teslarati97
Well-Known Member
Now if MINI could offer a sub $150/mo lease like they did for the BMW i3, then the tax credit is a moot point.
2023 MINI Cooper SE's Base Price Now $4,325 Higher In The US
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Didn't BMW take the $7,500 federal tax credit when they leased an i3? If they can no longer claim the federal tax credit, I assume they would compensate by making the lease payments more expensive.
teslarati97
Well-Known Member
Yes BMW Financial Services would get a $7,500 tax credit and reduce the lessee's net capitalized cost in theory. Back in 2015 you could stack additional rebates to get it down to $139/mo with tax in California.
BMW/MINI will have to offer a competitive lease if they don't start building EVs in North America. The BMW iX is already over $80,000 and it won't qualify for the SUV/Truck $7,500 tax credit in 2023 (if the bill passes). Likewise the BMW i4 eDrive40 will have to be reduced to $54,999 or less MSRP unless the i4 eDrive35 (newly announced) will serve that purpose. The i4 M50 is already $67,300 MSRP and wouldn't make the $55,000 threshold for cars.
AndysComputer
Well-Known Member
Does any car qualify for the credit as the proposed bill is worded?
teslarati97
Well-Known Member
(11) MANUFACTURER’S SUGGESTED RETAIL PRICE LIMITATION.
(A) IN GENERAL.—No credit shall be allowed under subsection (a) for a vehicle with a manufacturer’s suggested retail price in excess of the applicable limitation.
(B) APPLICABLE LIMITATION.—For purposes of subparagraph (A), the applicable limitation for each vehicle classification is as follows:
(i) VANS.—In the case of a van, $80,000.
(ii) SPORT UTILITY VEHICLES.—In the case of a sport utility vehicle, $80,000.
(iii) PICKUP TRUCKS.—In the case of a pickup truck, $80,000.
(iv) OTHER.—In the case of any other vehicle, $55,000
(C) REGULATIONS AND GUIDANCE.—For purposes of this paragraph, the Secretary shall prescribe such regulations or other guidance as the Secretary determines necessary or appropriate for determining vehicle classifications using criteria similar to that employed by the Environmental Protection Agency and the Department of the Energy to determine size and class of vehicles.
Is a crossover considered a SUV? That is the $80,000 question.
AndysComputer
Well-Known Member
But based around wording on the battery factory location, and the source of minerals for said battery. Is any car eligible?
teslarati97
Well-Known Member
Tesla Model 3 RWD, Chevy Bolt, and maybe if VW ever decided to make the ID.3 in Chattanooga? Small crossover SUVs (<6,000 lbs) are still sport utility vehicles and should be under the $80,000 MSRP threshold.
The proposed bill also does not amend the plug-in >4kWh battery requirement so technically domestic PHEVs would still qualify for the full $7,500 credit. Soon your local Level 2 public charger will no longer be ICE'd, but you will be PHEV'd! Time for Toyota to start churning out those plug in hybrids!
The proposed bill also does not amend the plug-in >4kWh battery requirement so technically domestic PHEVs would still qualify for the full $7,500 credit. Soon your local Level 2 public charger will no longer be ICE'd, but you will be PHEV'd! Time for Toyota to start churning out those plug in hybrids!
The Washington Post confirmed my suspicions that no car can qualify for the new federal EV tax credit based on the new requirements (the link may be paywall restricted):
Carmakers Say the Climate Bill Sets Impossible Targets
After listing all the problems of trying to replace China in the supply chain, the article ends with some guarded optimism:
“It doesn’t just set tough metrics and say, ‘Good luck,’ ” said Joe Britton, executive director of the Zero Emission Transportation Association. “I do think it gives us a pathway to pull these supply chains out of Asia. It is just a matter of how quickly we can do it.” The association is joining car companies in urging lawmakers to ease the deadlines for onshoring the mining, processing and assembly activities involved in battery production.
“Every six months we can push this back gives people time to pull these supply chains out of Asia,” Britton said. “We want the most vehicles and consumers to be eligible for these credits as possible.”
Those urging lawmakers to stand firm on the supply chain targets in the bill say automakers are overplaying their potential to slow down the transition into zero-emission cars and SUVs. Among them is Morgan Bazilian, director of the Payne Institute at the Colorado School of Mines, who says lawmakers and the industry for too long have neglected supply chain instabilities that are fast becoming an existential threat to the energy transition.
“Having these goals is a good thing,” Bazilian said. “If we put these ambitious — even heroic — targets into the bill and nobody is able to meet them, there is flexibility for agencies to adjust them later. We see this happen with all kinds of policies, and this is no different. There is always flexibility in the implementation phase.”
Carmakers Say the Climate Bill Sets Impossible Targets
After listing all the problems of trying to replace China in the supply chain, the article ends with some guarded optimism:
“It doesn’t just set tough metrics and say, ‘Good luck,’ ” said Joe Britton, executive director of the Zero Emission Transportation Association. “I do think it gives us a pathway to pull these supply chains out of Asia. It is just a matter of how quickly we can do it.” The association is joining car companies in urging lawmakers to ease the deadlines for onshoring the mining, processing and assembly activities involved in battery production.
“Every six months we can push this back gives people time to pull these supply chains out of Asia,” Britton said. “We want the most vehicles and consumers to be eligible for these credits as possible.”
Those urging lawmakers to stand firm on the supply chain targets in the bill say automakers are overplaying their potential to slow down the transition into zero-emission cars and SUVs. Among them is Morgan Bazilian, director of the Payne Institute at the Colorado School of Mines, who says lawmakers and the industry for too long have neglected supply chain instabilities that are fast becoming an existential threat to the energy transition.
“Having these goals is a good thing,” Bazilian said. “If we put these ambitious — even heroic — targets into the bill and nobody is able to meet them, there is flexibility for agencies to adjust them later. We see this happen with all kinds of policies, and this is no different. There is always flexibility in the implementation phase.”
Texas22Step
Well-Known Member
It looks like the $7,500 federal tax credit for the MINI is in fact toast, since I saw on the news last night that Sinema decided to vote for this bill.
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teslarati97
Well-Known Member
I would laugh if BYD, XPENG, or NIO dumped EVs in USA with dirt cheap leases. Actually the better way is to sell a solar PV system with automotive grade high voltage battery modules. That way you can just claim the 30% tax credit of the entire solar PV + battery costs and conveniently build an EV with the newly 30% subsidized "recycled" battery modules.