Could the Federal Tax Credit for EVs/Plugins go away in 2019?

Discussion in 'Prime Main Forum (2017-Current)' started by RobFL, Oct 6, 2018.

  1. RobFL

    RobFL New Member

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    Here's why I ask. Tesla and Chevy are both close to sales of 200,000 EVs/Plugins. This is the point where the incentive starts to phase out. Note that both of these car manufacturers are really the only serious American participants in this segment (Ford doesn't seem to be putting big effort into this sector).

    That leaves...only foreign players (Toyota, Nissan, BMW, Honda, etc) for 2019 that would be getting the rebate, causing a disadvantage to American manufacturers. The current USA administration is very pro-USA, is already rolling-back fuel economy standards, and is looking at tariffs to make the playing field even with foreign auto manufacturers.

    I know this was voted on last year in a tax bill. Is this voted on or amended yearly?
     
  2. dubit

    dubit Senior Member

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    Personally I think they should do away with it.

    The Gov subsidizes everything - the less the better.
     
  3. Georgina Rudkus

    Georgina Rudkus Senior Member

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    I do not believe in government subsidies. Anytime, there's a subsidy, the manufacturer or the vendor raises the price, that artificially raises the price and degrades the resale value of a vehicle.

    It's like tariffs. It might help one industry and hurt another.

    The biggest boondoggle is ethanol. It costs more in energy and money to produce than gasoline. It raises the eventual cost of food to the consumer.

    It's there to subsidize the farmers in states like Iowa, where the earliest Presidential primaries are held. .
     
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  4. fuzzy1

    fuzzy1 Senior Member

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    I don't believe so. It would require new Congressional action to terminate it early.

    Which in theory, could have happened already without any noticing, buried deep inside the latest appropriation bills during their late night sausage making. That is what happened to my state's sales tax exemptions for hybrids in 2009, and plug-in cars this year. Details didn't get publicized until after the fact.
     
    #4 fuzzy1, Oct 6, 2018
    Last edited: Oct 6, 2018
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  5. huskers

    huskers Senior Member

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    When they are messing with taxes this comes up. Now that that is over (for now) it should be safe as long as the range is not hit. But who knows with this current administration. Tax credits help push people in a direction. In this case towards cleaner energy. This helps us all.
     
  6. Trollbait

    Trollbait It's a D&D thing

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    The tax credit did help in the beginning, but likely really needed now.

    They are trying to get the temporary tax cuts made permanent, so they are still messing with them.
     
  7. Georgina Rudkus

    Georgina Rudkus Senior Member

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    No, no Congressional action is needed. My friend is a retired Federal administrator. According to the Administrative Procedures Act, all the agency would have to do to restructure the program is to publish the NEW proposed rules, provide a 90 day review and comment period, and then publish the final rule.

    It does not require an Act of Congress.
     
  8. bisco

    bisco cookie crumbler

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    probably won't change
     
  9. Georgina Rudkus

    Georgina Rudkus Senior Member

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    Yeah; like all of the environmental standards being quietly rolled back in the current administration, politics notwithstanding.
     
  10. bisco

    bisco cookie crumbler

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    nevertheless, i stand by my statement. the future is unpredictable though, i'll give you that much.
     
  11. priuscatprimeguy

    priuscatprimeguy Senior Member

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    Did my taxes $2750 refund from federal without the EV tax credit I would owe $900, best decision I made was to purchase a new 2020 Prius prime limited in October 2019

    Posted via the PriusChat mobile app.
     
  12. dubit

    dubit Senior Member

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    Glad my taxes helped to get you a refund.
     
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  13. john1701a

    john1701a Prius Guru

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    That isn't how tax-credits work. It isn't ever money from someone else. It is a reduction of what you would normally pay, a portion of your own lability. In other words, you get to keep more of your paycheck.
     
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  14. triggerhappy007

    triggerhappy007 Active Member

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    Ignore him, that's not the first time he said that. And probably not the last.
     
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  15. fuzzy1

    fuzzy1 Senior Member

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    No, your taxes didn't help pay for his refund. Nor did anyone else's taxes pay for it. We are now running a Trillion dollar annual deficit.

    I'm not expecting the promise to eliminate the national debt (not just the annual deficit) by January 20, 2025, to appear in any of the "Promises Made, Promises Kept" advertisements.

    Posted via the PriusChat mobile app.
     
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