New bill to end the $7,500 fed tax credit and tax them more instead

Discussion in 'Clarity' started by Rick Reagan, Oct 10, 2018.

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  2. qtpie

    qtpie Active Member

    That’s sad. One step back for Americans.

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  3. RickSE

    RickSE Active Member

    that would be a hugely disappointing event, so I’m sure it will pass quickly. Perhaps a better alternative would be to increase the gasoline tax to discourage use and higher mileage vehicles (although the republicans are also trying to reduce average fleet mileage). I do think in fairness that EVs should have to pay something for maintenance of the highway system.
    DaleL and Kailani like this.
  4. 2020

    2020 Member

    Kind of sad. Some things you need a government push behind it, otherwise it is just to much of a risk for private companies to undertake. It is a "Chicken and Egg" battle with these companies regarding electric cars. Here in Georgia in addition to the federal tax credit, Georgia used to offer a $5000 state credit. You used to be able to lease a base model Leaf for about $200/month. If you factor in the gasoline savings, the net cost of ownership was probably less than $100/month. There were Leafs everywhere, hence the proliferation of charging stations that came with it. In Georgia it costs about 10x more for tag fees for electric cars. That I am o.k. with that since we should put in our fair share to up keep the roads. However we should not punish the car companies. Without the tax credits the cost of electric vehicles would be cost prohibitive for most people and thus the car companies would go on producing ever more SUVs. If our government takes away this credit then we relinquish our competitive advantage to China. They are mandating that by the next 5 or 10 yrs 20% of all cars sold should be electric. Hence by then there will be a lot of cool and inexpensive electric cars coming out of China.
    chris5168 likes this.
  5. PHEV Newbie

    PHEV Newbie Well-Known Member

    OK, that's what I thought. The Republicans had wanted to get rid of the tax credit when they slashed taxes on corporations and the wealthy. It just slipped in their haste. The Earth would go off its axis if Republicans ever did anything to help the environment.
    Louis Nisenbaum likes this.
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  7. jorgie393

    jorgie393 Active Member

    One of the great pleasures of this forum is that even when it addresses issues of EV policy, by and large it stays clear of politics. I hope it can stay that way.
    Mesa, Bas, Michael Borquez and 5 others like this.
  8. qtpie

    qtpie Active Member

    I wonder who is lobbying this bill? US car companies so that they can make more gas-guzzler SUVs; oil companies so that they make more profit on oil; Tesla since they are hitting 200,000 limit; or the Chinese... just because they don't like US.... j/k
  9. interestedinEV

    interestedinEV Well-Known Member

    or the ethanol producers who will lose their buyers if gas consumption goes down or the car dealers who see their service revenue drop or the dealers who are afraid Tesla will put them out of business if other manufacturers have their own showrooms or a politician who genuinely believes it is a giveaway to the fortunate or that incentives are against government policy or an investor who is betting against EVs and wants the sales to drop or............

    There are many "usual suspects", unfortunately, there is a campaign against EVs. The Lexus add is instructive in how conventional manufacturers are going about it. What will happen if the incentives are

    I actually believe that if the incentives are removed or phased out, it may actually force the EV industry to push innovation and bring down the costs considerably so they are competitive on their own. But it should be done in a thoughtful manner that spurs innovation not an emotional reaction to something (I hate Tesla, I love Tesla, Incentives are good, Incentives are bad.....). If everyone is told that incentives will expire in 2020 or 2021 or when you reach 200,000 cars, then there will be a rush to get some cars on the road. Once there is a critical mass, nothing can stop EV's. We need to get the critical mass.
    Clarity_Newbie likes this.
  10. bfd

    bfd Active Member

    Hard to avoid politics when it's a political hot potato. There is a group who is hell bent against any kind of subsidy or "entitlement" - well most subsidies anyway (wink, wink) - so a tax credit for EVs and PHEVs is anathema to their being. They'd get rid of it just because… However, there are others who recognize the incentive - both for manufacturers and for buyers - of the tax credit. Hopefully, those who think - rather than those allowing others to do their thinking and voting for them - will prevail.
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  12. interestedinEV

    interestedinEV Well-Known Member

    Administrators, I suggest this be merged with a thread on the same topic in the general forum.
  13. stacey burke

    stacey burke Active Member

    The congressman that sponsored this bill is from a gas drilling state, the elections are coming up and he need to show his constituents he is their guy. It will not pass the entire house as many hundred bills never even get out of committee. So don't worry about it. If you are worried write (email) your senators and congressperson.
    interestedinEV likes this.
  14. interestedinEV

    interestedinEV Well-Known Member

    True, however there is a nuisance value in all of these. If the special interests can get things like this going from many directions, the hope is that something will stick or at least gain them some concessions/leverage. This may fail as a stand alone bill but if it gets incorporated into a larger bill and then the congressman can declare victory. Then in negotiations, this particular issue is used as a pawn to sacrifice during the reconciliation. If someone else refuses to compromise, then this goes through. It is a game, but what is scary is that there is a large group of people who do not believe in global warning. To them, this will resonate. So I would be wary to say that this is a limited impact effort to shore up a congressman from Wyoming. Others from gas drilling states, from states that believe environmentalists are disrupting their way of life, etc. can sign up a co-sponsors and jump on the bandwagon. Then suddenly it snowballs and takes a life of its own.
  15. insightman

    insightman Well-Known Member Subscriber

    Congressman Mike Bishop from Michigan's 8th Congressional District arranged to have the $7,500 EV tax credit go away as part of the big tax bill passed last year, but after negotiations with the Senate, the EV tax credit was retained. Clearly, Mike Bishop is not attuned to his constituents because GM's Lake Orion Assembly plant where it manufactures the Chevy Bolt is in his district. If the EV tax credit goes away, it's likely that many of his constituents will be looking for a new job. Will that make Mike Bishop feel better?
  16. Most bills don’t survive, just because something was introduced doesn’t mean it has a chance of making it into law. When it gets past committee then it’s time for people to get engaged.
  17. On the other hand, a user fee is coming. Electric cars currently do not pay into the highway fund and that is coming both on the federal and state side.
  18. insightman

    insightman Well-Known Member Subscriber

    How can we help support the auto lobbyists who will be resisting these fees?
  19. lanb

    lanb Active Member

  20. interestedinEV

    interestedinEV Well-Known Member

    My understanding based on the Tesla website is different. Tesla is promising that anyone who books before 15th October, will be get a car before 12/31 to take advantage of rebates. If you book after, you are not guaranteed delivery before that day, you might still get it. It could be a tactic by Tesla to get the orders in early and if you procrastinate, you take a risk. It depends on how many people are willing to buy the Tesla.
  21. lanb

    lanb Active Member

    Hmm, that is what I said :)
    "Monday (10/15) is the last day to book"
  22. interestedinEV

    interestedinEV Well-Known Member

    You can book after that and you might still get it in time. But if you do it before then you are assured. It is semantics, but the way I would word it is "Monday (10/15) is the last day to book, if you want assured delivery before 12/31"

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