"Congress considers EV tax credit revamp to help Tesla, GM, and used EVs"

Texas22Step said:
FYI, but don't hold your breath.....
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Absolutely right.

Certain obvious things with this bill
  1. It is called the "GROWING RENEWABLE ENERGY AND EFFICIENCY NOW (“GREEN”) ACT". Putting Green in the name is not going to get support from some quarters, in fact it might drive opposition.
  2. It has no Republican co-sponsors, so may pass only on party lines in the house
  3. That means it is unlikely to get traction in the Senate, which has not shown an enthusiasm for house bills anyway
Again, this is not a political statement, I am just being pragmatic and factual. Remember it has to pass by about early December 2020 (just about a year from today), after which a new congress is sworn in and it is back to the drawing boards.

There may be some bi-partisan effort and something may happen at the last moment, but it is seems a long shot, unless the green automotive lobby is able to influence the discussion. While GM (and obviously Tesla) will benefit, others may not want to give Tesla and GM an advantage. Ford, for example can still get the benefit while denying it to GM and Tesla. So I would surprised if they are united either. The oil lobby will likely oppose it.

Philosophically, while, I agree that while Tesla and GM should not be penalized for reaching targets, other manufacturers should not be subsidized for long and be allowed to take their own sweet time. They better get their act together or cede the market to Tesla. The other manufacturers need a kick in the pants.

Here is the link to the bill
https://mikethompson.house.gov/sites/mikethompson.house.gov/files/11-19-19 GREEN Act Section-by-section Summary FINAL.pdf
 
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Maybe I was being a little pessimistic. It seems there is some bi-partisan support so things may happen, but it is still a ways away and anything can happen



https://insideevs.com/news/388159/ev-tax-credit-extension-explained/
Updated EV Tax Credit Getting Broad Bipartisan Attention & Support

For those interested in more details about the proposed credit extension, Bloomberg's Tom Randall lays it all out rather nicely in the following tweets and lengthier Twitter thread:


For those watching the EV tax credit, here's the latest I've seen: Talks were held yesterday, led by Senate Finance Committee Chairman @ChuckGrassley. There's a push to get a deal on temporary tax breaks (known as extenders) into Tuesday's spending bill 1/ https://t.co/AaRHwQYNEG

— Tom Randall (@tsrandall) December 16, 2019
 
I would certainly hope for all of the above, as I did all of that a couple of months ago. That 30% plus the $7500 credit will be most welcome!
 
It appears to be both of those

Here is some guidance for 2016 but that carried over to 2017. The actual cost of the materials (so the materials to get the circuit to where the charger is installed, the cost of the charger and the labor) is included. So I would say both. On the other hand if you had to build a wall or you wanted to put a roof or shade, that is not included.

Remember the credit is 30% subject to a maximum is $1000 for homes. Home Advisor estimates typical cost of parts and labor for a level 2 charger is about $1000-2000. You could do it yourself or get a discounted charger etc. So your credit will about $300 to $500 typically. If the cost of the installation goes beyond $3334, you will get only $1000 no matter how much. So if you had to put a new circuit in your house or change out the transformer as the load is to high (as in some older homes), you are going to be looking at much larger cost.


(I am not a tax advisor, so you may want to consult one, but based on my understanding the cost of the wiring, the receptacle and charger will be covered, but not the cost of any additional infrastructure)


https://www.homeadvisor.com/cost/garages/install-an-electric-vehicle-charging-station/
upload_2019-12-19_12-22-55.webp




https://www.google.com/url?sa=t&rct...ct_sheet.pdf&usg=AOvVaw0B-MvPyOfKWKOKcw9fguJC

