EV Tax credit and Tax Software.

When I found out through this forum that people from some other states were getting big state tax credits for their EV purchase, I thought, "Man, it sucks that I can't take advantage of those!" But then I realized the reason is I don't pay any state income tax at all in Florida, so there's nothing to give back. Works for me!

 

Oregon has a rebate rather than a tax credit so doesn't necessarily need to be linked to state taxes.

$2500 for everyone plus up to an additional $5000 for low income people. Someone could theoretically get an SE for $15k of they played the right tax games to be low income and have $7.5k tax liability!

 

In Minnesota I pay state income taxes, but there's no state EV incentive. All I got was the federal rebate, which was more than enough to make me happy. Well, the SE makes me happy. The federal rebate was a nice plus.

 

I’ve lived in 4 different states. In three of the four, I had to pay a state income tax. The fourth was Texas, one of the few states with no income tax. What I’ve found through the experience of living in these states is in the end I usually pay the same. It just might go in another bucket. Example: TX has no state income tax, but sales tax was very high and property taxes were extremely high. Georgia had an income tax, a fairly high sales tax, reasonable property taxes, but they also put sales tax on groceries. It’s the only state I’ve lived in where groceries are taxed. So in the end, my money going out was essentially the same and the government got their money; just through different buckets.

 

Given the poor air quality in much of Arizona where live, we've always been disappointed the state government seems almost hostile to anything that would reduce the pollution here.

 

Gonna get brain hurt trying to crunch those numbers so they work.

I dont mind filling out a form for 2500.

 

E-file really is blatantly corrupt.

The IRS fill-in PDFs work fine. Always free. All tax situations covered.

 

Form 8911 is dependent upon your alternative Minimum Tax, which computes capital gains, and investment earnings. In TurboTax look up your AMT to find out whether you exceed the maximums allowed.

 

I did get my refund finally on 4/20 after filing on 3/23. Got back a good chunk of the $7500 instead of owing about $2k as usual (I don't believe in giving the gov't an interest-free loan of my tax money each year, so plan to owe a bit).

Rob

 

The fed site is now updated with 2023 SE!

https://www.fueleconomy.gov/feg/taxevb.shtml


Sent from my iPhone using Inside EVs

 

TaxSlayer is coding the Form 8911 for TY 2022. This is used by AARP/Tax AIDE and is a free filing service.

 

Changes to $7500 coming for deliveries in 2023. This would all but eliminate the SE as well as future Mini EVs (and BMW).

• In order to get the full credit, the electric vehicle needs to be assembled in North America, the majority of battery components need to come from North America, and contain a certain percentage of minerals from countries with free trade agreements with the US.

Link:
https://electrek.co/2022/07/27/senate-moves-forward-ev-tax-credit-reform-tesla-tsla/

 

Stuff like this leaves me feeling incredibly lucky to have jumped on an SE when I did. I also lucked out big time buying my car this month, 2 days after EVs in Illinois became eligible for a 4k rebate. With the federal and state incentives, plus the sale of my old car at a premium right now, I'll end up paying less than 20k for the MINI, which is just nuts in my book.

 

So with the 27.5% import tariff on Chinese cars and the elimination of the $7,500 tax credit for cars not built in the US with US batteries, it appears MINI will have a tough time selling the 2024 MINI Cooper SE in the US.

 

“Beginning in 2025, any vehicle with battery minerals or components from a foreign entity of concern are excluded from the tax credit. (Page 374, line 20).”

sounds like it could still get credit if it’s one of the fair trade countries.

https://ustr.gov/trade-agreements/free-trade-agreements

Germany not on the list. Rough.

 

I still don't think that matters as assembly in North America seems like problem #1. The list of sedans assembled by foreign auto companies in America is quite short. Volvo S60 hybrid sedan is in South Carolina...and that might be it for foreign auto / state side assembly for EVs. SUVs is a different story, but sedans...not great outlook for this credit.

 

yikes! Glad I'm getting the car soon - mine's approaching San Diego right now... I think I'll get it before it becomes law.

 

Well, it doesn't matter how slow your ship is, due to this :
"Transition provision for EVs with written sales orders dated in 2022 prior to the date of President signing the bill but delivered in 2023 allows purchaser to claim the “old” credit in 2023."

 

The income and vehicle price caps are going to change things quite a bit (I guess the SE is in the "sedan" category, but where would the Aceman fit?):

• Zero-emission vans, SUVs, and trucks with MSRPs up to $80,000 qualify.
• Electric sedans priced up to $55,000 MSRP qualify.
• The full EV tax credit will be available to individuals reporting adjusted gross incomes of $150,000 or less, $300,000 for joint filers.

On the plus side, rebate at point of sale and no more # of vehicles sold cap. All assuming this actually passes, I'm skeptical it'll happen.