The $7,500 electric vehicle tax credit is in danger again as Senate passes
Dec. 2nd 2017 Fred Lambert
Early this morning, the U.S. Senate passed their major tax bill after weeks
of debate and it looks like the federal tax credit for electric vehicles is
still in danger despite some changes since the original introduction of the
bill that removed the incentive.
After the House GOP bill was introduced with the removal of the $7,500
federal tax credit for electric vehicles, several Republican Senators said
that they were going to remove the proposal [
] from the Senate bill.
But another amendment on Thursday was added by Jeff Flake, a Republican
senator from Arizona, which included the languange ending the federal tax
credit for electric vehicles on December 31, 2017.
SA 1746 [
]. Mr. FLAKE submitted an amendment intended to be proposed to
amendment SA 1618 [
] proposed by Mr. McConnell (for Mr. Hatch (for himself
and Ms. Murkowski)) to the bill H.R. 1 [
], to provide for reconciliation
pursuant to titles II and V of the concurrent resolution on the budget
for fiscal year 2018; which was ordered to lie on the table; as
At the appropriate place, insert the following:
SEC. ____. TERMINATION OF CREDIT FOR NEW QUALIFIED PLUG-IN
ELECTRIC DRIVE MOTOR VEHICLES.
(a) In General.--Subpart B of part IV of subchapter A of
chapter 1 is amended by striking section 30D (and by striking
the item relating to such section in the table of sections
for such subpart).
(b) Conforming Amendments.--
(1) Section 38(b) is amended by striking paragraph (35).
(2) Section 1016(a) is amended by striking paragraph (37).
(3) Section 6501(m) is amended by striking ``30D(e)(4),''.
(c) Effective Date.--The amendments made by this section
shall apply to vehicles placed in service in taxable years
beginning after December 31, 2017.
The bill’s amendment was approved [
] on the bill that the Republican voted for in the Senate early this morning
(hat tip to rodney8 [
Now the bill is going to the House, but it’s not looking good for electric
vehicle buyers at this point.
Nothing is concrete yet, but it’s looking worse than ever for the electric
vehicle buyers. I’m not a tax expert, but it looks like there are so many
major changes in this bill that the EV tax credit is just an afterthought
seen as collateral damage.
If you were looking to buy an electric vehicle in the coming months, I would
recommend pulling the trigger right now in order not to take chances.
Last month, we posted a report on ‘How to approach buying a Tesla or any
electric car with the proposed end of $7,500 tax credit next month [
].‘ It still stands for most vehicles aside for Tesla’s custom orders, which
can’t be delivered in time at this point since vehicles need to be “placed
in service” by the end of the month.
Tesla’s new inventory vehicles can still be delivered in time and we expect
that they will go fast because the timeline for the likely end of the tax
credit also matches Tesla’s end of the free unlimited access to the
Supercharger network with a purchase through Tesla’s referral program [
] (you can use our code [
] to get the free Supercharger access).
For other electric vehicles, we also expect inventories to be limited as
people fear the end of the federal tax credit. You can check with your local
dealers for inventory: Chevy Bolt EV [
], Hyundai Ioniq Electric [
], Nissan Leaf [
] ... [© electrek.co]
Electric Vehicles: Tax Credits and Other Incentives | Department of ...
The federal government and a number of states offer financial incentives,
including tax credits, for lowering the up-front costs of plug-in electric
vehicles (also known as electric cars or EVs). The federal Internal Revenue
Service (IRS) tax credit is for $2,500 to $7,500 per new EV purchased for
use in the U.S. ...
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