Taycan tax credit question
07-03-2021, 01:35 AM
#1
Instructor
Thread Starter
Taycan tax credit question
I can't seem to find the answer to this online or searching here...
Could the $7500 tax credit expire for the Taycan at the end of 2021? I'm considering a CT 4 purchase with estimated December delivery.
Thanks!
Could the $7500 tax credit expire for the Taycan at the end of 2021? I'm considering a CT 4 purchase with estimated December delivery.
Thanks!
07-03-2021, 08:31 AM
#2
RL Community Team
Rennlist Member
Rennlist Member
the tax credit is based on units sold. porsche has a long way to go to reach the limit which I believe is 200k units sold
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07-03-2021, 11:25 AM
#3
Burning Brakes
The only way the current scheme goes away is if Biden’s proposed EV plan makes it into the reconciliation package as part of the infrastructure bill because Biden/Dems want the new EV credit to be for only American-made cars and non-luxury cars (perhaps under $75k). Even if that happens though, the new law would likely be effective Jan. 2022 (small chance it would be effective immediately). My understanding is that not enough senators would go for that and even if there’s an expansion of the EV credit, they’ll retain the current $7,500 credit for all EVs but increase the credit ($10k) for American-made non-luxury (or something along those lines).
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4dRennwagen (07-03-2021)
08-31-2021, 11:06 AM
#5
Instructor
One of the quotes I got for a lease, included the $7500 tax credit to reduce the price of the car effectively reducing the lease payment. Another quote had no mention of the tax credit. For those who lease, what is your experience with this? Thanks in advance.
08-31-2021, 11:34 AM
#6
Burning Brakes
Just helped my father lease a new Hyundai EV (he’s not into cars) and the dealer included the $7,500 federal tax credit and California’s $1,500 clean fuel rebate as discounts off the MSRP on the deal sheet. It should be factored into the lease for sure, whether they call it a tax credit, discount, incentive, etc.
08-31-2021, 11:42 AM
#7
Instructor
I took another look at the quote that breaks out the tax credit and curiously, the bottom line lease price is just slightly higher than the quote that does not include the rebate. That probably means that the other quote factors the rebate into the lease rate.
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09-03-2021, 09:32 AM
#9
Rennlist Member
The only way the current scheme goes away is if Biden’s proposed EV plan makes it into the reconciliation package as part of the infrastructure bill because Biden/Dems want the new EV credit to be for only American-made cars and non-luxury cars (perhaps under $75k). Even if that happens though, the new law would likely be effective Jan. 2022 (small chance it would be effective immediately). My understanding is that not enough senators would go for that and even if there’s an expansion of the EV credit, they’ll retain the current $7,500 credit for all EVs but increase the credit ($10k) for American-made non-luxury (or something along those lines).
09-03-2021, 11:02 AM
#10
Burning Brakes
Last edited by SS22; 09-03-2021 at 11:07 AM.
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991carreradriver (09-05-2021)
09-03-2021, 11:13 AM
#11
The only way the current scheme goes away is if Biden’s proposed EV plan makes it into the reconciliation package as part of the infrastructure bill because Biden/Dems want the new EV credit to be for only American-made cars and non-luxury cars (perhaps under $75k). Even if that happens though, the new law would likely be effective Jan. 2022 (small chance it would be effective immediately). My understanding is that not enough senators would go for that and even if there’s an expansion of the EV credit, they’ll retain the current $7,500 credit for all EVs but increase the credit ($10k) for American-made non-luxury (or something along those lines).
https://electrek.co/2021/08/11/us-se...ev-tax-credit/
Wonder if it has anything to do with converting corn to ethanol?
It was a good move on her part. Effectively eliminate the tax credit and reduce demand for EV's and the Dem's couldn't argue lest be painted as supporting the wealthy.
Last edited by flygdchman; 09-03-2021 at 11:27 AM.
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nycebo (09-03-2021)
09-03-2021, 11:26 AM
#12
Burning Brakes
It wasn't Dems / Biden that drove the change. It was Senator Deb Fischer (R-NE).
https://electrek.co/2021/08/11/us-se...ev-tax-credit/
Wonder if it has anything to do with converting corn to ethanol?
https://electrek.co/2021/08/11/us-se...ev-tax-credit/
Wonder if it has anything to do with converting corn to ethanol?
