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would not be at all surprised if they eliminate it for purchasers in 2017. trump is actively trying to punish people who did not vote for him - see the reduction in martgage interest (capped at $500k of debt) and the limit on the state income deduction to $10k. this will mainly affect people in HCOL areas like NY and CA that voted for clinton.
 

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Take a breathe. They will probably be as successful with tax reform, as they have been with everything else.
I'm sure the lobbyists will have a field day with most aspects the tax plan along the way. This will probably include auto industry lobbyists, as many of the manufacturers are looking at a significant expansion of EV products. For a rousing display of name calling, go to the comments section of the related article on Jalopnik.
 

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If adopted, the repeal would take effect after the 2017 tax year, according to a summary of the bill released Thursday by the House Ways and Means Committee as part of a sweeping overhaul of the U.S. tax code that would eliminate some deductions and cut the corporate tax rate to 20 percent. The Senate is crafting its own version.
https://www.bloomberg.com/news/articles/2017-11-02/tax-credit-for-electric-cars-said-to-be-axed-in-gop-tax-proposal

I think most expected proposed tax reform to eliminate the EV credit. What is proposed and what actually gets passed are rarely identical. The EV credits may or may not survive. Time to contact your representatives in both the House and Senate.

As a side note, the above article ties the drop in Tesla stock to this proposal, when it is much more likely attributable to the quarterly update with significant delays confirmed on the Model 3 (and their biggest quarterly loss to date with the note that next quarter is likely to be worse).
 

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I was planning to buy a Bolt Premier, est. $43,500, next year. If the proposed elimination of the tax credit takes place, I will postpone my purchase until the price of a Bolt Premier or a comparable model drops to $36,000. I will probably be in for a long wait.
 

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I was planning to buy a Bolt Premier, est. $43,500, next year. If the proposed elimination of the tax credit takes place, I will postpone my purchase until the price of a Bolt Premier or a comparable model drops to $36,000. I will probably be in for a long wait.
From Bloomberg today: The carmaker [GM] had sold 126,000 of its Chevrolet Volt plug-in hybrids through August, along with 12,000 of the Chevy Bolt EV and 7,000 of the tiny Chevy Spark EV, according to IHS. The program doesn’t end abruptly when a carmaker reaches 200,000 in sales.

126,000 + 12,000 + 7000 = 140,000

Don't wait too long.
 

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The elimination is not unexpected, but disappointing.

If eliminated I would expect it would be for 2018 tax year, very few tax laws are retrospective. (I am a CPA specializing in Taxation)

EV are coming regardless as other countries eliminate ICE the car makers will need to sell EV in the USA to help with economics of scale. The upside is that if you got the credit then your EV may depreciate more slowly as new EV in 2018 no longer have the credit which makes used EV more desirable.
 

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Discussion Starter #11
The elimination is not unexpected, but disappointing.

If eliminated I would expect it would be for 2018 tax year, very few tax laws are retrospective. (I am a CPA specializing in Taxation)

EV are coming regardless as other countries eliminate ICE the car makers will need to sell EV in the USA to help with economics of scale. The upside is that if you got the credit then your EV may depreciate more slowly as new EV in 2018 no longer have the credit which makes used EV more desirable.
I wonder is this might drive a year end spike in sales for all EVs (that can be delivered).
 

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Potentially, anyone on the fence should reconsider the timing, the other part the consider is even if the credit is maintained but the rest of the tax cuts pass you may no longer have enough income tax to of set with the credit. This will have to be factored into all individual tax planning!
 

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Well guys & gals if you didn't run around yelling about how the tax bill would help the rich they might have left it in since in the scheme of things it can't have that big an effect on tax revenues. But how could they argue for leaving it in when you scream the rich are the ones getting the tax breaks? As they see it, anyone that can afford the equivalent of a BMW or Mercedes ($35K +++) is the rich and doesn't need a tax break.

