[Yossarian]

This is a long way from becoming law, but I suspect that some version of it will be enacted in the name of helping to pay for the infrastructure bill. While the income limit may not come into play for many of us planning to purchase a Rivian, the lack of the tax credit impacts affordability and may result in fewer EV sales.

Senate backs non-binding measure calling for limits on EV tax credits
People making more than $100,000 a year would be unable to claim EV tax credits; no credits allowed for EVs that cost more than $40,000.

 

[CommodoreAmiga]

My next vehicle is going to be an EV, so it doesn't change that.... But it does make the choice a bit more difficult, as the GMC Hummer EV Truck will be closer in actual price.

 

[Wildabeest]

It won’t affect my decision on what my next car purchase will be, but it will affect my decision to buy something else with that $7500!

 

[jjswan33]

It will never become law. This amendment wIll never make it through the house. This would be counterproductive to the spirit and goal of the EV incentives namely to equalize the higher cost of BEVs.

I would bet money that if the EV tax credits are updated at all it would be to remove the cap (affecting Tesla and Chevrolet) and possible the other proposal from Biden to increase credits for US made vehicles and Union made vehicles. Also they may update it to be a direct credit you get at purchase. Possibly a credit for used EVs. Any of these is more likely than the above.

 

[Chris S]

If it passes, I'd hope Rivan and other impacted manufacturers would lower their prices accordingly like Tesla did when their tax credit eligibility expired.

 

[Toha]

Its already a reality in Canada, any ev over 50k is not allowed for any rebate so I wouldn't be surprised if you guys get the same thing .

 

[87Ducks]

Does not affect by decision to purchase. My personal belief if someone needs a tax credit to borrow money for a house, have a kid, buy a car, etc. then they really can't afford it the first place. That said, I will always take money from the government if offered as they take enough from me as it is. My greater concern is the tax breaks will only be offered on purchases of EV vehicles built with UAW labor from the "Big 3". Nothing like a little cronyism to shut out the upstart competitors. .

 

[jjswan33]

IMO this all really depends on what the purpose of the tax credits is. My understanding they are to offset the extra cost of a BEV so people choose the cleaner option when making a car buying decision. In the US >50% of cars sold are larger vehicles (trucks and large SUVs). Those typically have price tags larger than $40k. If the current US administration wants >50% of vehicles sold by 2030 to be electric then either the cost of the electric vehicles has to be less compared to similar gasoline version or they need to offer a credit to level the playing field.

I'll be buying one either way though.

 

[CommodoreAmiga]

Trucks pollute more than vehicles that are more fuel efficient. The government should be going out of their way to encourage EV truck development and adoption. Period.

 

[Michael]

This is a long way from becoming law, but I suspect that some version of it will be enacted in the name of helping to pay for the infrastructure bill. While the income limit may not come into play for many of us planning to purchase a Rivian, the lack of the tax credit impacts affordability and may result in fewer EV sales.

Senate backs non-binding measure calling for limits on EV tax credits
People making more than $100,000 a year would be unable to claim EV tax credits; no credits allowed for EVs that cost more than $40,000.

So basically no more tax credits for anyone

 

[rwhartman]

Does not affect by decision to purchase. My personal belief if someone needs a tax credit to borrow money for a house, have a kid, buy a car, etc. then they really can't afford it the first place. That said, I will always take money from the government if offered as they take enough from me as it is. My greater concern is the tax breaks will only be offered on purchases of EV vehicles built with UAW labor from the "Big 3". Nothing like a little cronyism to shut out the upstart competitors. .

I was first a union member in high school as a retail clerk. I was a Teamster dock worker in college. I was a union member as a federal employee for forty years. I would like to see the UAW organize new auto makers in line with their other negotiated agreements with other automaker. I’m confident that the corporations will seek out their own tax gifts.

 

[Spokane Electric]

This is a long way from becoming law, but I suspect that some version of it will be enacted in the name of helping to pay for the infrastructure bill. While the income limit may not come into play for many of us planning to purchase a Rivian, the lack of the tax credit impacts affordability and may result in fewer EV sales.

