[Steverino]

Congress is planning to eliminate the credit after the 2017 tax year. So if you were on the fence about getting a new Volt or Bolt EV, you may want to act before the year ends to lock in the tax credit.

On the other hand, if EV sales plummet as a result of this action, there may also be some fire-sales as dealers try to dump inventory and GM debates whether to get out of the EV business in the US.

Meanwhile, China is pleased at our short-sighted politicians. They have a plan to dominate EV tech and we are going to help them by enabling the US market to backslide into 1950 thinking.

 

[Mister Dave]

.....and GM debates whether to get out of the EV business in the US.

GM's on it.

"Tax credits are an important customer benefit that can help accelerate the acceptance of electric vehicles," says Laura Toole, a GM spokeswoman. "Because General Motors believes in an all-electric future, we will work with Congress to explore ways to maintain this incentive".

https://www.consumerreports.org/hybrids-evs/gop-proposes-ending-hybrid-and-electric-car-tax-credit/

GM is debating what?

Although it’s unclear whether the provision will survive the tough negotiations in Congress,.....

Talking people out of their hysteria is probably a fruitless endeavor, but it's only a house bill. The common wisdom is that the senate is where house bills go to die (repeal and replace?). Try not to get your undies in a bundle just yet.

A good portion of the folks buying EVs would buy them with or without the tax credit. Six figures for a model X isn't shaved all that much by a $7.5K tax incentive for example. I'm okay with paying full price for my next one, though it won't be that expensive.

Besides that GM and Tesla were running out of time on the tax credit anyway and they still plan to make more new models. And some folks still get state incentives.

 

[Upper5Percent]

Congress is planning to eliminate the credit after the 2017 tax year. So if you were on the fence about getting a new Volt or Bolt EV, you may want to act before the year ends to lock in the tax credit.

On the other hand, if EV sales plummet as a result of this action, there may also be some fire-sales as dealers try to dump inventory and GM debates whether to get out of the EV business in the US.

Meanwhile, China is pleased at our short-sighted politicians. They have a plan to dominate EV tech and we are going to help them by enabling the US market to backslide into 1950 thinking.

Be sure they don't decide to roll the cutback INTO the current 2017 tax year......they have done this sort of retro tax deals before...Section 179 has had its deduction amount jumped at the very end of the year more than once to stimulate year end sales of structures and large ticket equipment

 

[llninja]

I wouldn't be driving a Volt were it not for the $7500 tax credit or $3914 state rebate. Like Mister Dave, the elimination of the tax credit won't affect me much. Either someone releases an electrified CUV or SUV that pulls me away from an Outback or Suburban, or I buy an ICEr because the EVs are getting released at a glacial pace.

To combat the China thing, Congress should instead send some congressional plus-ups to key companies out there in order to boost battery technologies. You'd be shocked at all the pork barrel politics behind those congressional plus-ups. My previous employer two companies ago received $25M to further the military technology we were developing. Dig deep into the congressional records and you will find bills passed with line items that have absolutely nothing to do with the title of the bill. The money the US Government is missing out from EV tax credits is nothing compared to this spending. Previous presidents have fought for line item veto power, they're never going to get it.

 

[bjrosen]

In the long run this is good for GM, Tesla and Nissan. If the current credit remains in place they would all be at a severe disadvantage vs the Johnny come latelys because their credits will run out next years and the new comers would still have most of theirs.

In the short run it means that dealer inventories will be drained by the end of the year because anyone who was on the fence about an EV will be forced to buy now vs waiting until next year. Sales in the first part of next year will dry up because the demand will all have been pulled into this year. By the middle of next year things should start to return to normal. The 400K people on the Model 3 waiting list had no expectation that they would receive a subsidy, even if Tesla had never sold a car before the Model 3 half of the reservation holders wouldn't have been eligible, but given that Tesla was already close to the 200K number without the Model 3 at best no more than 10% of the reservation holders would have received the subsidy. But in spite of that they signed up.

A fully loaded Bolt or Volt is $40K which isn't particularly expensive, it's not a Cruze but it's also not a Mercedes. The adjustment that GM is going to have to make is to improve the interiors so that the cars feel more like $40K cars. How expensive would it be to add power seats and a sunroof? The fact of the matter is that the Federal subsidy has done it's job, it's now possible to produce a 200 mile BEV for $40K. When the subsidy was put in place a 200 Mile BEV for that price was completely impossible. It was time for the subsidies to go, leaving them in place just punishes the companies who did all the work to make EVs practical.

 

[Mister Dave]

Be sure they don't decide to roll the cutback INTO the current 2017 tax year......they have done this sort of retro tax deals before...Section 179 has had its deduction amount jumped at the very end of the year more than once to stimulate year end sales of structures and large ticket equipment

"Not going to be retroactive" says Gary.

In the long run this is good for GM, Tesla and Nissan.

I agree. Just desserts for the laggards too.

 

[sosmerc]

My "dream Volt" would have power seats, a sunroof, and AWD....or at least a glass roof to let some light in ........

 

[eatsleafsandshoots]

The absoo-****ing-lutely last thing we need is 'just desserts' for any car company trying to electrify.

