EV Tax credit and Tax Software.

The $80K vs $55K disparity further incentivizes manufacturers to make SUVs and stop making sedans.

 

I don't understand how the point-of-sale rebate will co-exist with the income caps for the rebate. Do we have to somehow show our income to the dealer to get it? Or is the POS rebate independent of the income cap (which makes more sense to me.)

 

Or simply inflate their price even more for something that is essentially the same raw and labor cost to produce. Nobody will ever convince me that it will cost GM 50% more to produce the Blazer EV than it does to make the Equinox EV.

 

If they implement it like they did up here, you’ll head to a government website and register for the program, and they already know all about you. Your dealer will then log into that site and complete the process upon delivery.

 

The only thing that changes is for cash purchases and financing. For leases, manufacturers (leasing company actually) would already pocket the tax credit. Makes it extra profitable for the dealer to eliminate a lease buyout option and pocket the used car rebate!

If you want a point of sale rebate, you're probably going to have to disclose your SSN and prior year tax returns to the dealer.

 

However, it's the current year's tax return that counts, not the prior year's. I don't make enough to owe $7,500 in taxes when I buy my EVs, so in those years I transfer enough traditional IRA money to my Roth IRA to bump my taxes up to $7,500.

If it's not a rebate, then do people who don't owe $7,500 at the end of the year have to pay back all or some of the EV tax credit they received at the time of sale? Even if that's true, at least you're getting a no-interest loan on the part of the MSRP you have to repay. Very confusing to me.

 

Hmm. What could POSSIBLY go wrong? /s

 

Ugh... k I'm going to have to do way more reading into this to figure out what the best route is.

 

I wouldn't waste the time or effort until it passes the Senate.

 

But also, even it does pass, if you ordered in 2022, then the current federal tax credit applies regardless.

 

In 2022, and before it crosses the President’s desk.

 

Ah yes, my bad - I blame Friday afternoon!

 

Yes presently the tax credit would work because it factors in all of the current year income. However, if you do a point of sale rebate (reduction off the sticker price or MSRP) someone would have to initially confirm using prior year tax information (i.e when taking delivery in January/February) AND then IRS would have to come back and audit at the end of the year.

 

Messy.

 

The written sales order provision is important, because cars ordered as early as May could very easily be pushed into 2023, given the horror stories that have been posted about delays. Thanks for that.

 

No income tax in Texas either but they were offering a check for $2,500 if you bought an EV. That said, Tesla’s were not eligible and there was a cap of about 2,000 vehicles. They opened applications at the end of last year and only closed the applications a month or so ago so despite my concerns late last year of being too late to apply it seems not many non Tesla EVs are sold here…

 

To an extent, yes, as services cost a certain amount to provide so they have to gather it from somewhere.
However… the trick to places like Texas is not to live the high life as that’s where they tax you. You are literally taxed on your lifestyle vs income.

I’ve lived in 3 States, currently in Texas after moving from Queens NYC.
New York City has a rough sales tax rate of about 8%, Here it’s about 8.25%.so that’s an extra $250 for every &10,000 we spend. Not much difference.
Property taxes are the key differentiator with a much higher rate here than New York.
But… property costs a lot less.
Our $650,000 1 bed 950sqft apartment in Queen’s was $5,600 per year in property taxes, but a $650,000 property here in Plano would be $12,285 per year. Huge difference. But… that would give you a 4 or even 5 bed property four times the size of that apartment! We opted for a 3 bed 2,000sqft home worth $350k and taxes on that are only $6,600 so only $1,000 more than New York and we still have double the square footage.

So we spend $1,000 a year more in property taxes, $250 more per $10,000 we spend, but saved $12,000 in state and local income taxes. Even if we got the big Texas house we’d be thousands better off.
The math may not be as sweet comparing other flyover states but places like NYC…

 

I’ve lived in four states including Texas. Currently in California. When I look at how much it costs to live somewhere, I take into account utilities, property taxes, income tax, and insurance. I’ve found that there’s not much difference amongst the states I’ve lived in. Yes, California is higher, but it’s not as outrageous as people make it out to be. And the quality of life is better here than any place I’ve ever lived. I remember moving from WI to TX thinking I was going to save so much money with zero state income tax. At the end of the first year, I realized the money that went out was about the same, just went into different pockets that weren’t mine.