voltamps
Posts: 189
Joined: Thu Dec 17, 2020 6:13 pm
Delivery Date: 14 Dec 2020

$7,500 Fed Tax Credit CHANGES in 2023 BIG TIME

It appears that the huge bill in Congress, including an overhaul of EV Tax Credits, will pass now. Not absolutely sure of it, but most analysts say it will. Stay tuned to see if this legislation passes:

Federal tax credit for EVs maintained at $7,500
Eliminates tax credit cap after automakers hit 200,000 EVs sold, making GM and Tesla once again eligible
The language in the bill indicates that the tax credit would be implemented at the point of sale instead of on taxes.
In order to get the full credit, the electric vehicle needs to be assembled in North America, the majority of battery components need to come from North America, and contain a certain percentage of minerals from countries with free trade agreements with the US.
A new federal tax credit of $4,000 for used EVs
Zero-emission vans, SUVs, and trucks with MSRPs up to $80,000 qualify.
Electric sedans priced up to $55,000 MSRP qualify.
The full EV tax credit will be available to individuals reporting adjusted gross incomes of $150,000 or less, $300,000 for joint filers.

More details:

New Vehicle Credit:

Manufacturer caps eliminated. (Page 370, line 15)
Credit applies for vehicles purchased beginning January 1, 2023. (Page 386, line 1).
Transition provision for EVs with written sales orders dated in 2022 prior to the date of President signing the bill but delivered in 2023 allows purchaser to claim the “old” credit in 2023. (Page 386, line 20).
Vehicle must be assembled in North America to qualify for new credit. (Page 366, line 15).
North American assembly requirement applies to vehicles sold after the date of adoption of the bill. (Page 386, line 3)
$7,500 credit is broke into two binary pieces meaning the vehicle either qualifies for each piece of the credit or it doesn’t. No longer based on size of battery. (Page 366, line 6)
$3,750 of the new credit is based upon the vehicle having at least 40% of its battery critical minerals from the United States or countries with a free trade agreement with the United States. This is a list of countries with free trade agreements with the US.(Page 371)
The other $3,750 of the new credit is based on at least 50% of the battery components of the vehicle coming from the United States or countries with a free trade agreement with the US. (Page 372, line 13)
The 40% minerals requirement increases to 50% in 2024, 60% in 2025, 70% in 2026 and 80% in 2027. (page 371 line 23)
The 50% battery components requirement increases to 60% in 2024, 70% in 2026, 80% in 2027, 90% in 2028 and 100% in 2029. (Page line 373)
The government has until the end of the year to develop guidance on the battery requirements. (Page 374)
Beginning in 2025, any vehicle with battery minerals or components from a foreign entity of concern are excluded from the tax credit. (Page 374, line 20).
One credit per vehicle. (Page 375, line 12)
Modified gross income limit of $150k for individuals, $225k for head of household, and $300k for joint returns. Definition of MAGI (page 375, line 22)
MSRP of vehicle must be $80k or less for SUVs, Vans and Trucks. $55k for all other vehicles. (Page 377, line 4)
Dealer can apply credit at time of sale. Dealer must disclose to buyer the MSRP of the vehicle, the applicable tax credit amount and the amount of any other available incentive applicable to the purchase. (Page 378, line 6)
Credit terminates December 31, 2032.

Used Vehicle Credit:

Tax credit of 30% of value of used EV with $4,000 cap (Page 387, line 23).
Used vehicle must be at least two model years old at time of sale. (Page 389, line 7).
The original use of the vehicle must have occurred with an individual other than the one claiming the used tax credit. (Page 389, line 10).
Used vehicle must be purchased from a dealer. (Page 390, line 3).
Used vehicle price must be $25k or less. (Page 390, line 5).
Used vehicle qualifies for tax credit only once in its lifetime. (Page 390, line 7)
Purchaser must be an individual (no businesses) to qualify for used credit. (Page 390, line 14).
Purchaser may only claim one used vehicle credit per three years. (Page 390, line 20).
Modified gross income cap of $75k for individuals, $112,500 for head of household and $150k for joint returns. (Page 388).
Credit may be applied at time of sale by dealer. (Page 391, line 15).
Credit terminates on December 31, 2032. (Page 391, line 12).

got all this from Electrek.co https://electrek.co/2022/07/27/senate-m ... esla-tsla/
2022 Leaf SV+
2020 Leaf SV - sold
2022 Maverick Hybrid
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& Some really junky gasoline vehicles, not green, except for a Ford C-Max Hybrid, nice one.
goldbrick
Posts: 1792
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Re: $7,500 Fed Tax Credit CHANGES in 2023 BIG TIME

Wow, if all that comes to pass I might have to update my 2017 Leaf, assuming I can find a newer one for sale anytime soon.
voltamps
Posts: 189
Joined: Thu Dec 17, 2020 6:13 pm
Delivery Date: 14 Dec 2020

