$7,500 incentive for first 200,000 cars, what after?

[veramis]

3-4 years from now, when more manufacturers get into electric vehicles, Nissan will be closer to reaching their 200,000 vehicle limit to qualify for the full tax credit than the other manufacturers. When that time comes the electric vehicle market will be more competitive than now and Nissan may suffer a competitive disadvantage for being an early adopter today.

What do you think will happen? Will Nissan try to compete or scale back? Will the federal government increase the vehicle limit for Nissan?

Also, does Infiniti qualify as its own automaker that can produce 200,000 electric vehicles that receive the full $7,500 credit? And if so, can Nissan make multiple brands to take advantage of it?

http://www.irs.gov/irb/2009-48_IRB/ar09.html" onclick="window.open(this.href);return false;

"the total amount of the credit allowed for a vehicle is limited to $7,500. The new qualified plug-in electric drive motor vehicle credit phases out for a manufacturer’s vehicles over the one-year period beginning with the second calendar quarter after the calendar quarter in which at least 200,000 qualifying vehicles manufactured by that manufacturer have been sold for use in the United States (determined on a cumulative basis for sales after December 31, 2009) (“phase-out period”). Qualifying vehicles manufactured by that manufacturer are eligible for 50 percent of the credit if acquired in the first two quarters of the phase-out period and 25 percent of the credit if acquired in the third or fourth quarter of the phase-out period. Vehicles manufactured by that manufacturer are not eligible for a credit if acquired after the phase-out period."

 

[RonDawg]

Nissan will be closer to that 200k limit in 3-4 years, but by no means will they be close.

Nissan has only sold a bit over 27k Leafs TOTAL in the US in the first 2-1/2 years of sales here, so for Nissan to reach that limit in the next 3-4 years would mean sales would have to rise to the level of 50k a year, and I don't see that happening unless the price of fuel skyrockets to above, say $7/gallon.

Infiniti has already posponed (if not totally cancelled) their LE, so it will be a while before we see an Infiniti-branded BEV, if ever.

What happens when Nissan does reach that 200k mark will all depend on who's in control of Congress and who's occupying the White House.

 

[smkettner]

I think there will be another price drop for about 1/3rd to 1/2 the rebate.

I will be more curious when Tesla runs out of credits. Might be a mad dash at the end

 

[Nubo]

Wow, is that really the way it works? :?

I thought the point was to incentivize the early movers. The 200,000 should have been the sum for all sales. I.e, "you snooze, you lose". This sounds like "whenever you arise from your slumber we'll give you money". Stupid.

 

[DanCar]

If Republicans win the next Presidential election you can expect the EV incentive to be scaled back for all manufacturers. May also happen if Dems lose Senate majority. If Dems win house you can expect the incentives to increase.
So the point is, the situation is rather fluid.

 

[evnow]

If Republicans win the next Presidential election you can expect the EV incentive to be scaled back for all manufacturers. May also happen if Dems lose Senate majority. If Dems win house you can expect the incentives to increase.
So the point is, the situation is rather fluid.

So, you base all this on the fact that a Republican president signed the 7.5k tax credit bill, right

 

[thankyouOB]

If Republicans win the next Presidential election you can expect the EV incentive to be scaled back for all manufacturers. May also happen if Dems lose Senate majority. If Dems win house you can expect the incentives to increase.
So the point is, the situation is rather fluid.

So, you base all this on the fact that a Republican president signed the 7.5k tax credit bill, right

nice catch, evnow!

 

[kubel]

So, you base all this on the fact that a Republican president signed the 7.5k tax credit bill, right

And started Prism.

 

[RonDawg]

If Republicans win the next Presidential election you can expect the EV incentive to be scaled back for all manufacturers.

Regardless of who's occupying the White House, he (or possibly she) cannot "scale back anything" that is written into law without a cooperative Congress to make it happen. It's that whole "Checks and Balances" concept.

That's why I said earlier it depends who is President AND who is in Congress.

 

[Zythryn]

Nissan has already brought the pricing down.
After 200,000 EVs, many price savings can be found to replace the tax credit.
Sure, there will be a bump in price as most manufacturers are incorporating those savings as they come.

Toyota had almost no issues as their hybrid credits expired. I expect it won't be that big of an issue for Nissan either.

 

[DaveinOlyWA]

Nissan will be closer to that 200k limit in 3-4 years, but by no means will they be close.

Nissan has only sold a bit over 27k Leafs TOTAL in the US in the first 2-1/2 years of sales here, so for Nissan to reach that limit in the next 3-4 years would mean sales would have to rise to the level of 50k a year, and I don't see that happening unless the price of fuel skyrockets to above, say $7/gallon.

Infiniti has already posponed (if not totally cancelled) their LE, so it will be a while before we see an Infiniti-branded BEV, if ever.

What happens when Nissan does reach that 200k mark will all depend on who's in control of Congress and who's occupying the White House.

i am willing to bet Nissan hits more than 50,000 next year and it will continue to escalate from there