Will the IRS $7,500 tax credit be around in 2022?

I don't believe the law is solidified yet, so anything can happen. But, I would guess that at least the $7,500 will remain. I don't believe Mini has reached the 200K unit cut off to cause it to drop off the rebate list. And for American made and union made vehicles, the credit might go up to $12,500. (but not for Mini!)

https://www.cnet.com/roadshow/news/ev-tax-credit-increase-biden-agenda-build-back-better/

 

It would take a very powerful psychic to predict what's going to happen in Washington these days. If you haven't seen it, another thread about the $7,500 tax credit was started last month.

 

All signs point to it still in the bill. But until the votes are counted, anything can happen.

Program changes:

• Remove the 200,000 vehicles per manufacturer cap
• Keep the $7,500 incentive for new electric cars for 5 years
• Make the $7,500 incentive a point-of-sale discount instead of tax credit
  • EVs with battery pack smaller than 40 kWh are limited to a $4,000 incentive
• Add an additional $4,500 for EV assembled at union factories
• Add another $500 for EVs using battery packs with 50% of components (including cells) are made in the US
• After the first 5 years, the $7,500 becomes only for US-made electric vehicles and it applies for another 5 years.
• They introduce price limits on the EVs eligible for the incentives:
  • Sedans under $55,000
  • SUVs under $69,000
  • Pickup trucks under $74,000
  • Vans under $54,000
• They are also introducing caps on income to get access to the incentives, but they are fairly high at an adjusted gross income of up to $400,000 for individuals and up to $800,000 for joint filers.

It's not clear how that affects the SE, built in Oxford. I doubt the union bonus will apply even if unionized, and the battery packs sure aren't US-made. I guess the SE could be screwed for having a battery pack under 40 kWh even though it's a pure BEV, limiting the rebate to $4000.

 

Here is the link to the IRS website

https://www.irs.gov/businesses/irc-30d-new-qualified-plug-in-electric-drive-motor-vehicle-credit

 

This is for the new bill that's supposed to happen in 2022. Looks like its more likely to pass now because if Manchin and Sinema weren't on board, Biden wouldn't have released the new outlines. But anything can happen.

https://rules.house.gov/sites/democrats.rules.house.gov/files/BILLS-117HR5376RH-RCP117-17.pdf

This is the updated text. Page 1241 shows the EV's with smaller battery packs. Not sure if this includes PHEV's because it says they lose out on 3500 dollars if the battery is under 40 kWh and has a fuel capacity over 2.5 gallons.

Sucks that we're losing out on 3500 dollars because of a smaller battery. I wonder if the new generation mini's are going to have bigger batteries.

 

If the US sets a $3,500 break-point at 40 kWh, then 40 kWh will become the smallest battery any company puts into a BEV. If MINI stretches the Oxford-built SE a few more years, expect the boot to grow an 8 kWh lump.

 

I am glad my Mini should be here in the next three weeks.

 

My delivery is on the fence between 2021/2022. I'm willing to wait all year (2022) for my $7500 tax credit because I'm excited about the car but if this thing passes I won't be going through with my order if it means losing out on $3500. In the current climate it is an attractive price point at ~$32,000 minus $7500 but if the deal gets worse I'll just spend the extra ~10K on a Model 3.

 

Everything I read seems like they're bringing a EV version for the countryman and moving production of the mini 3 door to china with Great wall motors for 2023. My '22 delivery is supposed to be around February. I do wish there were more options around the 30k range. Thought about changing to the leaf and the bolt to utilize the full credit but man they are ugly.

For OP, I just ordered my SE with a delivery around February and paid the 250 deposit which is refundable. The tax credit is looking like its only going to be 4k. But if they announce a '23 mini cooper(before car is ready for delivery, last year they announced the new minis in January for 2022) with a bigger battery and still maintains that mini look and feel, you have the option to cancel and just wait for the '23 as well.

 

2024 Countryman spy photos, it's horrifying looking to me. I have a hard enough time waving to existing Countrymans I see.

The part that's interesting is this, "The MINI Countryman will be based on the evolved version of the FAAR platform...designed to accommodate ICE, PHEV, and BEV powertrains." So it sounds like MINI's going to stick with a multi-purpose platform to hedge their bets for the next few years, which isn't necessarily a bad thing.

 

I just bought a mini SE in NorCal and canceled my order that I placed in September. It is going to a dealer in LA. The order already entered production and will probably end up at the dealer before the end of the year. I bet if you call you might be able to get it (if you really want one by years end).

 

Could you PM me with the name (and any other details you may have) of the LA dealership? My adult son lives in SoCal and is interested in an SE.

 

Out of Spec Motoring posted a new video yesterday about the new Leaf. Apparently they have dropped the price with the base version now about $27k. But I agree it is unattractive and unfun.

Rob

 

I tried reading through the EV section of the bill, but wow is it obfuscated writing. It's not entirely clear to me if the 40 kWh limit only applies to hybrids or not, since there's associated language about fuel tank capacity.

 

I suggest buying a new SE this year. Hard to say what will happen to the tax credit, but chances are it may be smaller next year.

There are currently 45 new SE’s listed for sale on CARS dot com. There is even a 2020 listed, if you prefer the old style front end. Good luck!


Sent from my iPhone using Inside EVs

 

Wow, the used 2020/2021 models are selling for full price or more, over $36,000.

 

Where is that? Do you have actual transactions, etc.?

Thanks!