Senate backs non-binding measure calling for limits on EV tax credits
People making more than $100,000 a year would be unable to claim EV tax credits; no credits allowed for EVs that cost more than $40,000.

It is important to remember that this amendment was an advisory one--it is likely simply a talking point for the Senator in question who is looking ahead to the next election.

 

[Spokane Electric]

I was first a union member in high school as a retail clerk. I was a Teamster dock worker in college. I was a union member as a federal employee for forty years. I would like to see the UAW organize new auto makers in line with their other negotiated agreements with other automaker. I’m confident that the corporations will seek out their own tax gifts.

If anyone questions consumer subsidies for EV purchases, remind them of taxpayer subsidies for oil and gas exploration. Follow the money: US subsidizes oil and gas so investors never lose

 

[HughWylie]

If it passes, I'd hope Rivan and other impacted manufacturers would lower their prices accordingly like Tesla did when their tax credit eligibility expired.

I'm under the impression that the actual sales price of the Model 3 never went down, or at least not much and not for long. Currently Tesla lists the base price as $34,190, but that includes "...$1,500 California Clean Fuel Reward and potential incentives and gas savings for a total of $5,800." So the sale price is actually $41,490.

Similarly, the Model S is $89,990. On top of this, the Model S first came out in 2012. It's old.

So if Rivian lowers its prices like Tesla did, buyers will not see much savings.

 

[HughWylie]

In the U.S., the average new car sold for over $41,000. A $40,000 cut-off makes no sense. I'll go with those who think this amendment will not make it into the final bill.

 

[Chris S]

I'm under the impression that the actual sales price of the Model 3 never went down, or at least not much and not for long. Currently Tesla lists the base price as $34,190, but that includes "...$1,500 California Clean Fuel Reward and potential incentives and gas savings for a total of $5,800." So the sale price is actually $41,490.

It did. My Model 3 Performance purchased 3 years ago had a list price of $75,500, w/ a $7,500 tax credit. They subsequently offered a $5K post-sale rebate (which I took) in exchange for giving up free lifetime Supercharging.

 

[SANZCO2]

It did. My Model 3 Performance purchased 3 years ago had a list price of $75,500, w/ a $7,500 tax credit. They subsequently offered a $5K post-sale rebate (which I took) in exchange for giving up free lifetime Supercharging.

Still not down that much, the base purchase price for a performance Model 3 right now is 56,990 plus another 10K if you add the self driving. I would venture to say that 3 years ago, you had more options than they are currently offering as they really slimmed down any option choices for the newer models.

 

[jjswan33]

The other thing to consider when talking about Tesla and end of the rebate is they didn't really have competition except to themselves, GM/Nissan certainly didn't offer much competition for a Tesla performance model. If they saw sales dropping when the tax credit expired I am sure they adjusting things to try and boost sales. In the future there will be more competition and that will drive prices rather than tax credits. The exception is of course if some automakers have the tax credit and others don't, messy situation. I think they need to fix the phase out but we'll see what actually happens. There is a good chance that nothing passes with the situation in Washington DC.

 

[HughWylie]

It did. My Model 3 Performance purchased 3 years ago had a list price of $75,500, w/ a $7,500 tax credit. They subsequently offered a $5K post-sale rebate (which I took) in exchange for giving up free lifetime Supercharging.

Chris, Thanks for the info. I have to admit I was surprised a Model 3, regardless of how well optioned, could run $75,500. But I'm not sure how trading free lifetime Supercharging for $5K is a rebate. Tesla got something of real value in return for its $5K. Maybe I'm missing something. In general, I guess I'm still stuck with Musk's original narrative of the Model 3 as the affordable EV for everyone. Funny thing is, at $39,900 the "stripper" base Model 3 is very close to the average price of a new vehicle in the U.S. So Musk deserves credit for that.

 

[HughWylie]

I would happily give up all government rebates if the Feds would heavily incentivize private industry to build an extensive nation-wide fast-charging system. Give high priority to underserved locals. This seems like a better way than indidvual rebates to get people into EVs. Musk/Tesla would be a natural for the job, but I imagine there are others who would want in and do it well. Geographical coverage, if not the number of charging stations, should be as good as it is for gas stations.