping they do get it passed. Not only for me and my new Leaf but Ford new cars as well.
 
Smidge204 said:
I have never owed the Feds anything extra on tax day. In fact I typically get ~$1,000 back. The most I ever owed was about $80 to the state. You could roll it over for infinity and I'd never see it unless something fairly major changes.
You are wrong, Smidge, but this is good news. It doesn't matter whether you pay your taxes on tax day or throughout the year by payroll deductions, they still count as taxes. So, as an example, if you have $500 per month deducted from your paychecks in 2011 you will have paid $6,000 in taxes for the year. If you would otherwise get $1,000 back in April of 2012, you will still have paid $5,000, and you will get all of that back for buying a LEAF this year. The rollover would allow you to get $2,500 more back in 2013.

If it were made a rebate or "fully refundable credit" then, in the case above, the government would be paying you $2,500 more than you paid them, all because you graciously offered to be a citizen and accept their services - homeland protection, food safety, medical coverage in your old age, etc. Frankly, that doesn't sound like a fair bargain to me.
 
planet4ever said:
You are wrong, Smidge, but this is good news.
Yeah, that's why I went into Engineering instead of Accounting - the math is easier :lol:

Thanks for the clarification. I should probably pay more attention to that "how the rebate works" thread...
=Smidge=
 
Smidge204 said:
planet4ever said:
You are wrong, Smidge, but this is good news.
Yeah, that's why I went into Engineering instead of Accounting - the math is easier :lol:

Thanks for the clarification. I should probably pay more attention to that "how the rebate works" thread...
=Smidge=

Sadly, Smidge, you're not alone. Not by a long shot. And the Gov't relies on this.....you don't notice the $500/month they take, so $6,000 in taxes.....eh no big deal.

Imagine how upset you'd be if on April 15th each year, the Gov't sent you a bill for $6,000. You (and the rest of the country) would go ballistic!!! It's 'death by a thousand cuts'. :evil:

I start working on my taxes next month. I'm sure my ire towards the IRS will only get worse......
 
drees said:
evnow said:
- people who have to pay AMT will still get the 7.5K rebate
I'm pretty sure that the EV tax credit is not subject to AMT as previously discussed.
You are right. I guess I forgot about it (EVSE credit is affected, I think). I'll update the OP.
 
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