evboy
Posts: 192
Joined: Mon Jan 12, 2015 2:05 am

7500 tax credit going away asap

Thu Nov 02, 2017 8:14 am

the new tax plan is going to end the deduction at once. no phasing out. they are making the tax form simple with only a couple deductions. I wonder how this will effect used prices next year when its signed into law. the only reason we were able to buy a sparke for 9k was because of all the deductions that came off the top.
https://jalopnik.com/huge-tax-credit-fo ... 1820077592

SparkE
Posts: 386
Joined: Tue Sep 06, 2016 1:18 am
Location: SF Bay Area (San Jose, CA)

Re: 7500 tax credit going away asap

Thu Nov 02, 2017 9:38 am

The $7500 was a *tax credit*, not a deduction. Yes, there is a huge difference between the two.


Hmm. Maybe I will have to buy a replacement EV well before my current lease is up. I was counting on more and more 200-ish mile-range EV models hitting the market (Tesla Model 3, LEAF2, Bolt, new Ioniq EV, Kia Stonic, Kia Niro, ...) to continue driving down the price of the 80-ish range EVS, like the Spark.

{ Edit: Whoa! There's a 2014 CHEVROLET SPARK EV LT LT1, with only 20k miles for sale @ $7,599 in San Mateo, CA!! }

MrDRMorgan
Posts: 1127
Joined: Wed Oct 30, 2013 7:27 am
Location: Manteca in Central California

Re: 7500 tax credit going away asap

Thu Nov 02, 2017 10:12 am

SparkE wrote:The $7500 was a *tax credit*, not a deduction. Yes, there is a huge difference between the two.


Hmm. Maybe I will have to buy a replacement EV well before my current lease is up. I was counting on more and more 200-ish mile-range EV models hitting the market (Tesla Model 3, LEAF2, Bolt, new Ioniq EV, Kia Stonic, Kia Niro, ...) to continue driving down the price of the 80-ish range EVS, like the Spark.

{ Edit: Whoa! There's a 2014 CHEVROLET SPARK EV LT LT1, with only 20k miles for sale @ $7,599 in San Mateo, CA!! }
Unless the FEDs have change the rules, the $7500 federal tax credit is the "maximum" you can deduct against the federal taxes you owe. Stated differently, you can only receive a credit equal to the total federal taxes you owe. For instance, if, after you completed you federal tax return you owed $2500, you will only receive a credit of $2500 - not the full $7500. Said another way, if you owed $2500 in federal taxes, Uncle Sam is NOT going to give you a credit of $2500 AND send you a check for the remaining $5000. You only get $2500! Uncle Sam keeps the rest.

SparkE...2 weeks ago I did just as you stated - I bought a 2016 Spark EV 2LT with 6700 miles on it for $11.7K plus T&L and I get a $500 rebate from PG&E too. The 2016 will replace my leased 2015 Spark EV 2LT which goes back to the dealer at the end of May.
Last edited by MrDRMorgan on Fri Nov 03, 2017 8:25 am, edited 1 time in total.

CSW
Posts: 195
Joined: Tue Feb 17, 2015 8:37 am
Location: Sacramento,CA

Re: 7500 tax credit going away asap

Thu Nov 02, 2017 5:19 pm

This is terrible news people! This will wreak havoc on the EV industry as a whole. Chump is a horrible human being! I still can't believe he won..... disgusting.

MrDRMorgan
Posts: 1127
Joined: Wed Oct 30, 2013 7:27 am
Location: Manteca in Central California

Re: 7500 tax credit going away asap

Thu Nov 02, 2017 5:51 pm

CSW wrote:This is terrible news people! This will wreak havoc on the EV industry as a whole. Chump is a horrible human being! I still can't believe he won..... disgusting.
Don't just complain. Write your political representatives and let them how you feel. Check out http://www.pluginamerica.org.

Also Note: The current $7500 tax credit begins to drop by manufacturer when the manufacturer's TOTAL EV sales exceeds 200K EV vehicles.
Last edited by MrDRMorgan on Fri Nov 03, 2017 8:57 am, edited 1 time in total.

evboy
Posts: 192
Joined: Mon Jan 12, 2015 2:05 am

Re: 7500 tax credit going away asap

Thu Nov 02, 2017 8:32 pm

you guys r missing the whole point of my post. it doesn't matter if it was a credit or deduction or whatever. the prices of the used ev always reflected the 7500 plus 2500 in cali. 10k always came off the top once used. if u look on autotrader the bolt is selling for 30k with 1500 miles. the 10k came off quickly. now that the 7500 is gone, does the value of all used evs go up. before when people made a offer on a used ev, the buyer knew most owners got 10 k off and wanted at least that off. now when they make an offer on that used leaf or bolt, they cant assume the owner will sell it for 10k less plus regular depreciation.

CSW
Posts: 195
Joined: Tue Feb 17, 2015 8:37 am
Location: Sacramento,CA

Re: 7500 tax credit going away asap

Thu Nov 02, 2017 10:10 pm

Your point is true, but the even deeper point is that the 7500 is being ended by a Moron for no logical reason.

evboy
Posts: 192
Joined: Mon Jan 12, 2015 2:05 am

Re: 7500 tax credit going away asap

Fri Nov 03, 2017 2:05 am

CSW wrote:Your point is true, but the even deeper point is that the 7500 is being ended by a Moron for no logical reason.
I have to disagree some. The tax credit served its purpose to get the ball rolling until battery prices dropped. 2010 to 2017 is long enough for a tax credit that large. the ev industry needs to make it on its own now. battery prices have dropped , so now is a good time. also if they get rid of it companies will design smaller evs. something like a miata would be nice. a 2 seater would be a lot cheaper to manufacture.

NORTON
Posts: 1297
Joined: Fri May 01, 2015 5:52 am
Location: KC,MO

Re: 7500 tax credit going away asap

Fri Nov 03, 2017 4:25 am

evboy wrote:.... 2010 to 2017 is long enough for a tax credit that large. ...
But 'tax credits' to the oil barons and a military presence to make that business flow smoothly around the world should just continue forever.
Oh, and the pollution we all share, and enjoy, is just part of doing that business.
Used '14 2LT w/ DCFC. +82K miles.
Mostly free charging! Only one LONG visit to the shop....
GM needs Modern Troubleshooting tools for Modern EV's.
3 step Trouble Tree, 1st try car died again, 2nd try not covered / cost $800. 3rd try fixed the problem.

CCIE
Posts: 174
Joined: Tue Nov 22, 2016 8:47 am
Location: CT

Re: 7500 tax credit going away asap

Fri Nov 03, 2017 5:49 am

The credit was going to expire for GM & Tesla next year anyway. While I don't agree with suddenly ending it for everyone on 12/31/17, I wouldn't have an issue with it ending on 12/31/18. It's served its purpose and can't last forever. No point keeping it going to reward the lazy manufacturers who still haven't released any real EVs.
2018 Tesla M3 LR RWD
2015 Spark EV 2LT with DCFC (traded-in 8/2018)
2012 Volt

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