Treasury makes more electric SUVs eligible for tax credits

[Omaha Steve]

Source: AP

By MATTHEW DALY 2 minutes ago

WASHINGTON (AP) — The Treasury Department said Friday it is making more electric vehicles — including SUVs made by Tesla, Ford and General Motors — eligible for tax credits of up to $7,500 under new vehicle classification definitions.

The revised standards for EV tax credits follow lobbying by automakers that had pressed the Biden administration to change vehicle definitions to allow higher priced vehicles to qualify. Tesla CEO Elon Musk met with top aides to President Joe Biden last week to discuss the EV industry and the broader goals of electrification.

Under the sweeping climate law approved last summer, pickup trucks, SUVs and vans with a sticker price up to $80,000 qualify for EV tax credits, while new electric cars, sedans and wagons can only be priced up to $55,000. The rule had disqualified some higher-priced EVs, prompting complaints from Tesla and other automakers.

Ford and market leader Tesla both said in recent weeks that they are cutting prices on some EVs, in part to qualify for the new federal tax credit and spur buyer interest.



Read more: https://apnews.com/article/biden-elon-musk-technology-us-department-of-the-treasury-climate-and-environment-a4f6351ddc59b3cc69cc21bd2b95ffa6

[FredGarvin]

1. Excellent news!

Families across America have been waiting for this incentive.

10% off a $75,000 car is A LOT of savings!

[moniss]

3. In the aggregate over the course of a 72 month loan

it is around $9000 plus depending on your credit/interest rate. That's assuming the $7500 is used for the down-payment. On a monthly basis it isn't that big of a deal and it only figures to about $127/month using this example and one of the car loan calculators using an 8.5% rate with sales tax of 5%+. The monthly payment without the tax incentive and 0 down is a hair over $1400 while using the credit gives a payment just a ways under $1300.

I don't know about that monthly payment amount either way being family oriented. At least not any of the families I know. I think if that payment amount is comfortable for you then the $7500 and/or $127 isn't a deal breaker either way. I had a Volt way back years ago and I support the EV transition. Solid state batteries are not that far off and will change the game way more than anybody realizes right now. If you bought an EV today with current battery technology on a 6 year loan you will likely be badly eclipsed by the new performance of solid state batteries. One more thing to think about along with reducing an individual's carbon footprint as early as possible. Pluses and minuses to consider.

[Igel]

5. That'll work until 2024.

Then the percentage is set by statute.

I assume there'll be attempts to circumvent that and make the statute "living", that is, pliable and malleable.

https://www.congress.gov/117/plaws/publ169/PLAW-117publ169.pdf, page 140-1 of the PDF.

[RipVanWinkle]

2. So I guess Ford and Tesla are going to raise their prices

on the vehicles they had to lower prices on in order to qualify for the credit under the old rules.

[moniss]

4. Don't be surprised

if the "Delivery Fees and Destination Charges" go up. I don't know anybody who can really feel comfortable with new vehicle payments no matter if it's an EV or regular IC engine.

[nvme]

8. Those shits at Ford already Did!

I signed up to purchase(reservation) a F150 Lightning at 39k and now the same basic model is 54k .

[mahina]

14. awesome that you got in there though!

[Kaleva]

6. Does a tax credit benefit this who don't make enough to pay taxes?

Or pay little in taxes?

[friend of a friend]

10. Not for buying an EV, they should change it so anyone buying an EV gets a rebate.

[Kaleva]

11. Yes

[madville]

12. No, like me for instance

I paid $4000 in federal taxes this last year, so the most I could get back would be $4000.

[NowsTheTime]

7. Normally I am in favor of doing all we can to address climate change....

...but there must be a better way to increase the number of EV"s ?

Maybe research, or incentives to car companies to develop lower cost EV's , or maybe rebate for Hybreds.

I dunno but the cost of these vehicles is prohibitive for many.

[nvme]

9. we can support domestic production or watch another industry get outsourced

Which is the lesser of two evils

[madville]

13. Not to mention charging infrastructure

There aren’t currently home charging options for people in apartments, that have to park in the street, etc.

[mahina]

15. Toyota said they intend to retrofit cars to electric!

https://www.businessinsider.com/toyota-convert-older-cars-eco-friendly-models-curb-emissions-evs-2023-1

[NowsTheTime]

17. Interesting approach.....if they do and if it is feasible

[Owl]

16. Costs are indeed prohibitive, especially for retired people.