I was counting on it for the Tesla M3 I have on order for delivery in the first quarter to justify the expense on a retirement income. Now I may have to reconsider. I think it will have a significant impact on EV sales unless manufacturers cut prices (highly unlikely on cars they sell at a loss or break even). Here in CA, you can't even get the State rebate so losing the $10K price reduction ($2,500 state & $7,500 Fed) is significant.

Here is a link to an article discussing its impact: http://www.zerohedge.com/news/2017-11-02/teslas-having-worst-day-ever-gop-tax-plan-calls-axing-electric-car-credit

If you think they are wrong look at what happened in Georgia when they eliminated the tax incentive: https://www.greencarreports.com/news/1100751_georgia-electric-car-sales-plummet-after-incentive-replaced-by-tax
 

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When I purchased in July one of my considerations was that the tax rebate might go away. I also kept my volt instead of trading it is thinking the resale value might go up when the rebate went away....hoping I'm wrong.
 

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The question you have to ask yourself is the following: for $39K (average price of a Bolt) would you rather drive an EV with low quality finish, or a high end ICE?

Well, speaking very candidly and directly, there is no way in **** I would have dropped $39K on a car like the Bolt. It's cute, it's practical, it's exciting because of the EV technology, but it's most definitely NOT a $39K car. It's basically a Sonic with a redesigned exterior. Is that worth that kind of money? For me, absolutely not. Absent the tax deduction that helped lower my lease to $225/month I wouldn't even have considered buying it.

For $39K I would have been looking at a Premium Plus A3, a Jeep Grand Cherokee Altitude, An xDrive 320i or any such vehicle that offer much better quality than Chevrolet does. To me, the Bolt was about getting something exciting for little money. Take away the benefit of little money and I just wouldn't go for it.

In my opinion, this pushes more people towards Tesla. After all, if you're going to put that kind of money to get an EV, would you rather a Chevy or a Tesla?
 

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Well guys & gals if you didn't run around yelling about how the tax bill would help the rich they might have left it in since in the scheme of things it can't have that big an effect on tax revenues. But how could they argue for leaving it in when you scream the rich are the ones getting the tax breaks?
Are you suggesting that people try to keep it on the down low that they are trying to give tax breaks to the rich? That seems silly to me. And pretty unethical.

This is not an administration that even believes in global warming, why should they care about alternative energy?
 

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Well this should motivate anyone on the side lines to buy. ON the price game, let's be real, a dealer that has too much inventory will play to drop price. I bought the Premier significantly less than MSRP. Actually if I am not mistaken it was as much as the LT with a few ad on. My out the door cost was less a good amount less than MSRP.

Key is find the cheapest car in drivable distance, get a ONLINE quote and negotiate with the dealer with the most inventory. If a dealer has 10 cars at 35-45k a pop they need to move them. I have yet to see my deal on this blog. to avoid ENVY I am not telling anyone what I bought my ride for.
 

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Let's Tax the Rich!

Are you suggesting that people try to keep it on the down low that they are trying to give tax breaks to the rich? That seems silly to me. And pretty unethical.

This is not an administration that even believes in global warming, why should they care about alternative energy?
I'm saying that politicians are always more worried about perception than reality. (By the way, since when do politicians care about ethics?) The public perception is that this tax credit is a tax break for the rich because ONLY the RICH could afford an EV. It doesn't matter whether that is reality or not. So politicians are looking for ways to be able to say that this tax bill doesn't favor the rich. It doesn't matter that $7,500 times the total number of EV's sold in a year is a small drip in the tax bucket and wouldn't pay for anything of significance. If you look at the vehicles sold this year that would qualify for the $7500 I get 72,360 give or take a few. That times $7,500 is $542,700,000. In the federal budget that is a pittance. If you join the chorus saying tax the rich, just remember that to the general public you are the rich if you can afford to buy an EV. As the old saw goes, be careful what you ask for you just might get it.
 

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I don?t think this has anything to do with ?taxing the rich.? Incentivizing EVs is legitimizing climate change and efforts to slow it. Can?t have that!
 
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