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Discussion Starter · #1 ·
I'm in the queue for a Trade Repurchase of my 2019 Bolt. My EV concierge told me I should "build" a new Bolt and that would get my case moving to the Repurchase team. A local dealer sent in a build order number for a stripped 2022 Bolt EV LT1 with a build date of 3/22/22. My EV concierge calculated my Swap Credit at ~$28,300, so my out of pocket cost should be very small.

Any opinions on whether the new 2022 Bolt would qualify for the new (I know it's not yet passed) Federal EV credit in the BBB bill.

I thought it would, as I believe it's treated as a new sale to me with a huge credit from GM - and the IRS doesn't care how the car's paid for, just that I bought a new EV that qualifies.

Some people think that it won't be considered a "sale," just a replacement, so we won't qualify.

Thoughts?
 

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Well, if we sold back our 2019 Bolt and trade/bought a 2022, that literally meets the definition of buying back better. LOL But as others stated, it's best to wait until the law gets approved as many things can change from now till then.
 

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Discussion Starter · #4 ·
Well, if we sold back our 2019 Bolt and trade/bought a 2022, that literally meets the definition of buying back better. LOL But as others stated, it's best to wait until the law gets approved as many things can change from now till then.
Right, but I'm trying to make an educated guess now. If it won't apply to a swap, then I'd take a straight repurchase. Otherwise a swap is a lot better for me.

Also, even once the bill is passed (if ever) whether a swap is eligible for the EV tax credit will depend more on how GM characterizes the trade repurchase on the sales contract than on the final contents of the BBB bill.

It would be really great to hear from someone who's completed a Swap to see what the GM sales contract looks like.
 

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Right, but I'm trying to make an educated guess now. If it won't apply to a swap, then I'd take a straight repurchase. Otherwise a swap is a lot better for me.

Also, even once the bill is passed (if ever) whether a swap is eligible for the EV tax credit will depend more on how GM characterizes the trade repurchase on the sales contract than on the final contents of the BBB bill.

It would be really great to hear from someone who's completed a Swap to see what the GM sales contract looks like.
It should look like you bought a car with trade in. But, yeah, more definitive if someone has one to show...
 

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https://rules.house.gov/sites/democrats.rules.house.gov/files/BILLS-117HR5376RH-RCP117-18.pdf page 1480 looks like it has the version recently passed by the House.
  • For new plug-in electric drive motor vehicles. Amount no more than 50% of purchase price.
    • $4,000 = base amount.
    • +$3,500 for battery capacity:
      • >= 40 kWh and no more than 2.5 gallon gasoline tank capacity before January 1, 2027.
      • >= 50 kWh and no more than 2.5 gallon gasoline tank capacity after December 31, 2026.
    • +$4,500 for "domestic assembly" (final assembly in the US at a place operating under a collective bargaining agreement).
    • +$500 for "domestic content" (battery is made in the US).
    • No more than one vehicle per taxpayer per taxable year may qualify for the credit.
    • Phase out ($200 subtracted for each $1,000 exceeding threshold) for taxpayer's modified adjusted gross income above threshold in current or previous taxable year:
      • $500,000 for joint return or surviving spouse (or half that amount for married filing separately).
      • $375,000 for head of household.
      • $250,000 for any other case.
    • MSRP limitation:
      • $80,000 for van.
      • $80,000 for SUV.
      • $80,000 for pickup truck.
      • $55,000 for any other vehicle.
  • For used plug-in electric drive motor vehicles that are at least 2 model years old, sold for <= $25,000 in the first transfer since the enactment of the law to a person other than the person who acquired it new.
    • $2,000 = base amount
    • +$2,000 for battery capacity:
      • >= 40 kWh and no more than 2.5 gallon gasoline tank capacity before January 1, 2027.
      • >= 50 kWh and no more than 2.5 gallon gasoline tank capacity after December 31, 2026.
    • Total credit no more than 50% of sale price.
    • Phase out ($200 subtracted for each $1,000 exceeding threshold) for taxpayer's modified adjusted gross income above threshold in current or previous taxable year:
      • $150,000 for joint return or surviving spouse (or half that amount for married filing separately).
      • $112,500 for head of household.
      • $75,000 for any other case.
 

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I think we need a hard cut off. A hybrid still uses petroleum and pollutes. Just not as much.
We need to spend the bucks as an insensitive to build more charging stations.
 

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I hate to bring rain, but I would advise you talk with a CPA about it. I have a suspicion that a “canceled check” or something showing that money has crossed over, like a loan showing the car as collateral is needed should the IRS question it.

Another possible source for this answer might come from your repurchase coordinator.
 

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We did a swap back in April from a 2019 to a 2021. It basically looked like buying a new car with a trade in. Sure, we only had to fork over $345, but the sales invoice still showed it as a $42,000 purchase with $41,655 trade in value.
 