 

[Mister Dave]

Apparently some have missed the "It's not fair that GM and Tesla will lose the tax incentive while others take advantage" discussions.

You snooze you lose sounds fair enough with that in mind.

 

[hploeg]

I agree. Just desserts for the laggards too.

That would be "Just deserts".
No sweet rewards for laggards.

 

[bro1999]

They could have at least written a modified version of the credit that stated it would phase out for ALL manufacturers once the 1st manufacturer hit 200k plug-ins sold. But this debacle tax proposal was so rushed, they couldn't be bothered to even do that. I think there would have actually been some support for a version that cut off the tax credit for all after the first couple of manufacturers hit the 200k barrier.

But this is the GOP we are talking about.

 

[firehawk72]

Well, too bad I already purchased a Volt this year...

Purchasing another one (or a Bolt or anything else in the EREV) is totally out of the question for this country boy

 

[sosmerc]

It will be interesting to see if EV sales increase as a result of buyers thinking the Federal tax "break" is going away starting in tax year 2018.
I hope folks know that it's only a "break" if you have a tax bill of $7500 or more. I don't usually have a tax bill that high, but I am withdrawing IRA funds that I would normally have to pay tax on. I will withdraw just enough to generate a $7500 tax bill. I will invest the money or spend it on things we need for the house.

 

[sosmerc]

I should add that if my wife were willing to give up her Miata I would buy a Bolt to compliment our Volt!! (but she is not buying it)

 

[jsmay311]

They could have at least written a modified version of the credit that stated it would phase out for ALL manufacturers once the 1st manufacturer hit 200k plug-ins sold. But this debacle tax proposal was so rushed, they couldn't be bothered to even do that. I think there would have actually been some support for a version that cut off the tax credit for all after the first couple of manufacturers hit the 200k barrier.

That would be a reasonable compromise that would still...

• increase revenues to help offset some of the GOP tax cuts (which is their main reason for repealing it),
• would help the main American EV makers (GM and Tesla) relative to their (mostly) foreign competitors by not putting them in a position of being at a $7500 disadvantage as will soon happen under current law,
• and wouldn't screw up the EV market nearly as badly as an abrupt repeal.

But this is the GOP we are talking about.

Exactly.

 

[viking79]

I might pull up a purchase of a Pacifica Hybrid. I imagine Chevy will sell every Bolt EV they can produce this year. I expect 3500 to 4000 Bolt EV sales this month, and probably 4000 or 4500 in Dec

 

[llninja]

It will be interesting to see if EV sales increase as a result of buyers thinking the Federal tax "break" is going away starting in tax year 2018.
I hope folks know that it's only a "break" if you have a tax bill of $7500 or more. I don't usually have a tax bill that high, but I am withdrawing IRA funds that I would normally have to pay tax on. I will withdraw just enough to generate a $7500 tax bill. I will invest the money or spend it on things we need for the house.

When I retire, I plan on my withdrawals far exceeding a $7500 tax burden. I wish they had Roth 401Ks much earlier to that money could be tax free.

 

[Off Oil]

They could have at least written a modified version of the credit that stated it would phase out for ALL manufacturers once the 1st manufacturer hit 200k plug-ins sold.

It's close to this number already, and would likely be reached mid next year, so there's no need to complicate things to drag it out a few more months. With the Bolt and Model 3 the affordable & practical EV is now a reality. The tax credit did it's job.

 

[Upper5Percent]

"Not going to be retroactive" says Gary.

And a Congressman NEVER lies or manipulates the truth...

The talking points circulated by the Republican Party to sell its new tax bill refer to taxpayers earning $450,000 a year as “low- and middle-income.” It is an early sign of the deception the party is willing to undertake to pass the unpopular legislation.

The document (https://twitter.com/scottwongDC/status/926080665518592000) put out by House Republicans, which was handed out in a closed-door meeting, claims that the bill would lower the tax rate “for low – and middle-income Americans” from 39.6 percent to 35 percent so “people can keep more of the money they earn.”

But as New York Times columnist and Nobel laureate Paul Krugman quickly highlighted, for the purposes of the GOP, “That rate starts at income ~$450K”
In reality, the median household income in the United States is $59,039 — nearly $391,000 less than what Republicans are describing as “low- and middle-income.”

In reality, the median household income in the United States is $59,039 — nearly $391,000 less than what Republicans are describing as “low- and middle-income.”

https://shareblue.com/gop-talking-points-on-tax-bill-say-450k-is-low-and-middle-income/

GOP - $450,000 a year as “low- and middle-income.”

Reality - the median household income in the United States is $59,039

 

[JD4JC]

I might pull up a purchase of a Pacifica Hybrid. I imagine Chevy will sell every Bolt EV they can produce this year. I expect 3500 to 4000 Bolt EV sales this month, and probably 4000 or 4500 in Dec

Dang. I was hoping that the local dealer would have a Pacifica Hybrid or two around for me to buy with this year's credit. It l doesn't look like they will get any until after year's end. I may have to settle for the $22k in state and federal tax credits that lured me into buying our two Volts!