2012 Budget Proposes Higher Tax Credit For Plug-In Cars

[EdmondLeaf]

if adopted you will be sorry that you got less?

The budget also suggested that the tax credit for purchase of an electric vehicle be raised from its current $7,500 to $10,000.

http://www.greencarreports.com/news...t-proposes-higher-tax-credit-for-plug-in-cars

 

[redLEAF]

Nope -- we also get a 10% off MSRP from the IL EPA out this way + lower license fess + opportunity cost associated with a trade-in that would be worth less by the time (and if) this was every to go into effect so, I'd applaud it to get more folks into the fold but it wouldn't bother me if I missed out on a bigger tax credit --- also, as it would add $2,500 it would be out of reach for that much more people who don't pay enough in income taxes to take full advantage versus the current program --- how much more in income would one need to make should be the question posed ?


EDIT: as this was still on the first page, thought I would add an edit as my accountant just finished our '11 taxes; as we lost a dependent (last kid out of college) having the $7,500 tax credit worked well for us; as others have already found out we could not take the credit for the EVSE install on the same return, but had some modest energy improvements to the house that we could take. All this tax stuff ties into timing and what else you have going on during a particular tax year. I wouldn't imagine lower 'earned' income folks (those in early careers or those already retired) to benefit from either the current or possible increased tax credit. We're still waiting for our IL EPA EV 'refund' that I'm thinking may show up as income for this tax year but if that's the case we'll try to offset it by dumping some of our loosing stocks if need be. Did we get the LEAF simply because of the tax credit; no, but at the selling price without it ($38,240 !) most people would have more than likely picked something entirely different or simply wait for the selling price to drop to just a 'slight' premium over a non-EV in a few more years ... hence an incentive is just that, misson accomplished !

 

[Nubo]

A direct rebate would be more stimulative, like the one CA has. On the other hand it's a lot harder for a conservative congressman to argue *against* a tax cut. :lol:

 

[evnow]

A direct rebate would be more stimulative, like the one CA has. On the other hand it's a lot harder for a conservative congressman to argue *against* a tax cut. :lol:

Not at all. They just call it a subsidy & argue against it.

The problem with rebate is - it needs to be funded every year. This makes it vulnerable to cuts. Tax credits are passed once and until they expire, no legislative action is needed to keep them going. So, politically, tax credit is a lot easier to sustain over years compared to a rebate.

 

[thankyouOB]

That is great news. Bravo Obama.

However, I have no regrets at all.
I am quite happy with the bird in the hand; Passage of this will be difficult if not impossible. has the gooper House approved any Obama budget yet?
besides, I have been driving and saving 2k on gasoline for almost a year, and that-- including HOV access -- is worth more than I can say. When all is said and done, the higher sale price will likely mean that you still wont be able to buy a Leaf for the 20k and change plus tax, that it cost me in April 2011.

 

[smkettner]

Maybe the credit should roll forward up to four years so it can benefit the masses without leasing.

 

[Pipemajor]

This is actually on the just-proposed 2013 budget. Pretty much a wash since the $2500 tax credit for home charging stations will be eliminated. As I understand it will be a direct rebate at purchase instead of the after-the-fact tax credit which can be taken.

I doubt this will make it into the final budget since the "drill-here/drill-now" conservatives will attack it as "wasteful spending".

 

[thankyouOB]

This is actually on the just-proposed 2013 budget. Pretty much a wash since the $2500 tax credit for home charging stations will be eliminated. As I understand it will be a direct rebate at purchase instead of the after-the-fact tax credit which can be taken.

I doubt this will make it into the final budget since the republicans will attack it as "wasteful spending".

fixed your typo.

 

[planet4ever]

Pretty much a wash since the $2500 tax credit for home charging stations will be eliminated.

Riiiight. Have you found anyone who was actually able to get a "$2500" charging station credit? Most people get zero. I'm lucky: I leased, so I'm going to get about $250.

Incidentally, it is capped at $1000 for 2011, not $2500, and has already been eliminated for 2012.

Ray

 

[GPowers]

A federal "Rebate" would help people that do not have a tax liability large enough to cover the $7,500 tax CREDIT.

 

[DaveinOlyWA]

well lease and get the entire 10,000 for sure but to me it only covers the price hike of the 2012's anyway

 

[TLeaf]

No personal regret here as the early 2011 cars were at least that much cheaper (if not more) than the 2012s. Combined with the added benefit of having saved ~$1,000 in gas prices over the past year and this deal still resonates as a no-brainer in my mind.

I am curious about the effort to increase the credit, though, as it would seem to be just that much more ammunition for the "right" half of the country to oppose electrification. Seems to me that the better use of this money would be on expanding the charging infrastructure as others have mentioned. Given the choice between a further 7% reduction in the price of an electric car or an extra fast charger in a place where I could truly use it, I think I would have to go with the fast charger..

 

[TomT]

And in the case of California, a $5,000 rebate rather than a $2,500 one...

No personal regret here as the early 2011 cars were at least that much cheaper (if not more) than the 2012s. Combined with the added benefit of having saved ~$1,000 in gas prices over the past year and this deal still resonates as a no-brainer in my mind.

 

[cdub]

well lease and get the entire 10,000 for sure but to me it only covers the price hike of the 2012's anyway

haha... well since there's no chance in HELL that the Rs will let this go through until after the election and then only if O is re-elected...

I declare this whole thread moot.

 

[GRA]

well lease and get the entire 10,000 for sure but to me it only covers the price hike of the 2012's anyway

haha... well since there's no chance in HELL that the Rs will let this go through until after the election and then only if O is re-elected...

I declare this whole thread moot.

+1

 

[WilsonSATX]

This is an old thread, and you guys already declared it moot... But I enjoyed reading the philosophical discussion and hindsight. I'm curious if any of you bought your Leafs because you were concerned about gas prices spiking, gas shortages like the 1970's, stuff like that. I teach economics, and the economics of the Leaf justified the purchase in my mind. But at the time (March 2012) that we were car shopping, my concerns about future Middle East instability really tipped the scales toward an EV that I could power with solar panels on my own roof. Did any of you think along those lines, or am I some kind of pre-apocalyptic nut?

 

[derkraut]

This is an old thread, and you guys already declared it moot... But I enjoyed reading the philosophical discussion and hindsight. I'm curious if any of you bought your Leafs because you were concerned about gas prices spiking, gas shortages like the 1970's, stuff like that. I teach economics, and the economics of the Leaf justified the purchase in my mind. But at the time (March 2012) that we were car shopping, my concerns about future Middle East instability really tipped the scales toward an EV that I could power with solar panels on my own roof. Did any of you think along those lines, or am I some kind of pre-apocalyptic nut?

What you've stated above is primarily why I bought the LEAF. After 14 months/9000mi., I feel better every day for making this decision.

 

[TonyWilliams]

+2

I bought the LEAF for many reasons, but acknowledging the risk of oil prices going significantly up, or shortages developing, were certainly high on the list.

I had 8kW of solar put on my roof two months after delivery of my LEAF. No house electric bill or gasoline bill for me.

 

[adric22]

This is actually on the just-proposed 2013 budget. Pretty much a wash since the $2500 tax credit for home charging stations will be eliminated.

Yeah, but the charging station is not a requirement for all EV and PHEV drivers. I think I saw on a poll that about half of the Volt drivers just use the L1 that came with the car. I'm not sure what percentage of Leaf owners do, but I'm thinking somewhere between 10% and 20%.