EV Tax credit for vehicles purchased in 2022
- Thread starter jimmm18
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Some people believed Biden's Build Back Better bill would become law. That would have changed the rules so an EV with a small battery like the SE wouldn't qualify for the full $7,500 tax credit. It appears Joe Manchin is battling for people buying a MINI Cooper SE in 2022 because if Biden's Build Back Better bill doesn't pass, the $7,500 tax credit for small-battery EVs will survive.
Puppethead
Well-Known Member
The BBB bill, if it ever passes, currently includes significant EV credit changes that would be retroactive to January 1, 2022. Nothing is for sure until something is signed into law, however. $7500 is a sure thing for 2021 purchases, any SE purchased in 2022 has a chance to be much less. And since the current credit is given at tax time, a 2022 purchase has to wait a year to get it. If the BBB bill passes as-is, the credit comes at time of purchase.
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wessy
Active Member
My understanding is that even if BBB as it’s currently written (with EV credits retroactive to January 1, 2022) is signed into law at some point next year, anyone who buys an EV that qualifies for the tax incentives that are currently in place (as the SE does for the full $7,500 tax incentive) will be able to take advantage of those existing tax incentives whether their purchase takes place during the remainder of 2021 or the portion of 2022 before BBB becomes law.
At least that’s how I, my MINI Motoring Advisor, and her regional rep interpreted the available info in late November (at which time I was still awaiting delivery of my new SE) before BBB went off the rails (for the time being, at least) on December 19.
At least that’s how I, my MINI Motoring Advisor, and her regional rep interpreted the available info in late November (at which time I was still awaiting delivery of my new SE) before BBB went off the rails (for the time being, at least) on December 19.
dude owns shares in a coal company. Why did any of us think he’d have the integrity to vote for BBB, despite how much the rest of the bill would especially help people in his state.
I apologize for getting into politics in this forum. My goal was just to suggest with a touch of humor that the BBB bill was a long way from passing. I don't want to offend anyone whose champion is Joe Manchin.
I haven’t seen this anywhere. Do you know if that’s in the legislative text? Everything I’ve seen just says the new rebates are for purchases on or after Jan 1, 2022.
That said, they planned to pass this law in 2021. Even if the current text says the new tax law would back date to Jan 1, 2022, it’s possible they’d now change it to allow for people who purchased in 2022 but before the bill was passed to choose whichever one is better for them. That could get tricky though, and tax laws are simpler if they just apply them to the full year. This uncertainty is why folks are concerned.
Knowing Joe Manchin, he’ll probably just string the other Democrats along for another 3-4 months before ultimately voting no on anything that would hurt his coal business (meaning BBB). So I wouldn’t be too concerned anyway.
I suppose I should apologize too. I figured most people on an EV forum would also be angry with Manchin, but I sometimes forget EV enthusiasts come in all shapes and forms. I shouldn’t be bringing up politics either. My bad y’all.
wessy
Active Member
No, I don’t know if the BBB bill specifies this, nor have I seen this confirmed anywhere. But that’s what makes the most sense to me and some others who have thought about it, because the EV tax incentives that are currently in place have only a start date — January 1, 2010 — and no end date. (They only begin to decrease, before eventually phasing out entirely, after a manufacturer has sold more than 200,000 EVs — but they have no set expiration date.)
The argument against this goes, “But by making the new EV tax credits retroactive to January 1, 2022, BBB effectively imposes an expiration date of January 1, 2022 on the EV tax incentives that first went into effect on January 1, 2010.” And yes, that’s exactly right!
BUT…if January comes and BBB hasn’t yet become law, the original EV tax incentives (including $7,500 for SEs) must continue on — because there’s no law currently in place that terminates them for any reason other than the manufacturer selling too many EVs to continue to qualify for them.
So if you buy an SE in January, and BBB isn’t signed into law until February, you should qualify for the EV tax incentive that was in place at the time you purchased your car — which would be the one that went into effect on January 1, 2010 and has no set expiration date.
And yes, I would VERY MUCH like to see this in writing specifically in regard to BBB — but, absent that, we do have it in writing in the existing law.
Urbanengineer
Active Member
bbb will not pass per the White House page, and even if it did, the mini would still be $7500 rebate if you made enough during the tax year. It just wouldn’t be $7500 back at point of sale like it should 
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I was amazed that you went to the White House page and the information there was that they had given up on Biden's Build Back Better bill. I had to see this for myself, so I surfed to the White House's BBB page. What I saw was how wonderful the BBB is going to be for everybody and how it's fully paid for. Were you perhaps reading the Mar-a-Lago White House page?bbb will not pass per the White House page, and even if it did, the mini would still be $7500 rebate if you made enough during the tax year. It just wouldn’t be $7500 back at point of sale like it should
Also, one way to pump up one's tax bill to $7,500 even if you didn't make enough during the tax year is to convert regular IRA funds to Roth IRAs (if you have enough in regular IRA funds, that is). That's what we did to qualify for the tax credit on our last 2 EVs.
Alf_W
Active Member
It would be highly surprising if the administration gave up on the BBB at this time; they are highly invested in getting it passed in some form.
With the refusal of Manchin to support the existing bill, the big question is what will happen next to adjust the bill to get Manchin's support, or alternatively to get a Republican senator's support to counter Manchin's rejection---which doesn't seem likely.
Based on the current wording in the House-backed bill, the fed tax credit for the SE will be $4000 (for those with an adjusted gross income <$250K) and be retroactive to the entire tax year starting Jan 1 2022. It is unknown is what form the final bill will be, or if it will even be passed. At this point that is unknowable...all we can do is lobby our senators for a desired outcome.
With the refusal of Manchin to support the existing bill, the big question is what will happen next to adjust the bill to get Manchin's support, or alternatively to get a Republican senator's support to counter Manchin's rejection---which doesn't seem likely.
Based on the current wording in the House-backed bill, the fed tax credit for the SE will be $4000 (for those with an adjusted gross income <$250K) and be retroactive to the entire tax year starting Jan 1 2022. It is unknown is what form the final bill will be, or if it will even be passed. At this point that is unknowable...all we can do is lobby our senators for a desired outcome.
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Urbanengineer
Active Member
Exactly. It’s not going to pass in its current form that most of us were reading the past couple months. It will be massively changed before it gets signed over.
you can be facetious but if you read the current bill - it’s not being passed as is. That is not wrong. We can hope SOMETHING comes up in the future.
Back door Roth FTW, whether trying to get that max credit or save more money $$$ for retirement!
you can be facetious but if you read the current bill - it’s not being passed as is. That is not wrong. We can hope SOMETHING comes up in the future.
Back door Roth FTW, whether trying to get that max credit or save more money $$$ for retirement!