Did the "big bill" just end EV Tax Credits for Slates? [WARNING: NO POLITICS]

[sodamo]

Well, perhaps because whether directly or indirectly, fossil fuels subsidies affect everyone, acknowledged or not, even you.

 

[Karl Childers]

I just saw this part of the bill, buying a U.S. made vehicle. Might take away some of the sting if EV credits go away.

 

[Letas]

For those of us considering financing instead of paying cash for your new Slate, here is another incentive currently included in the big, beautiful bill...

"Provide deduction of up to $10,000 for loan interest on new vehicles that undergo final assembly in the U.S. For tax years 2025-2028."

So, if the bill passes and you take delivery in 2027, appears you can write off the interest on the loan for 2 years. That's not bad considering the first two years of an auto loan are heavily biased towards interest and very little is applied to the principal.

Assuming the ev credit no longer applies (a safe bet) and you finance the entire amount with tax ($30K) @ 7% the interest paid in the first 24 months is $3,280 that can be written off your taxes. Not too shabby.

Deduction, not credit.
More like a $900 savings.

$7500>$900

 

[metroshot]

No more EV tax credits effective today.
US made EVs only until Sept 30, 2025....

 

[E90400K]

Now that the crutch is gone, if the industry wants to sell EV, perhaps they'll develop a better battery at a lower cost.

 

[E90400K]

All that would be fine and well if fossil fuels themselves weren't so heavily subsidized . . . and that this legislation also didn't go after the domestic manufacturing of solar, batteries and the like with such a vengeance. It's all very stupid and short-sighted at this point.

I don't have an ideological purity test so refined that I would say we should never have subsidies in place to advance new technologies. A careful review of history will indicate we've done it with just about everything at one point or another, typically to the betterment of our lives and the establishment or reinvention of home-based manufacturing.

Government isn't a business. It's a service. Subsidies are there to jump start new business ideas in the private sector and then are designed to fade or "get out of the way" eventually. The original 2007 to 2022 EV tax credit capped 200,000 units per manufacturer. What it ended up doing, unfortunately, was to penalize manufacturers who were early to the market with their EVs and sold a lot, because they were better cars than what the other guy was making. So, yes, subsidies can hurt business if they were designed poorly from the start or can't be revised along the way.

Biden era EV subsidies (Build Back Better through the Inflation Reduction Act) set a timeline for these subsides to fade out for all manufacturers by 2030. That was a better plan than the old one. At first, there were also provision for union manufacturing. Elon, of course, hated that, because Tesla is famously non-union. So those got dropped. There were always provisions for more domestic manufacturing over importing. I don't think that was a bad thing, since it encouraged new investment and new hiring on these shores. That's what ended up getting passed in late 2022. I think it was something good for both the industry and the consumer, while keeping us competitive with the rest of the world. With some tweeking here and there over the upcoming years, it should have simply been allowed to run its course and expired on time in 2030.

So, yes, I'll ask again . . . after more than a century of doing so, why are we still subsidizing the fossil fuel industry? Where's your outrage there? If a gasoline car was still cheaper to buy (compared to an EV) but the fuel was not just twice as expensive but, instead, 4 TIMES AS EXPENSIVE as comparable units of electricity, what do you think would happen to the gasoline vehicle market at that point?

The sunset date was 2032. But by then 15-minute 1,000-mile sodium-solid-state batteries costing $28/kWh were going to be prevalent (sarcasm).

 

[Blackspots76]

As much as I'm bummed about us potentially losing the EV credit, I work 12 hour days and 3.5 hours of that is time and a half overtime that potentially won't be taxed. It'll counter the EV tax credit loss but it's not me that I want to save on a Slate, it's everyone else wanting one!

My state doesn't have a state EV credit of any kind, but I hope to soften the blow by selling my beat-to-hell commuter car for at least $3,000.

Like with the no tax on tips, it'll likely have the same fine print as the tips tax.

1.) Taxes for the tips still get deducted from your paycheck
2.) The cut-off is $25,000 in tips
3.) You can get the taxes on your tips back if you itemize your deductions (missing out on the $15,000 standard deduction)

 

[Blackspots76]

lol oh yah the ones that if you broke you had to call hazmat right

Yes. Mercury inside the bulb. Note that long tube florescents have had the same issues since the 1950s or thereabouts.

Any light that requires a ballast to operate requires a tiny amount of mercury. That also includes high and low pressure sodium street lamps, and even the mercury vapor street lamps (kind of obvious there). But the amount of mercury in fluorescent lights is miniscule. The little CFLs probably had a microscopic amount. 4' and 8' tube fluorescents probably had about a square millimeter of mercury in them.

 

[KevinRS]

Even the tax credit, just like the solar one that is also being eliminated, had a hidden lower limit on income. You could only apply it to tax owed. I calculated it out a few days ago, and for someone filing single, with nothing but the standard deduction, no retirement or anything, you needed to make $71,600 to get the full $7500 credit.
This is part of why most EVs have been targeted at the luxury market: the median income in the US as of 2023 was $39,982. The median household income was around $75k, but that comes with a higher standard deduction, so even looking at households instead of individuals, it was targeted at the top half. Not the very wealthy, because there was an income limit, but still, this drove manufacturers to only offer heavily loaded vehicles to take advantage of it.
This is where Slate is going the opposite direction, dropping the excess load of features to make something people can afford. A big part of their sales will probably be fleets and businesses once they launch, because most trucks are in the $70k range, everything has 4 doors and seats 5, has a 11 inch screen, sound system, etc, that the house painting company or landscaper doesn't need.

 

[B1050]

I like how the title has a [No Politics] warning. The thread is literally about a bill passed without a single Democrat vote (and two republicans jumping ship) that passed by one vote and we somehow should try to leave politics out of the conversation? That is impossible. That's like talking about boats without mentioning anything that floats on water.

 

[cadblu]

I like how the title has a [No Politics] warning. The thread is literally about a bill passed without a single Democrat vote (and two republicans jumping ship) that passed by one vote and we somehow should try to leave politics out of the conversation? That is impossible. That's like talking about boats without mentioning anything that floats on water.

I'm not 100% certain but I believe the title was modified by the Administrator to add the "No Politics" warning. This is in accordance with the Ts and Cs of the forum rules.

 

[Doctors Do Little]

I can go to Reddit or some other forum if I want to read vitriol bc one party is doing something the other one hates. Elon gonna spend a couple of Billion creating America Party though? (I voted for Ross Perot twice, so I understand the want for something different.)

 

[sodamo]

I can go to Reddit or some other forum if I want to read vitriol bc one party is doing something the other one hates. Elon gonna spend a couple of Billion creating America Party though? (I voted for Ross Perot twice, so I understand the want for something different.)

You might have to tell some folks who that was. 😁

 

[Doctors Do Little]

I met him in Dallas as an 18 year old in the 1980’s and he was very kind to me, so I rebelled against the establishment candidates and voted for him twice in 1992 and 1996. Bill Clinton sent me a personal “thank you” card, I think?