Increase in tax credit to $10K?

[Muleears]

Pardon me if this has been covered before (I didn't find it) but does anyone know more about:

President Obama's proposal calls for the electric vehicle tax credit to increase from $7,500 to $10,000 and to become a point-of-sale rebate—but it would no longer based solely on battery capacity (as it is now). The $10,000 credit could apply to all vehicles—even those that burn only gasoline—that are at least 25 percent more "fuel" efficient than government targets.

Being on the verge of pulling the trigger, I would like to know when this might happen.

 

[jimcmorr]

I heard about an increase to the electric vehicle tax credit to $10,000 being proposed for the 2013 budget/tax year and possibly being turned into a point of sale rebate but to extend it to all vehicles was not part of what I heard.

Keep in mind that everything I said above is purely hearsay and may not be worth much in the real world. :?

 

[coqui]

I also have heard about the increase to $10,000 for the EV tax credit beginning 2013. Not for all vehicles. Only for EV's.

 

[lukati]

Needs an act of congress. Not going to happen until the election. Very doubtful after the election, unless the Democrats take the house.

 

[bill]

Yes, I've read the same thing in multiple places. The proposal is to increase it 10k and make it a point of sale rebate too.
I have mixed feelings about this. While the 3.5k increase and rumored price decrease in the smyrna leaf will almost guarantee one will be in my driveway, using tax payer money to subsidize EVs is such a political hot button. My next concern is that this will be another cash for clunkers. As soon as dealers hear "point of sale rebate" they bump the price and pocket the money. Having a tax rebate discourages this.

 

[EdmondLeaf]

Discussed in the past already

2012 Budget Proposes Higher Tax Credit For Plug-In Cars
http://www.mynissanleaf.com/viewtopic.php?f=7&t=7908

Pardon me if this has been covered before (I didn't find it) but does anyone know more about:

President Obama's proposal calls for the electric vehicle tax credit to increase from $7,500 to $10,000 and to become a point-of-sale rebate—but it would no longer based solely on battery capacity (as it is now). The $10,000 credit could apply to all vehicles—even those that burn only gasoline—that are at least 25 percent more "fuel" efficient than government targets.

Being on the verge of pulling the trigger, I would like to know when this might happen.

 

[TomT]

The chance of this actually happening is somewhere between slim and none... And applying it to any vehicle that burns only gas in any form would be bad policy anyway, IMHO... It's 99 percent political posturing...

President Obama's proposal calls for the electric vehicle tax credit to increase from $7,500 to $10,000 and to become a point-of-sale rebate—but it would no longer based solely on battery capacity (as it is now). The $10,000 credit could apply to all vehicles—even those that burn only gasoline—that are at least 25 percent more "fuel" efficient than government targets.

 

[EVDRIVER]

Posturing to negotiate to keep the $7500 in place likely.

 

[Herm]

the existing $7500 tax credit is easy to do, all it takes is a change in the tax code, administered by the IRS.. but any sort of EV Federal Rebate is much more difficult since it has to be funded every year, and if it actually passed it would die quickly the moment a politician wanted to make a point.

Disadvantage of the existing credit is that it only applies to those that pay taxes. Tax slackers cant benefit unless they lease.

 

[kubel]

While this would be nice for people that want to buy an EV, you have to remember that our country is almost bankrupt. We just don't have the money to subsidize cool stuff. Article 1 Section 8 will be looked at very closely over the next few years as a means to cut spending, so I would be doubtful if Congress extends the $7500 credit beyond its original Recovery Act limits.

I'm jumping on the LEAF now since that $7500 is getting less valuable every day with inflation, and you can pretty much bet that the 2013 LEAF will go up in price like the 2012 did. More features + greater cost + higher inflation = More expensive LEAF.

 

[thankyouOB]

While this would be nice for people that want to buy an EV, you have to remember that our country is almost bankrupt. We just don't have the money to subsidize cool stuff. Article 1 Section 8 will be looked at very closely over the next few years as a means to cut spending, so I would be doubtful if Congress extends the $7500 credit beyond its original Recovery Act limits.