ELECTRIC VEHICLE CHARGING STATIONS TAX CREDIT FACT SHEET
The Fixing America’s Surface Transportation (FAST) Act reauthorized the tax credit for alternative fuel vehicle refueling property until December 31, 2016. This federal tax credit provides buyers significant tax savings and a great incentive for organizations considering installing electric vehicle charging stations.
What Qualifies for the Credit: Your electric vehicle charging station qualifies as alternative fuel vehicle refueling property (not including a building and its structural components) if:
It is used to recharge an electric vehicle, but only if the charging station is located at the point where the vehicle is recharged.
 You placed the charging station in service during the tax year for which you’re claiming the credit.
 The original use of the charging station began with you.
 If the station is not a business/investment use property, the station must be installed on property used as your primary home.
Exemptions: If you are a seller of new vehicle charging stations to a tax-exempt organization, governmental unit, or a foreign person or entity, and the use of that station is described in section 50(b) (3) or (4) of the Internal Revenue Code, you can claim the credit, but only if you clearly disclose in writing to the purchaser the amount of the tentative credit allowable for the charging station. All charging stations eligible for this exception should be treated as business/investment use property.
Amount of Credit:
If your charging station is considered personal use property, the credit is:
 The smaller of 30% of the station’s cost* or $1,000.
If your charging station is considered business use property, the credit is:
 The smaller of 30% of the station’s cost* or $30,000


https://www.irs.gov/pub/irs-prior/i8911--2017.pdf also has some guidance
 
interestedinEV said:
It appears to be both of those

Here is some guidance for 2016 but that carried over to 2017. The actual cost of the materials (so the materials to get the circuit to where the charger is installed, the cost of the charger and the labor) is included. So I would say both. On the other hand if you had to build a wall or you wanted to put a roof or shade, that is not included.

Remember the credit is 30% subject to a maximum is $1000 for homes.
Click to expand...

Yes, this is all very interesting info and is highly likely to carry over into tax years 2018 and 2019 as well, but we will have to wait to see what specific guidance the IRS provides with the new form(s) to claim this credit to have a more complete picture.

Some other attributes of this particular credit from its previous incarnations that may also carry over include:
  • Like the EV purchase credit, this credit was available only to the extent it could be used by the taxpayer to offset tax liability in the year claimed. There was no carry-forward or carry-back. This seemed more reasonable when one could possibly "adjust" tax liability for a given year by accelerating income into the current year, deferring other deductions into a subsequent year, converting traditional IRAs into Roth IRAs, withdrawing more from a retirement account that would result in taxable income, etc. But, no such opportunity exists for wholly retroactive application of this credit for installations made in 2018, so we will see if they vary the rules for wholly retroactive application.
    • (But, if you are like @davidm (above), make sure you have enough taxable income in 2019 to absorb BOTH the EV purchase credit AND now the EVSE credit, as any amounts left not absorbed are lost. You still have some days left in 2019 to "fine tune" your taxable income, if you can.)
  • My recollection is that the 2017 and earlier EVSE residential credit was a credit limited to the 30% / $1,000 limits. However, I also recall that if one changed their primary residence during the same tax year and paid for EVSE installations in both homes, you could take credits up to $2,000 for that year only. (This is not the case with the EV purchase credit, which I believe can be claimed for each qualifying vehicle a taxpayer puts into service in a given year.)
  • The "cost" to which you can apply the 30% credit I believe includes all parts reasonably necessary for a functional installation. For me, I believe that includes more than the wall plug itself, but also an electrical box in which to mount the plug, wire, wire restraints, circuit breakers, etc., as well as the EVSE device and installation labor (but NOT infrastructure like new walls or roof or a carport, etc.).
Once again, and like @interestedinEV said, remember to talk to a real tax professional -- which I am NOT!
 
@Texas22Step Good points

Texas22Step said:
But, if you are like @davidm (above), make sure you have enough taxable income in 2019 to absorb BOTH the EV purchase credit AND now the EVSE credit, as any amounts left not absorbed are lost. You still have some days left in 2019 to "fine tune" your taxable income, if you can.)
Click to expand...

In other words if you have a BEV and put a charger, you can take up to $8500 in credits, provided the vehicle you have is eligible for $7500 credit. If you buy a Tesla today, your maximum Tax credit would $1875 for the car + up to $1000 for the charger, so it depends on your car and how much you spent for the charger. If you spent $1000 on the charger then your charger credit is only $300.

Also check out incentives for your state, local government and local utility. You had a lot more on them in 2017 and many of them expired with the Federal tax credit, but if you in California and few other states, there are still some incentives left in addition to the Federal
 
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