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What happen when EV federal tax credit exhausted? New bill to remove the threshold

Discussion in 'Prime Main Forum (2017-2022)' started by citiprius, Jul 2, 2018.

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  1. Roy2001

    Roy2001 Active Member

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    Totally agree! It punishes pioneer and rewards sluggish auto makers.
     
  2. john1701a

    john1701a Prius Guru

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    Economics state otherwise. In fact, we now have proof of that.

    GM used their tax-credits for conquest, attracting sales from outside to sell a vehicle clearly not viable as a sustainable high-volume product that's profitable. Rather than using the money to subsidize a design to appeal to the masses, they wasted it. Why should more money be provided for the same thing?

    Volt technology should have been adapted for use in a vehicle GM customers actually want. For many years, concern about the disinterest GM had to deliver a mainstream product fell on deaf ears. Gen-1 was clearly a niche. Gen-2 should have been an effort to rectify that; instead, it became even less of a vehicle appealing to their own loyal customers. How can rewarding that be justified?

    Consider the number of Volt owners who abandoned GM when their lease expired. Consider how low the sales of Volt continue to be, even with that generous $7,500 help. Consider how little Volt actually did to change the status quo. GM sells a massive number of guzzlers and has no actual path to electrification for them.

    Meanwhile, we have Toyota being labeled as "laggard" even though their entire fleet has a clear electrification path. Prius has already been delivered as a plug-in hybrid. Next year, the Corolla hybrid will get a plug-in model too. That makes it very easy to see how Camry, RAV4, and C-HR hybrids could also offer a plug. So, why exactly is that an activity to punish?

    Think about which will do more to replace traditional vehicles with something offering plug. With millions of sales each year, we should not allow more waste. It's the ability to bring about change the tax-credits should be used for.

    Based reward on merit, not enthusiast praise. The homework assigned was to bring about real change prior to tax-credit expiration. In fact, that is the very reason why there is a phaseout stage that does not have a count limitation.
     
    #22 john1701a, Jul 8, 2018
    Last edited: Jul 8, 2018
  3. wjtracy

    wjtracy Senior Member

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    It (the tax credit policy) goes back to the Hybrid credit where Congress had no interest in subsidizing Toyota's hot selling Prius hybrids. The purpose of the hybrid credit was really to encourage automakers other than Toyota to go the hybrid route.

    In the end, the USA/world is much happier subsidizing plug-ins partially because pure hybrids is the area Toyota has locked up.

    The orig hybrid tax credit was very problematic as it forced everyone into AMT (Alternative Minimum Tax) calcs which reduced the credit for most. The Plug-in credit is much larger and much longer and much more powerful as far as letting anyone take the credit.
     
    #23 wjtracy, Jul 8, 2018
    Last edited: Jul 8, 2018
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  4. Leadfoot J. McCoalroller

    Leadfoot J. McCoalroller Senior Member

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    From my point of view, the intended first-order effect of that original credit was to sell a bunch of Toyotas. Secondary effects on the individual taxpayers were subordinate to that goal.
     
  5. RobFL

    RobFL Junior Member

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    I missed this thread when I made another post - great conversation in here!

    I still am curious - is the tax credit something that is voted on or could be repealed on a yearly basis?

    I can say that without a doubt, the combination of federal tax credit and large Toyota rebate is what has pushed me over the edge into buying a Prime. Without them - I would still be in the "one day when the prices come down" category.

    As I write this - Tesla has reached the phase-out threshold for the rebate. I'm also hearing that they are very close to making the $35K version of the Model 3 available. I can't help but think that this is strategic on their part, and combined with the America-first climate in Washington - wonder how this will affect incentives on the Prime in 2019.