I'm jumping on the LEAF now since that $7500 is getting less valuable every day with inflation, and you can pretty much bet that the 2013 LEAF will go up in price like the 2012 did. More features + greater cost + higher inflation = More expensive LEAF.

our country is not near bankruptcy, otherwise we would not be able to sell bonds at less than the rate of inflation.
I erased the rest of my discussion because I am tired of burdening this place with politics.

To answer the original OP: if you want to buy the car, take the bird in the hand. The goopers are never going to let this pass in the House and they would talk it to death in the Senate.
If you want to bet on a Democratic Congress and President in 2013, go ahead and wait, but even that group may not increase the rebate.

 

[LTLFTcomposite]

While this would be nice for people that want to buy an EV, you have to remember that our country is almost bankrupt. We just don't have the money to subsidize cool stuff.

Thank you!

Besides, isn't the point of the subsidy to "prime the pump" and accelerate early adoption of new technology to hasten it ultimately standing on its own merits?

I don't think we want to have the government permanently in the business of collecting tax dollars, then handing them back out to people to buy new cars. There has to be a legitimate reason, which in this case there is for a period of time, but it should not be forever.

 

[QueenBee]

I don't think we want to have the government permanently in the business of collecting tax dollars, then handing them back out to people to buy new cars. There has to be a legitimate reason, which in this case there is for a period of time, but it should not be forever.

I agree but have decided that getting off of oil is a critical issue to national defense which of course is a legitimate function of government so I happily support alternative energies

 

[kubel]

I agree but have decided that getting off of oil is a critical issue to national defense which of course is a legitimate function of government so I happily support alternative energies

Very true. Foreign oil is, I think, our second biggest national defense issue (first being our debt, which is directly related to wars which are ultimately related to oil, which is also related to terrorism- what a mess!). I think the government has been going about it all wrong. We are engaging in war to strategically secure our oil interests in the middle east while oil companies are lobbying our politicians to give them subsidies despite them enjoying record profits. It's a huge mess.

But I would much rather see us get out of the foreign wars and drug wars, and take a tenth of that money we spent on that, and invest it in providing tax credits. It would be more than enough to allow us to take a $10,000 tax credit. But we have to cut spending elsewhere first. Military spending is a good place to start. War sucks, and my addiction to oil is fueling the death and destruction and waste associated with it.

 

[smkettner]

While this would be nice for people that want to buy an EV, you have to remember that our country is almost bankrupt. We just don't have the money to subsidize cool stuff. Article 1 Section 8 will be looked at very closely over the next few years as a means to cut spending, so I would be doubtful if Congress extends the $7500 credit beyond its original Recovery Act limits.

I'm jumping on the LEAF now since that $7500 is getting less valuable every day with inflation, and you can pretty much bet that the 2013 LEAF will go up in price like the 2012 did. More features + greater cost + higher inflation = More expensive LEAF.

I would be OK giving a tax credit on all vehicles that meet certain MPG ratings. And of course to make it cost nothing have it funded by a tax on vehicles that get the worst mileage. Tax credit should roll forward over 3 or 4 year period if needed and ownership is retained.

 

[muus]

I would be OK giving a tax credit on all vehicles that meet certain MPG ratings. And of course to make it cost nothing have it funded by a tax on vehicles that get the worst mileage. Tax credit should roll forward over 3 or 4 year period if needed and ownership is retained.

Yeah ok, any car that get more than 70 MPG should be eligeable for the tax credit. :lol:

 

[toasty]

so I would be doubtful if Congress extends the $7500 credit beyond its original Recovery Act limits.
.

when does the current offer end?

 

[intrepion]

so I would be doubtful if Congress extends the $7500 credit beyond its original Recovery Act limits.
.

when does the current offer end?

I believe it gets phased out after a company has manufactured 200,000 eligible cars. So it may be different for each company.