09-03-2021, 12:00 PM
#13
This was the position prior to Sen Fischer gift to EV's
$250K income and $80K vehicle price so you are right that it wouldn't have helped Taycan buyers but would have incentivized more broad adoption of EV's Expanding and extending the EV tax credit
"An extension of the federal EV tax credit with a 600,000-vehicle manufacturer cap and a credit cut from $7,500 to $7,000 was included in last year’s federal spending bill, with bipartisan support, but cut by the White House. Without Trump and economic advisor Larry Kudlow, the second time could be a charm. Biden’s campaign has said that he is likely to seek establishing a $250,000 household-income limit for claiming the credit. Lifting the ceiling that currently punishes GM and Tesla for their early success with plug-in vehicles could even the long-term playing field. "
https://www.greencarreports.com/news...talking-points
Clean Energy for America
"In an effort to promote electric vehicle sales and, in turn, reduce the nation’s carbon footprint, the U.S. Senate Finance Committee has advanced legislation the would reset the current EV incentive program and enable tax credits as rich as $12,500, but there’s a catch.
The current program, which was enacted in 2010, gives EV buyers a one-time federal income tax credit of $7,500. However, these credits are not permanent, and phase out in two steps during the calendar year after an automaker sells 200,000 electric cars and/or plug-in hybrids. As it stands those buying or leasing EVs from Tesla and General Motors do not qualify for the credit, as both have reached the sales threshold.
If enacted, the “Clean Energy for America” bill eliminates the current sales cap, but would phase out over a three-year period once 50 percent of all U.S. passenger-vehicle sales were fully electric. That’s not likely to happen any time soon, with EVs accounting for just 7.8% of U.S. new-vehicle sales in the first quarter of 2011, according to Kelley Blue Book. Still, that’s up from 4.8 percent of the market a year ago.
Sponsored by Michigan Democrat Debbie Stabenow, the bill would increase the existing credit by $2,500 for EVs assembled in the U.S., and another $2,500 on battery-powered models built in a factory in which the workers are members of or are represented by a labor union. That would mean a lower credit for Tesla, which builds their EVs in non-union U.S. plants, as well as imports coming from Asia and Europe. In addition, the credits would be limited to EVs costing less than $80,000, which would exclude higher-end Teslas and European imports altogether.
https://www.forbes.com/sites/jimgorz...h=7341a4966862
$250K income and $80K vehicle price so you are right that it wouldn't have helped Taycan buyers but would have incentivized more broad adoption of EV's Expanding and extending the EV tax credit
"An extension of the federal EV tax credit with a 600,000-vehicle manufacturer cap and a credit cut from $7,500 to $7,000 was included in last year’s federal spending bill, with bipartisan support, but cut by the White House. Without Trump and economic advisor Larry Kudlow, the second time could be a charm. Biden’s campaign has said that he is likely to seek establishing a $250,000 household-income limit for claiming the credit. Lifting the ceiling that currently punishes GM and Tesla for their early success with plug-in vehicles could even the long-term playing field. "
https://www.greencarreports.com/news...talking-points
Clean Energy for America
"In an effort to promote electric vehicle sales and, in turn, reduce the nation’s carbon footprint, the U.S. Senate Finance Committee has advanced legislation the would reset the current EV incentive program and enable tax credits as rich as $12,500, but there’s a catch.
The current program, which was enacted in 2010, gives EV buyers a one-time federal income tax credit of $7,500. However, these credits are not permanent, and phase out in two steps during the calendar year after an automaker sells 200,000 electric cars and/or plug-in hybrids. As it stands those buying or leasing EVs from Tesla and General Motors do not qualify for the credit, as both have reached the sales threshold.
If enacted, the “Clean Energy for America” bill eliminates the current sales cap, but would phase out over a three-year period once 50 percent of all U.S. passenger-vehicle sales were fully electric. That’s not likely to happen any time soon, with EVs accounting for just 7.8% of U.S. new-vehicle sales in the first quarter of 2011, according to Kelley Blue Book. Still, that’s up from 4.8 percent of the market a year ago.
Sponsored by Michigan Democrat Debbie Stabenow, the bill would increase the existing credit by $2,500 for EVs assembled in the U.S., and another $2,500 on battery-powered models built in a factory in which the workers are members of or are represented by a labor union. That would mean a lower credit for Tesla, which builds their EVs in non-union U.S. plants, as well as imports coming from Asia and Europe. In addition, the credits would be limited to EVs costing less than $80,000, which would exclude higher-end Teslas and European imports altogether.
https://www.forbes.com/sites/jimgorz...h=7341a4966862
09-03-2021, 12:10 PM
#14
Burning Brakes
This was the position prior to Sen Fischer gift to EV's
$250K income and $80K vehicle price so you are right that it wouldn't have helped Taycan buyers but would have incentivized more broad adoption of EV's Expanding and extending the EV tax credit
"An extension of the federal EV tax credit with a 600,000-vehicle manufacturer cap and a credit cut from $7,500 to $7,000 was included in last year’s federal spending bill, with bipartisan support, but cut by the White House. Without Trump and economic advisor Larry Kudlow, the second time could be a charm. Biden’s campaign has said that he is likely to seek establishing a $250,000 household-income limit for claiming the credit. Lifting the ceiling that currently punishes GM and Tesla for their early success with plug-in vehicles could even the long-term playing field. "
https://www.greencarreports.com/news...talking-points
Clean Energy for America
"In an effort to promote electric vehicle sales and, in turn, reduce the nation’s carbon footprint, the U.S. Senate Finance Committee has advanced legislation the would reset the current EV incentive program and enable tax credits as rich as $12,500, but there’s a catch.
