EV Tax Incentive [closed due to political discussions]

[EVCanuck]

Tesla would benefit the most if EV incentive would be scrapped altogether for all manufacturers

Advertisement

 

[TheLastStarfighter]

I would love more EV incentives to help me, personally. I don't think they are needed. Tesla is the most valuable car-maker in the world. GM is going all-EV, starting with Cadillac. Neither gets the credit now. Several nations have banned gas cars by 2035. VW is going electric. I don't see what further credits will do to get automakers to switch to EV's.

I think the Government approach should be different. Parts of legislation should include:

-From a US perspective, they should support companies converting factories to EV's so the country isn't left behind by the change. You don't want to save the environment but have all the cars made in China.

-Rebates/grants for lower income buyers to choose EV's. Personally, I wouldn't make it income-based, as I find that tends to hurt the middle class, but I think there needs to be something to help lower income people choose an EV. I've done the math and if I buy a Cybertruck even with higher payments I'll be neutral or even save vs. my much cheaper Challenger thanks to saving on gas. Great for me that I can finance it, but lower incomes can't cover the up-front cost. This leads to "energy poverty" whereby people who can afford it get to stop paying gas and poor people get screwed. So some sort of rebate to help. For me this would be a flat rate on any EV purchased, at a set amount which makes it more viable. Maybe it's $2000 per car, any car. If you hate rich people you could cap the value of the car or personal income, but like I said I wouldn't bother. The vast majority of people buying would be the non-rich, and the value vs vehicle and income is obviously much greater to lower incomes and prices, so it does what's needed regardless. So this incentive isn't about helping the EV transition, but rather helping everyone to benefit from the change.

-Motivate the transition with gas taxes. Nothing too crazy, but buying an EV in Canada is a no brainer because our gas is twice as much as the US. Pay for the above programs and other initiatives with gas/carbon taxing and help move things along. This has to be combined with rebates mentioned above so again, poor people don't get screwed.

 

[Jimo]

So now that the left is in power, do you think they’ll remove the $7,500 tax incentive limitation for Tesla?

When Tesla reached a certain sales quantity, the incentive was removed.

 

[Ehninger1212]

I am doubtful we will see this happen.. but I sure am hopeful.

 

[Rozonoe]

IMO if the 7500 tax credit gets extended have a price limit such as $50-60K, if you can afford a $90K car you don't need a tax break and have the rebate come off the price of the car when you purchase instead of when you do your taxes

If the new administration does increase the tax rebate on EVs they will get their money back in other increased taxes

To me, the main incentive for tax credit for acquiring an EV, is about removing as much ICE vehicle from the planet, regardless of the price of the vehicle. The fact that rich people don't need the tax incentive is not a reason for not giving the rebate as rich people are "tight with there money" & to save a few thousands, they will choose the EV versus the ICE. My 2 cents worth.

 

[Rozonoe]

My suspicion is that EV's are not ALWAYS going to be vastly cheaper to "fuel" for much longer as adoption rates of EV's climb. There is a lot of money lost is bypassing gas taxes. My state is already vastly increased the plates registration to start to compensate for those lost monies. I still think overall its going to be cheaper mileage but not nearly as wide of a gap. Illinois originally tried to pass (it failed) a $1000 per year EV registration fee but now it currently sits at $251....

They will increase the carbon tax to offset the lost of tax revenue.

 

[Ryan95738]

Remember that a credit insures that BEVs are "Made by billionaires, bought by millionaires and paid for by the rest of us". Don't be so sure that the Dems are going to push for this.

You have to remember that most democratic leaders are a millionaires and they support the billionaires because they want their money honestly Democratic leaders never care about the little guys they just give them the service and then screw them over in the end

 

[Jimo]

To me, the main incentive for tax credit for acquiring an EV, is about removing as much ICE vehicle from the planet, regardless of the price of the vehicle. The fact that rich people don't need the tax incentive is not a reason for not giving the rebate as rich people are "tight with there money" & to save a few thousands, they will choose the EV versus the ICE. My 2 cents worth.

I agree about wealthy people using the incentive/rebate. Most wealthy people got there by being smart with their money. Conversely, many poor people got there by poor choices.
A wealthy friend of mine once said, "How do you think a man like me got to be a man like me?"

