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I would rather they kill it for all companies after the first company hits 200k.

It isn't possible to keep that going much longer, EVs need to stand on their own soon. Say have something until 2020 or something. It already kills resale value which will scare some people away.
 

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The existing system is bad for EV adoption, as it creates a disincentive for manufactures to be early adopters. There should be a single hard limit where the tax credit is phased out when the total EV sales in the US hit the number, not by manufacturer. This is the way the credit was originally designed before the last administration changed it.
 

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I would much rather see it replaced with a progressive (rather than regressive) credit that benefits lower income buyers. The fact that you have to make a minimum of $50,000 a year just to take advantage of the credit is ridiculous.
 

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I would much rather see it replaced with a progressive (rather than regressive) credit that benefits lower income buyers. The fact that you have to make a minimum of $50,000 a year just to take advantage of the credit is ridiculous.
So what your suggesting is those that can't afford a 40K car, should be given the discount ... sound like another give away for lifeline phone users ... no thanks
 

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I would much rather see it replaced with a progressive (rather than regressive) credit that benefits lower income buyers. The fact that you have to make a minimum of $50,000 a year just to take advantage of the credit is ridiculous.
Anyone can reduce their taxes owed by up to the full $7,500 amount provided they owe that amount in tax liability. To refund in excess of this would be welfare (like the earned income credit). I personally disagree with both; those who really need it should apply through the welfare system.
 

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I don't see what the objection is. The 7,500 is MY money. It's just redirected from the US Treasury to an auto manufacturer. It's not like I can get it back for any other use. It's not even a 7,500 discount. You've "pre-saved" 7,500 in cash through your taxes--no different than if you saved it in your bank account.
 

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So what your suggesting is those that can't afford a 40K car, should be given the discount ... sound like another give away for lifeline phone users ... no thanks
Anyone can reduce their taxes owed by up to the full $7,500 amount provided they owe that amount in tax liability. To refund in excess of this would be welfare (like the earned income credit). I personally disagree with both; those who really need it should apply through the welfare system.
I wish people felt the same way about subsidizing the fossil-fuel industry.
 

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I wish people felt the same way about subsidizing the fossil-fuel industry.
As do I. The fossil fuel industry is mature to put it mildly, and requires no taxpayer subsidy. I would much rather see these funds used to reduce the national debt or incentives for renewables.
 

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As do I. The fossil fuel industry is mature to put it mildly, and requires no taxpayer subsidy. I would much rather see these funds used to reduce the national debt or incentives for renewables.
I actually feel in needs to go further because of the accumulated damage and costs that the fossil-fuel industry has inflicted on society. When I say a progressive rebate that even lower income buyers can access, I am wanting it to be paid for with a carbon tax.
 

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I seriously doubt the current administration would extend the program. Just let it die as designed.
 

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The existing system is bad for EV adoption, as it creates a disincentive for manufactures to be early adopters. There should be a single hard limit where the tax credit is phased out when the total EV sales in the US hit the number, not by manufacturer. This is the way the credit was originally designed before the last administration changed it.
People think about this all wrong. After 200K in sales bump it to 10K per car, and cap the number of manufacturers who can take advantage of it (4 or 5 tops?). Chevy would work harder to sell EVS/Volts/whatever.
 

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Support for electric vehicles will be gone under the Trump Administration. The United States needs a system of penalties against citizens who do not vote. The archaic Electoral Collage should be abolished. Drop the subsidies for electric vehicle systems and increase carbon taxes on gas-guzzlers to shift demand to more efficient vehicles of all kinds.
 

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People think about this all wrong. After 200K in sales bump it to 10K per car, and cap the number of manufacturers who can take advantage of it (4 or 5 tops?). Chevy would work harder to sell EVS/Volts/whatever.
I'm liking this idea, give an incentive to hit 200k fast. MIster Dave for President!!!
 

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Most EVs sold in the US are manufactured here, correct? The $7500 tax credit helps sales and leads to more good-paying US jobs. It is a small cost for a big return. This is a good thing.

Which of course means that the Trump administration will do everything they can to kill it off, unless Elon Musk really has his ear.
 

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Most EVs sold in the US are manufactured here, correct? The $7500 tax credit helps sales and leads to more good-paying US jobs. It is a small cost for a big return. This is a good thing.

Which of course means that the Trump administration will do everything they can to kill it off, unless Elon Musk really has his ear.
Except the number of EVs sold is tiny compared to the number of ICE vehicles. It doesn't necessarily mean new jobs, just the same worker shifts from prevoisly working on an ICE line to an ev line.
 

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The chances that the EV tax credit will survive in the next tax bill are slim. The talk is about eliminating almost all deductions including State & Local taxes and mortgage interest and replacing them with lower rates. If they do that then there is no way the EV tax credit survives. As a matter of principle it shouldn't be extended anyway. It was created to help jump start the EV industry and it's done that. The cost of EVs has dropped to the price of an SUV or a near luxury car (i.e. a fully loaded Bolt is $42K) and the trajectory of battery prices is such that the prices will continue to drop in the coming years. EVs are now at the stage where ordinary market forces can drive their development and that's a good thing. From GM's point of view having the EV credit go away in 2018 (assuming we get a new tax bill this year) would be a good thing. GM will be hitting the 200K ceiling next year which means that their credits will have phased out by 2019 just when the Axis powers EVs are becoming available in numbers.
 

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The existing system is bad for EV adoption, as it creates a disincentive for manufactures to be early adopters.
Yeah, sort of. I can admit that the Tax Credit played a pivotal part in my decision purchase of a chock full o' risk, unproven, bleeding edge vehicle. But then I made $4K back in avoided fuel cost in only 2 years! Gas was over $3/gal the whole time then and I find saving money sexy.

But EVs aren't an unknown quantity anymore (Thanks Bush/Obama Tax Credits). Most people succumb to TLDR and think that selling more early puts you at an immediate $7500 disadvantage to the follower. However it tapers off over a whole year. GM's following 2 quarters of sales will still get $3750 tax credit, and then 2 more quarters gets $1,875. This anticipates a reverse Highlander-esque "quickening" (There must be one to begin?) whereby the market will turn towards rising demand and supply will magically appear as it does in a market with competition. The Tax Credit worked to incent wide/r production.

If Subaru purposely waits 2 years to supply 0.12% of all US EVs based solely on a temporarily cheaper product... I'm OK with their decision. The serious players will all be engaged about the same time frame and competing with each other, not with future and lesser offerings. It's all temporary. On the other hand, if the little guy needs the extra time to get a really good product to market then the tax credit system allows them that time without punishing them for being small and late. If it isn't a good product, market rules still apply.

Features, value and availability will therefore IMHO have a much larger part of the decision in the market going forward, as it should. GM has had it's special chance to bring people to their brand.

Separately the current administration doesn't care about climate change, so they won't see a reason to keep up the pressure to accelerate adoption domestically. Luckily for consumers cars are a global market and the US will eventually benefit from the innovation they are ceding to other markets. Changing the Tax Credit in the next 4 years won't change that cycle, right?
 

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The tax credit will soon give an edge to the automakers that sat around and let Tesla, GM, Nissan (and Ford) do all the heavy lifting, and soon will be at the point where it gives a lot of foreign automakers an edge over US automakers.

Trump's "America first" platform should not let this happen...
 

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Unfortunately the program was designed around a model which predicted battery costs to drop faster than they have. Bummer. I'd like to see it fixed at a number for all companies. Let the pioneers reap the benefits. Wouldn't be less costly as well.
 
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