Hi, We know the Federal tax credit expires after 200,000 eligible cars are produced. For example, the announced Tesla Model 3 projected numbers means late buyers won't get the credit. Yet the current USA Congress has announced their next tax code won't have this credit. In effect, killing the credit sooner than 200,000 cars. What I'm trying to formulate is an argument I could send to my right-wing, Alabama Congress-critters that might work. Yet knowing it will end, does it make sense to ask for a continuation? Thanks, Bob Wilson
We don't know for sure that the tax bill will pass, so it's too early to assume it will pass. I think when writing a Congress critter, it's probably best to frame your argument from a similar political perspective. In this case, domestic energy (foreign oil dependence) could be mentioned. Also, fostering technology that we need to compete in a global market where one country (China) is aggressively working at developing electric vehicle tech and marketshare. We should be encouraging our automakers to innovate, which this small program does. One could also mention that this was a Republican program originally.
The Senate version of the bill has restored the EV tax credit as I expected. (As well as a host of other credits that the house bill would have killed.) Of course, it also is harsher on the state and local tax credit deduction than the house bill is. Lots of house republicans are in states with high state income tax or property tax. So that will be a no-go for house members most likely. After all of this, either the bill will end up so dumbed down that it is toothless... or it will not pass. http://business.financialpost.com/pmn/business-pmn/the-latest-senate-bill-retains-mortgage-interest-deduction “Sen. John Hoeven also told reporters that the top tax rate for individuals, currently set at 39.6 per cent, would drop to 38.5 per cent under the draft Senate measure. The South Dakota Republican said the measure also preserves existing clean energy tax incentives such as for electricity production from wind. It preserves a tax credit for electric cars as well.”
The end result will be the house wants SALT to an extent, the Senate just wants some big mortgages and tinkering with the rate cutoffs.. they look at each other and say well **** what are we doing here anyways and go home.
