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Republican Tax Plan Kills Electric Vehicle Credit (arstechnica.com)
An anonymous reader quotes a report from Ars Technica: The nascent market for electric cars will suffer a big setback if the Republican tax plan released on Thursday enters into law. Among the changes to the current tax code would be an end to the Plug-In Electric Drive Vehicle Credit. That's the tax incentive that currently means up to $7,500 back from the IRS when you purchase a new battery or plug-in hybrid electric vehicle. Since the start of 2010, the EV tax credit has been $2,500 for a plug-in vehicle with at least 5kWh battery capacity. Every extra kWh nets another $417 up to a maximum of $7,500, although you would need at least that amount in income tax liability -- the IRS won't cut you a check to make up the full amount. It was never meant to be permanent; once an automaker sells 200,000 qualifying vehicles (starting from January 1, 2010) its eligibility is phased out over a matter of months. But in the almost seven years since, no one has reached that limit yet. Tesla will almost certainly be first, with General Motors not far behind; between them, they've sold a lot of Model Ses and Chevrolet Volts. If this tax plan is enacted, it will surely mean pain for both companies, as well as anyone else hoping to sell a lot of EVs here in the U.S. The data is pretty clear -- tax incentives sell electric cars, and the market for EVs can dry up very fast when they're abolished, as Georgia's recent experience shows.
Tax credit is not what you "get back". Tax credit is just a deduction from your income to get into a lower tax bracket.
No, that's wrong too.
A deduction reduces your taxable income before you calculate taxed owed on that income.
A tax credit is a credit against taxes owed, after you have calculated taxes on your taxable income. The cretit may be refundable (you get all of it) or non-refundable (you get no more than the amount to zero-out your tax liability.)
If it weren't for deadlines, nothing would be late.
The theory behind them is that it is to keep America potentially self sufficient when it comes to food. Left to the free market, we would buy much cheaper food from overseas and American farms would shut down, not that there is anything wrong with that from a free market perspective. However if war were to break out and our source of cheap overseas food cut off, it could lead to famine if we don't have a local ability to produce food up and running to jump in and pick up the slack.
How well the subsidies achieve this and whether they are the optimal amount, I dunno.
It's interesting that Tesla cars are currently the most "American-made" of any of the American car manufacturers, and these tax credits helped drive Tesla's success.
Most folks in the US would assume that Chrysler is an American car manufacturer.
It's not. Chrysler is owned by Fiat. Your good 'ole Dodge Ram truck . . . is an Italian product. What does Fiat mean . . . ?
Fehler in alle Teile.
Fix it again, Tony.
Failure in automotive technology.
Fart in a tin.
Fucking Idiot Assembled This.
. . . and my personal favorite . . .
Fucking Italian Automotive Trash!
No, I've never owned one . . . thank God. But a good friend had one, and got to experience everything that can go wrong with a car.
Schroedinger's Brexit: The UK is both in and out of the EU at the same time!
What burden? California (and other blue states) contribute more to the Federal budget than they receive. It's the red-leaning states that are typically the net recipients of everyone's Federal tax dollars. Perhaps we should first stop the agricultural subsidies, which are counter-productive in every way (except to make big agricultural companies and wealthy farmers more wealthy).
The real "Libtards" are the Libertarians!
They are not loosing billions. They are investing in factory and expansion. Why parent post got 5 stars?
Republicans are not anti government. Not now, not ever in modern times. Just another fake talking point with no connection to actual outcomes. "Small government" is simply code for massive foreign war apparatus, massive militarized police and prison complex with as much intrusion as possible to arrest undesirables, and the pork you mentioned, and all the other things. They don't favor reducing the size and cost, just moving money from social programs, science, etc to the parts of government they like, along with gutting anything standing in the way of helping the rich get richer.
Some individuals may want smaller government, but a vote for the Republicans is not a vote for it unless one is deeply ignorant of actual positions, although that seems like a majority. And it's sad that I have to explain this, but no I'm not saying the Dems are small government. Both parties are equally bad on many things.