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JasonSpangler asked this question in the tax credit thread and since that thread seems to have gone completely off track, I thought this was a good question that wasn't answered and deserved its own thread. Does anyone know what happens? Is it number 199,999 gets $7500 while the next one gets nothing? Or is gradual? I'm looking at buying a new Volt in early 2019 but if the rebate is completely gone I am also going to look at the Mitsubishi Outlander plug in.

Anyone know how the EV tax credit phaseout will work, in detail? I'm considering a 2018 or 2019 Bolt, but if GM hits the 200,000 sales mark sometime this year I'm not sure how much of the credit I'd get (and if it depends on the date I purchase vs the date the 200,000 sales mark is reached).
 

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Found this quote:

Each independent automaker’s eligible plug-in vehicles receive a federal credit (up to $7,500) federal credit – until the 200,000th plug-in is registered inside the US, when a countdown for phaseout of the credit begins.

At the time of the 200,000th sales, and so as not to disrupt/confuse those buying the EVs, that full $7,500 credit continues through the end of the current quarter and to the completion of the next quarter. After this period ends the “phase-out” begins, meaning the credit is reduced to $3,750 for the next 6 months, then to $1,875 for the next 6 months before expiring completely.

During any part of the phase-out process (between sale #200,000 and the calendar expiry date), the OEM is free to BUILD AND SELL AS MANY EVS as they can/want, receiving the applicable incentive amount.

Source:

https://insideevs.com/us-federal-7500-ev-credit-expiry-date-by-automaker-estimates/

Mike
 

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Found this quote:

Each independent automaker’s eligible plug-in vehicles receive a federal credit (up to $7,500) federal credit – until the 200,000th plug-in is registered inside the US, when a countdown for phaseout of the credit begins.

At the time of the 200,000th sales, and so as not to disrupt/confuse those buying the EVs, that full $7,500 credit continues through the end of the current quarter and to the completion of the next quarter. After this period ends the “phase-out” begins, meaning the credit is reduced to $3,750 for the next 6 months, then to $1,875 for the next 6 months before expiring completely.

During any part of the phase-out process (between sale #200,000 and the calendar expiry date), the OEM is free to BUILD AND SELL AS MANY EVS as they can/want, receiving the applicable incentive amount.

Source:

https://insideevs.com/us-federal-7500-ev-credit-expiry-date-by-automaker-estimates/

Mike
Some on the Tesla forums think EM and Tesla will use this phase out plan to maximize the delivers of the M3 as Tesla approaches the 200K mark.
 

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...I'm looking at buying a new Volt in early 2019 but if the rebate is completely gone I am also going to look at the Mitsubishi Outlander plug in.
What...? Mitsu overall is such a quality gamble, I can't even believe it would be on anyone's radar... Surely you jest (or have never owned one)...
 

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JasonSpangler asked this question in the tax credit thread and since that thread seems to have gone completely off track, I thought this was a good question that wasn't answered and deserved its own thread. Does anyone know what happens? Is it number 199,999 gets $7500 while the next one gets nothing? Or is gradual? I'm looking at buying a new Volt in early 2019 but if the rebate is completely gone I am also going to look at the Mitsubishi Outlander plug in.

Anyone know how the EV tax credit phaseout will work, in detail? I'm considering a 2018 or 2019 Bolt, but if GM hits the 200,000 sales mark sometime this year I'm not sure how much of the credit I'd get (and if it depends on the date I purchase vs the date the 200,000 sales mark is reached).
I've heard GM will reach 200,000 sales sometime next year (same with Tesla and Nissan). Given the gradual decline in tax credits, you may not receive the full $7500 in 2019. Don't have my sources with me but I believe insideEVs covered it a few months ago.
 

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I've heard GM will reach 200,000 sales sometime next year (same with Tesla and Nissan). Given the gradual decline in tax credits, you may not receive the full $7500 in 2019. Don't have my sources with me but I believe insideEVs covered it a few months ago.
The Drive said:
As of October 2017, GM is leading with 158,257 sales and Tesla is following closely behind with 148,145 (an estimate based on geographic market, as this number is not disclosed by the manufacturer).
Estimates have GM and Tesla hitting 200,000 in Q3 of 2018. Tesla will have to disclose its actual sales numbers at some point or run into trouble with certain gubmint agencies.

That means the full credit should be available throughout 2018 for these two.
 

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Some on the Tesla forums think EM and Tesla will use this phase out plan to maximize the delivers of the M3 as Tesla approaches the 200K mark.
That makes sense to me. If I was Tesla I would stop selling cars just before reaching the 200,000 break point and take orders until I run out space to store them, then we'll them like crazy for the next two months with the full credit.

If GM is planning to sell a bunch of electric cars, SUVs and trucks they'll need to do it soon if they want to take advantage of the tax credit.
 

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That makes sense to me. If I was Tesla I would stop selling cars just before reaching the 200,000 break point and take orders until I run out space to store them, then we'll them like crazy for the next two months with the full credit.

If GM is planning to sell a bunch of electric cars, SUVs and trucks they'll need to do it soon if they want to take advantage of the tax credit.
It's not two months - it's between 3 and 6 months, depending on when in the quarter the 200k car happens. I don't think Tesla will go quite as far as you are describing, but I do expect them to adjust deliveries so they hit 200k at the start of a quarter - presumably either second or third quarter next year depending on how the 3 ramp goes.

If Congress was more of a functioning entity I would have expected them to change or kill the incentive after all three big players lose it in 2019, but I guess for the moment we should be happy it didn't die yesterday.
 

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Discussion Starter #10
Thanks everyone for the explanation. Since I want to maximize the new California HOV rules the best time to buy would be 1st quarter 2019, so hoping they don't hit 200,000 until Sept 1.

What...? Mitsu overall is such a quality gamble, I can't even believe it would be on anyone's radar... Surely you jest (or have never owned one)...
Hadn't looked into it too much since I am not buying for a year, but was searching to see if there was a plug in that had AWD and was a little bigger than my Volt, and found the Mitsubishi. I have had no issues with my 2014 Volt (knocking on wood) so would prefer to get another Volt, but if there was no rebate it would make it tougher to justify. Now that I know worse case is it will be $3750, which is still not as good as the Outlander at $5800, but doable and close enough for the extra benefit of reliability.
 

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Would be great for small EV corporations,or big car companies starting late in the electric game, they will be able to offer the $7500 discount, while GM , TESLA etc, will have to reduce prices to be competitive...will see.
 
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