The current program, which was enacted in 2010, gives EV buyers a one-time federal income tax credit of $7,500. However, these credits are not permanent, and phase out in two steps during the calendar year after an automaker sells 200,000 electric cars and/or plug-in hybrids. As it stands those buying or leasing EVs from Tesla and General Motors do not qualify for the credit, as both have reached the sales threshold.
If enacted, the “Clean Energy for America” bill eliminates the current sales cap, but would phase out over a three-year period once 50 percent of all U.S. passenger-vehicle sales were fully electric. That’s not likely to happen any time soon, with EVs accounting for just 7.8% of U.S. new-vehicle sales in the first quarter of 2011, according to Kelley Blue Book. Still, that’s up from 4.8 percent of the market a year ago.
Sponsored by Michigan Democrat Debbie Stabenow, the bill would increase the existing credit by $2,500 for EVs assembled in the U.S., and another $2,500 on battery-powered models built in a factory in which the workers are members of or are represented by a labor union. That would mean a lower credit for Tesla, which builds their EVs in non-union U.S. plants, as well as imports coming from Asia and Europe. In addition, the credits would be limited to EVs costing less than $80,000, which would exclude higher-end Teslas and European imports altogether.
https://www.forbes.com/sites/jimgorz...h=7341a4966862
$250K income and $80K vehicle price so you are right that it wouldn't have helped Taycan buyers but would have incentivized more broad adoption of EV's Expanding and extending the EV tax credit
"An extension of the federal EV tax credit with a 600,000-vehicle manufacturer cap and a credit cut from $7,500 to $7,000 was included in last year’s federal spending bill, with bipartisan support, but cut by the White House. Without Trump and economic advisor Larry Kudlow, the second time could be a charm. Biden’s campaign has said that he is likely to seek establishing a $250,000 household-income limit for claiming the credit. Lifting the ceiling that currently punishes GM and Tesla for their early success with plug-in vehicles could even the long-term playing field. "
https://www.greencarreports.com/news...talking-points
Clean Energy for America
"In an effort to promote electric vehicle sales and, in turn, reduce the nation’s carbon footprint, the U.S. Senate Finance Committee has advanced legislation the would reset the current EV incentive program and enable tax credits as rich as $12,500, but there’s a catch.
The current program, which was enacted in 2010, gives EV buyers a one-time federal income tax credit of $7,500. However, these credits are not permanent, and phase out in two steps during the calendar year after an automaker sells 200,000 electric cars and/or plug-in hybrids. As it stands those buying or leasing EVs from Tesla and General Motors do not qualify for the credit, as both have reached the sales threshold.
If enacted, the “Clean Energy for America” bill eliminates the current sales cap, but would phase out over a three-year period once 50 percent of all U.S. passenger-vehicle sales were fully electric. That’s not likely to happen any time soon, with EVs accounting for just 7.8% of U.S. new-vehicle sales in the first quarter of 2011, according to Kelley Blue Book. Still, that’s up from 4.8 percent of the market a year ago.
Sponsored by Michigan Democrat Debbie Stabenow, the bill would increase the existing credit by $2,500 for EVs assembled in the U.S., and another $2,500 on battery-powered models built in a factory in which the workers are members of or are represented by a labor union. That would mean a lower credit for Tesla, which builds their EVs in non-union U.S. plants, as well as imports coming from Asia and Europe. In addition, the credits would be limited to EVs costing less than $80,000, which would exclude higher-end Teslas and European imports altogether.
https://www.forbes.com/sites/jimgorz...h=7341a4966862
09-03-2021, 05:17 PM
#15
I’m aware of all that. Thanks for sharing, but I don’t get your point or what your argument is! What I said about Biden/Dems wanting to limit the new tax credit to only non-luxury cars is true, which I estimated to be about $75k and now you’re saying they wants to limit to $80k, is that what you’re arguing with me about?!
Relative to this forum it would appear that Taycan buyers are rather nonplussed regarding the potential loss of the credit.
Last edited by flygdchman; 09-03-2021 at 05:49 PM.