Many electric vehicles to lose big tax credit with new rules

[Yo_Mama_Been_Loggin]

Source: AP

WASHINGTON (AP) — Fewer new electric vehicles will qualify for a full $7,500 federal tax credit later this year, and many will get only half that, under rules proposed Friday by the U.S. Treasury Department.

The rules, required under last year’s Inflation Reduction Act, are likely to slow consumer acceptance of electric vehicles and could delay President Joe Biden’s ambitious goal that half of new passenger vehicles sold in the U.S. run on electricity by 2030.

The new rules take effect April 18 and are aimed at reducing U.S. dependence on China and other countries for battery supply chains for electric vehicles.

Electric vehicles now cost an average of more than $58,000, according to Kelley Blue Book, a price that’s beyond the reach of many U.S. households. The tax credits are designed to bring prices down and attract more buyers. But $3,750, half the full credit, may not be enough to entice them away from less-costly gasoline-powered vehicles.

Read more: https://apnews.com/article/electric-vehicles-tax-credit-7500-c562cb2d3509e93dc81d3b7d395725af

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The Treasury Department sets the rules?

[James48]

1. Yes.

It’s an income tax credit. The rules for tax treatment and credits are published as regulations by the Department of Treasury, Internal Revenue Service. Treasury is the parent department of IRS, and is who publishes regulations in the Federal Register.

https://www.federalregister.gov/public-inspection/2023-06822/section-30d-new-clean-vehicle-credit

[jimfields33]

2. Even at the current level is too high! 50,500 after current tax credit?

[William Seger]

4. Yes, but $58,000 is just the average price; there are EVs less than $30,000

E.g. Chevrolet Bolt and Nissan LEAF.

[garybeck]

7. Chevy Bolt is $27,500

The 2023 Bolt EV now has a base price of $27,495 before any tax credit

https://www.cars.com/articles/2023-chevrolet-bolt-ev-bolt-euv-prices-rise-as-gm-cites-ongoing-industry-challenges-460848/

[paleotn]

9. Wait a bit longer and you'll have a choice of reasonably priced models like the Bolt.

Big automakers are investing massively in EV's and are beginning to roll out reasonably priced models. Price average to date is heavily skewed by Tesla, but that's going to change quickly.

https://www.forbes.com/wheels/news/automaker-ev-plans/

[MichMan]

3. That is what was passed last Fall.

[JudyM]

5. "Later this year" is actually April 18?

Dayum.

[speak easy]

6. The full $7500 credit applies to cars under $55 and SUVs under $80.

It is designed to be an incentive to bring EV prices down, not a discount on supercars.

[OldBaldy1701E]

8. Of course we could just convert all the vehicles to alcohol.

But then anyone could create their own fuel. We cannot have that!

[SWBTATTReg]

10. And fyi, the avg. price of a regular new car was $42K, I didn't know that prices had gone up

so much when I had to return to the market to buy a replacement vehicle (new or used) to replace my vehicle. I was shocked to say the least. And of course, the electric car option was off the table, not just because of pricing, but as a realistic vehicle for me, the answer was no.

I drive less than 10 miles a week. I wouldn't even buy a car but here in STLMO, getting a cab is next to impossible, and Uber/etc. is expensive too, after some friends of mine told me how expensive it was, like $50 a trip for them (still within the city).

[Martin68]

11. Short-sighted fools.