 

[Crissa]

You have to remember that most democratic leaders are a millionaires and they support the billionaires because they want their money honestly Democratic leaders never care about the little guys they just give them the service and then screw them over in the end

The median Democratic elected official has less net worth than the median Republican.
https://www.opensecrets.org/personal-finances
And the median Democratic politician more closely matches the median American in political position than Republicans
https://www.forbes.com/sites/kenrap...licans-differ-on-matters-of-wealth--equality/

Tesla would benefit the most if EV incentive would be scrapped altogether for all manufacturers

Yeah, but that means fewer places for us to charge our vehicles. Gotta have the demand to prompt the market to give the supply.

-Crissa

 

[Blue Steel]

Right now a middle class person can buy a used EV in Oregon and get a $5000 cash rebate from the state. Some used EVs don't cost much more than $5000 (like say a lease return Fiat 500e), meaning you could get a cheap work car for almost nothing here. This is before calculating gas savings... I've tried to explain this to several coworkers and friends and they think I'm making it up.

I think incentives are great to get this started, but maybe we need some better marketing.

 

[Ryan95738]

Right now a middle class person can buy a used EV in Oregon and get a $5000 cash rebate from the state. Some used EVs don't cost much more than $5000 (like say a lease return Fiat 500e), meaning you could get a cheap work car for almost nothing here. This is before calculating gas savings... I've tried to explain this to several coworkers and friends and they think I'm making it up.

I think incentives are great to get this started, but maybe we need some better marketing.

I sure wish Washington State had this. When I bought my use Nissan leaf instead of an incentive I had an extra $400 of tax

 

[biovmrct22]

The incentives when they were introduced tried to do 2 things. 1) Encourage buyers with a tax discount to help adoption. 2) Incentivize manufacturers to build EV/hybrid vehicles with a bigger market possibility.
I don't see the manufacturers incentive as a good carrot anymore. With Tesla/VW and others showing the late comers that they either build zero emission vehicles very soon or join the list of Studebaker/Packard etc.
I would hope that the incentive does change to include all qualified vehicles and maybe have an income phase out like California. My CT reservation is probably 2 years out so I've got my fingers crossed but is not a variable in my purchase decision.

I completely agree. I'm in the same boat (CT in about 2 years...)

 

[TheLastStarfighter]

To me, the main incentive for tax credit for acquiring an EV, is about removing as much ICE vehicle from the planet, regardless of the price of the vehicle. The fact that rich people don't need the tax incentive is not a reason for not giving the rebate as rich people are "tight with there money" & to save a few thousands, they will choose the EV versus the ICE. My 2 cents worth.

Yeah, I hate excluding "rich" people from things because rich is subjective. Virtually all of us typing on this page are "rich" compared to a big chunk of the global population, since we obviously have internet access, power, literacy, etc. More specifically to the US, and the idea of "rich" when it comes to buying an EV, I find the financial thresholds are generally poor policy, because again, it's hard to determine who's "rich". And if they are rich, do we not want to incentivize them to make the better choice? Canada has an EV credit, and a friend of mine bought the base Model 3 because the LR didn't qualify. He has regretted the decision from Day 1, because he can't get to the city on a single charge, especially in winter. Is that what we want? And what is the financial threshold? Especially if you combine carbon tax with EV incentives, someone is going to be just over the threshold but not super rich and paying more tax without the EV benefit. It usually ends up being middle or upper-middle class people stuck in that limbo.

So I always just say decide on a credit that makes sense, and give it to everyone. That's not totally equitable, but $2000 will mean more to someone making $40,000 than Elon Musk, so it does naturally help average people much more than millionaires, and you reduce your admin costs by making the process simpler, and no one can complain that the program isn't for them.

 

[ajdelange]

It's quite easy to determine who is rich. I think we all agree that the rich should pay more taxes and clearly the people who should pay more taxes are any people who have more than you do. Voila!

 

[Jimo]

I sure wish Washington State had this. When I bought my use Nissan leaf instead of an incentive I had an extra $400 of tax

I'm going to make you feel better, now... When I bought my Tesla Model X, since Tesla doesn't have dealers, I had to pay $10,000 sales tax and registration when I registered it in my home state!