Re: $7,500 Fed Tax Credit CHANGES in 2023 BIG TIME

@goldbrick, This could change a lot of buying strategy (correct spelling is actually "strategery").
It does have some hurdles ahead before passing. Vox had a good article on it ( https://www.vox.com/policy-and-politics ... gottheimer ) yet I don't know what the odds are it passes after all. Could get bogged down I guess????
2022 Leaf SV+
2020 Leaf SV - sold
2022 Maverick Hybrid
2016 Ford Focus Electric (traded in at 34k miles, 5 years)
& Some really junky gasoline vehicles, not green, except for a Ford C-Max Hybrid, nice one.
alozzy
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Location: Vancouver, BC
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Re: $7,500 Fed Tax Credit CHANGES in 2023 BIG TIME

Democrats and Republicans are so polarized that nothing of substance ever gets passed, particularly during mid-term elections. I wouldn't hold my breath...
Vancouver, CA owner of a 2013 Ocean Blue SV + QC, purchased 01/2017 in WA
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WetEV
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Location: Near Seattle, WA

Re: $7,500 Fed Tax Credit CHANGES in 2023 BIG TIME

alozzy wrote: Fri Jul 29, 2022 11:46 pm Democrats and Republicans are so polarized that nothing of substance ever gets passed, particularly during mid-term elections. I wouldn't hold my breath...
Republican's don't matter, in this case. Any one Democratic Senator getting sick and not able to vote, that would matter.
WetEV
#49
Most everything around here is wet during the rainy season. And the rainy season is long.
2012 Leaf SL Red (Totaled)
2014 Leaf SL Red (Sold)
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voltamps
Posts: 189
Joined: Thu Dec 17, 2020 6:13 pm
Delivery Date: 14 Dec 2020

Re: $7,500 Fed Tax Credit CHANGES in 2023 BIG TIME

If Kyrsten Sinema can be convinced to vote for it...... I mean, Manchin caved, maybe Sinema will too(?).
Listening to more "legislative experts", one is saying this reconciliation bill skips filibusters, and is far more likely than ever to pass due to the panic Dems have over losing control of the House & Senate at the end of this year. https://www.gibsondunn.com/inflation-re ... ncentives/

Trying to predict this one ain't E-Z. The genius IQ analysts can comment.
... google it weekly for news on it by using keywords: Did the Inflation Reduction Act of 2022 pass?
2022 Leaf SV+
2020 Leaf SV - sold
2022 Maverick Hybrid
2016 Ford Focus Electric (traded in at 34k miles, 5 years)
& Some really junky gasoline vehicles, not green, except for a Ford C-Max Hybrid, nice one.
dmacarthur
Forum Supporter
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Leaf Number: 306556
Location: Vermont

Re: $7,500 Fed Tax Credit CHANGES in 2023 BIG TIME

Trying to predict this one ain't E-Z. The genius IQ analysts can comment.
My two bucks says it passes..... although there are at least 49 people who will find every way they can to scuttle it.
2015 Leaf sold
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voltamps
Posts: 189
Joined: Thu Dec 17, 2020 6:13 pm
Delivery Date: 14 Dec 2020

Re: $7,500 Fed Tax Credit CHANGES in 2023 BIG TIME

voltamps wrote: Sat Jul 30, 2022 8:38 am If Kyrsten Sinema can be convinced to vote for it...... I mean, Manchin caved, maybe Sinema will too(?).
Sinema is a Yes vote now. This thing looks very likely.

Some may be sick with covid and I don't know how that's going to affect the final votes. They could maneuver thru that.
2022 Leaf SV+
2020 Leaf SV - sold
2022 Maverick Hybrid
2016 Ford Focus Electric (traded in at 34k miles, 5 years)
& Some really junky gasoline vehicles, not green, except for a Ford C-Max Hybrid, nice one.
goldbrick
Posts: 1792
Joined: Tue Aug 01, 2017 3:33 pm
Delivery Date: 01 Aug 2017
Leaf Number: 311806
Location: Boulder, CO

Re: $7,500 Fed Tax Credit CHANGES in 2023 BIG TIME

It all depends on how the bill ends up after reconciliation but yeah, it looks good at this point. Finally, a step in the right direction.
dmacarthur
Forum Supporter
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Location: Vermont

Re: $7,500 Fed Tax Credit CHANGES in 2023 BIG TIME

Manchin got all kinds of concessions for the energy giants, what will Sinema extract? still a good deal I suppose but....
2015 Leaf sold
2019 Leaf Plus S as of 9/30/19
Specialized Hardrock with Bafang midmount 750W
Liv Roam ebike
Stihl battery weedwacker and lawn mower

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