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Discussion Starter · #13 ·
https://rules.house.gov/sites/democrats.rules.house.gov/files/BILLS-117HR5376RH-RCP117-18.pdf page 1480 looks like it has the version recently passed by the House.
  • For new plug-in electric drive motor vehicles. Amount no more than 50% of purchase price.
    • $4,000 = base amount.
    • +$3,500 for battery capacity:
      • >= 40 kWh and no more than 2.5 gallon gasoline tank capacity before January 1, 2027.
      • >= 50 kWh and no more than 2.5 gallon gasoline tank capacity after December 31, 2026.
    • +$4,500 for "domestic assembly" (final assembly in the US at a place operating under a collective bargaining agreement).
    • +$500 for "domestic content" (battery is made in the US).
    • No more than one vehicle per taxpayer per taxable year may qualify for the credit.
    • Phase out ($200 subtracted for each $1,000 exceeding threshold) for taxpayer's modified adjusted gross income above threshold in current or previous taxable year:
      • $500,000 for joint return or surviving spouse (or half that amount for married filing separately).
      • $375,000 for head of household.
      • $250,000 for any other case.
    • MSRP limitation:
      • $80,000 for van.
      • $80,000 for SUV.
      • $80,000 for pickup truck.
      • $55,000 for any other vehicle.
  • For used plug-in electric drive motor vehicles that are at least 2 model years old, sold for <= $25,000 in the first transfer since the enactment of the law to a person other than the person who acquired it new.
    • $2,000 = base amount
    • +$2,000 for battery capacity:
      • >= 40 kWh and no more than 2.5 gallon gasoline tank capacity before January 1, 2027.
      • >= 50 kWh and no more than 2.5 gallon gasoline tank capacity after December 31, 2026.
    • Total credit no more than 50% of sale price.
    • Phase out ($200 subtracted for each $1,000 exceeding threshold) for taxpayer's modified adjusted gross income above threshold in current or previous taxable year:
      • $150,000 for joint return or surviving spouse (or half that amount for married filing separately).
      • $112,500 for head of household.
      • $75,000 for any other case.
Nice to have all those details, though I'm not seeing where they shed any light on my question. It seems like if it's characterized as a sale for $30,000+ and I get a trade in credit as @p7wang suggests, the new EV credit should work. Just because you pay for the new car with a trade in or some other credit, doesn't make it less of a sale - it's just a different source of funds. I think the question is more if GM characterizes the transaction in some way that makes it look like it's not a sale. Anyone who's completed a Swap would be able to shed light on this.
 

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Discussion Starter · #14 ·
We did a swap back in April from a 2019 to a 2021. It basically looked like buying a new car with a trade in. Sure, we only had to fork over $345, but the sales invoice still showed it as a $42,000 purchase with $41,655 trade in value.
@ekutter Thank you! That tells me a lot.

BTW - are you in CA? There's a question as to whether GM is using the purchaser's Out the Door price as the basis for the trade credit? That is, some folks think that for a Swap, GM will credit the purchaser more than the Out the Door price if the purchaser got a GM rebate when they purchased the car. For example, GM gave me a $6,500 credit when I bought my 2019 Bolt. My EV Concierge explicitly told me that GM would subtract that from the Trade credit (makes sense to me), but some folks on this forum claim that GM includes all manufacturer incentives, giving the purchaser more in trade credit than they actually paid for the car.
 

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We did a swap back in April from a 2019 to a 2021. It basically looked like buying a new car with a trade in. Sure, we only had to fork over $345, but the sales invoice still showed it as a $42,000 purchase with $41,655 trade in value.
Yep, same here. I even received 20,000 Chevy rewards points ($200 of value) for my replacement car where I paid nothing out of pocket. Still need to decide what I want to spend that on...
 

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I'm in the queue for a Trade Repurchase of my 2019 Bolt. My EV concierge told me I should "build" a new Bolt and that would get my case moving to the Repurchase team. A local dealer sent in a build order number for a stripped 2022 Bolt EV LT1 with a build date of 3/22/22. My EV concierge calculated my Swap Credit at ~$28,300, so my out of pocket cost should be very small.

Any opinions on whether the new 2022 Bolt would qualify for the new (I know it's not yet passed) Federal EV credit in the BBB bill.

I thought it would, as I believe it's treated as a new sale to me with a huge credit from GM - and the IRS doesn't care how the car's paid for, just that I bought a new EV that qualifies.

Some people think that it won't be considered a "sale," just a replacement, so we won't qualify.

Thoughts?
If the credit is absorbed by GM, that would be a bummer. If so, I would like to buy every Bolt for $21,000 and resell them in IL at $25,000 beginning July 1, 2022. At that point they would qualify for $8,000 in rebates. With a new warranty we are going to need a new category of 'used car'. I suggest Born Again Bolt(BABy).
 

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Discussion Starter · #17 ·
If the credit is absorbed by GM, that would be a bummer. If so, I would like to buy every Bolt for $21,000 and resell them in IL at $25,000 beginning July 1, 2022. At that point they would qualify for $8,000 in rebates. With a new warranty we are going to need a new category of 'used car'. I suggest Born Again Bolt(BABy).
I'm not following that logic. If the credit's absorbed by GM, how are you going to get a new Bolt for $21,000?
 

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.. My EV concierge told me I should "build" a new Bolt ....
A local dealer sent in a build order number for a stripped 2022 Bolt EV LT1 with a build date of 3/22/22. ...
Hopefully not too stripped.
Don't forget the DCFC option, if that's still an add on. (y)
 

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"For new plug-in electric drive motor vehicles. Amount no more than 50% of purchase price.
  • $4,000 = base amount.
  • +$3,500 for battery capacity:
    • >= 40 kWh and no more than 2.5 gallon gasoline tank capacity before January 1, 2027.
    • >= 50 kWh and no more than 2.5 gallon gasoline tank capacity after December 31, 2026."
  • 2 1/2 gallon tank with a 40kwh battery?? That would be much more EV than PHEV and a car like this doesn't exist at the moment. The Chevy VOLT had a 18.7kwh battery pack and the new Toyota Rav4 Prime is 18.1kwh with a 14 gal tank. This rule seems to defeat the purpose of a PHEV in that most people use all electric around town and then for longer trips use gas. The 2.5 gal tank seems more for backup than actual driving. What am I missing?
 
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