1. Attachments are working again! Check out this thread for more details and to report any other bugs.

Featured Edmunds on elimination of federal tax credits

Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by bwilson4web, Jun 8, 2017.

  1. bwilson4web

    bwilson4web BMW i3 and Model 3

    Joined:
    Nov 25, 2005
    27,123
    15,389
    0
    Location:
    Huntsville AL
    Vehicle:
    2018 Tesla Model 3
    Model:
    Prime Plus
    Source: https://static.ed.edmunds-media.com/unversioned/img/industry-center/analysis/EV_Report_April17.pdf

    Federal tax credits for EVs are a part of broader set of EPA policies, which require congressional approval to adjust. So the Trump administration may not eliminate them prematurely but is unlikely to extend these credits. Without these credits, this market is likely to crash. While President Trump did not address federal EV tax credits speci cally in his 2018 budget blueprint released last month, he proposed the elimination of funding for the Department of Energy’s Advanced Technology Vehicles Manufacturing (ATVM) loan program, which would have assisted future EV production.

    Without these credits, this market is likely to crash.

    Georgia case study
    What happens when subsidies go away

    The state of Georgia witnessed tremendous success with EV sales and boasted the second-highest EV sales rate in the U.S. behind California. In 2014, the state accounted for 17 percent of all EVs sold in the U.S. Driving these remarkable numbers was not just shoppers’ dedication to the environment but the state’s o er of a $5,000 tax credit for zero-emission vehicles, in addition to the $7,500 U.S. federal tax credit. These generous incentives could be applied to new vehicles purchased or leased, putting a big dent in the overall cost.     ​

    An interesting report, well worth a close reading. Living in Alabama, I was aware something was happening in Georgia but I didn't have the details. Since then, I understand Georgia also implemented an extra EV registration fee which would also have an effect. I've not found anything in this report about that effect.

    Bob Wilson
     
    #1 bwilson4web, Jun 8, 2017
  2. Trollbait

    Trollbait It's a D&D thing

    Joined:
    Feb 7, 2006
    21,711
    11,313
    0
    Location:
    eastern Pennsylvania
    Vehicle:
    Other Non-Hybrid
    No time to look at the moment, but I don't see plug ins going away with the incentives. There were reports that the battery costs are now below that of the federal incentive amount. Sales will hurt when the go, until the prices are adjusted by the manufacturer. Even if untouched, Tesla and GM will be losing the federal tax credit in the near future. So we will see.
     
    #2 Trollbait, Jun 8, 2017
  3. bisco

    bisco cookie crumbler

    Joined:
    May 11, 2005
    107,690
    48,943
    0
    Location:
    boston
    Vehicle:
    2012 Prius Plug-in
    Model:
    Plug-in Base
    fortunately, there's an election in 2020, my pip should be good until then.
     
    #3 bisco, Jun 8, 2017
    ShenmueTacos likes this.
  4. fuzzy1

    fuzzy1 Senior Member

    Joined:
    Feb 26, 2009
    17,105
    10,038
    90
    Location:
    Western Washington
    Vehicle:
    Other Hybrid
    Model:
    N/A
    There is an important election in 2018 too. It won't have an instant impact on the king, but it could well swap out the court jesters.
     
    #4 fuzzy1, Jun 8, 2017
    Son of Gloin, iplug, Trollbait and 1 other person like this.
  5. bwilson4web

    bwilson4web BMW i3 and Model 3

    Joined:
    Nov 25, 2005
    27,123
    15,389
    0
    Location:
    Huntsville AL
    Vehicle:
    2018 Tesla Model 3
    Model:
    Prime Plus
    Here is one of the critical graphs showing what happened in Georgia:
    [​IMG]
    Notice ending the Georgia subsidy impacted the Leaf more than the Tesla or modestly, the BMW i3.

    Bob Wilson
     
    #5 bwilson4web, Jun 8, 2017
  6. markabele

    markabele owner of PiP, then Leaf, then Model 3

    Joined:
    Mar 27, 2012
    5,084
    1,782
    1
    Location:
    Nebraska
    Vehicle:
    2018 Tesla Model 3
    Model:
    N/A
    This is why the vast majority of used Leaf's on sale right now (at least in the midwest) come from GA. Mine is from there. Not ideal for the battery but mine must have been housed out of the sun considering it is still 97% of full.
     
    #6 markabele, Jun 10, 2017
    bwilson4web likes this.
(You must log in or sign up to post here.)