Getting it done

[BOHICA]

Easy way for those foreign vehicle manufactures to get around the made in America clause.  It is what happens when politicians don’t read or understand what they are voting on.

https://electrek.co/2022/12/29/cars-assembled-outside-na-may-qualify-for-ev-tax-credit-per-new-irs-note/
 

In short, for a leased vehicle, the commercial tax credit can be taken by the lessor, regardless of whether the vehicle was assembled in the US. This means dealerships can get $7,500 in tax credits for each leased EV.

This credit, then, could be passed on to the consumer in the form of reduced lease payments, as the dealership will effectively recognize an additional $7,500 in tax credit revenue from the lease of that vehicle.

[SnowRider]

Maybe a Repug legislator can propose legislation to fix the issue…..

Edited December 30, 2022 by SnowRider

[toslow]

4 minutes ago, SnowRider said:

Maybe a Repug legislator can propose legislation to fix the issue…..

maybe they replace the burnt fuse

[BOHICA]

7 minutes ago, SnowRider said:

Maybe a Repug legislator can propose legislation to fix the issue…..

Machin did.  Suggest we pause the implementation of it as that wasn’t suppose to be the intention of the bill…. But the law is the law.  If it’s fucked up not much we can do about it until it expires in 10 years.

Edited December 30, 2022 by BOHICA

[racer254]

Just another reason to stay away from electric vehicles.

Edited December 30, 2022 by racer254

[racer254]

Remember which party gave this money away to foreign companies.  The bill that caused this was passed solely by democrats.

[BOHICA]

38 minutes ago, racer254 said:

Remember which party gave this money away to foreign companies.  The bill that caused this was passed solely by democrats.

Actually it all started with Republican.  George Bush actually.  This just expands on what Republicans started…..

[racer254]

10 minutes ago, BOHICA said:

Actually it all started with Republican.  George Bush actually.  This just expands on what Republicans started…..

The change that allowed this was in the Inflation reduction act,

The US Treasury has released new guidelines on the electric vehicle tax credit in the Inflation Reduction Act, which seem to suggest that leased vehicles can qualify for the EV tax credit even if they were assembled outside of North America, Reuters reports.

The Inflation Reduction Act significantly changed the way the EV tax credit works, and among those changes was a requirement that cars undergo final assembly in North America in order to qualify

 

[BOHICA]

4 minutes ago, racer254 said:

The change that allowed this was in the Inflation reduction act,

The US Treasury has released new guidelines on the electric vehicle tax credit in the Inflation Reduction Act, which seem to suggest that leased vehicles can qualify for the EV tax credit even if they were assembled outside of North America, Reuters reports.

The Inflation Reduction Act significantly changed the way the EV tax credit works, and among those changes was a requirement that cars undergo final assembly in North America in order to qualify

 

Lease worked the same way as the George bush/Republican EV plan.  Lease companies always got the tax credit under the old George Bush plan.  This is nothing more then an extension of the Republican tax credits with some additional stipulations such as income limits and msrp limits.

[BOHICA]

8 minutes ago, racer254 said:

The change that allowed this was in the Inflation reduction act,

The US Treasury has released new guidelines on the electric vehicle tax credit in the Inflation Reduction Act, which seem to suggest that leased vehicles can qualify for the EV tax credit even if they were assembled outside of North America, Reuters reports.

The Inflation Reduction Act significantly changed the way the EV tax credit works, and among those changes was a requirement that cars undergo final assembly in North America in order to qualify

 

From the OP link.

 

The “old” tax credit worked similarly on leased vehicles, which was one way that low-income taxpayers could get around the limitation that the credit was not refundable, which means that anyone with less than $7,500 in federal tax liability couldn’t benefit from the full credit.

This is also why there have been many EV lease deals in the past, with vehicles like the Nissan Leaf and Fiat 500e, each with MSRP around $30k, leasing for $99/mo or less (as opposed to the expected approximate $300 per month for a $30k car), as dealers could recognize tax credits to effectively reduce the price of those vehicles. Those deals no longer exist in this production-constrained and high-demand EV sales environment, though similar deals may return if the market ever flattens out.

 

[racer254]

1 hour ago, BOHICA said:

From the OP link.

 

The “old” tax credit worked similarly on leased vehicles, which was one way that low-income taxpayers could get around the limitation that the credit was not refundable, which means that anyone with less than $7,500 in federal tax liability couldn’t benefit from the full credit.

This is also why there have been many EV lease deals in the past, with vehicles like the Nissan Leaf and Fiat 500e, each with MSRP around $30k, leasing for $99/mo or less (as opposed to the expected approximate $300 per month for a $30k car), as dealers could recognize tax credits to effectively reduce the price of those vehicles. Those deals no longer exist in this production-constrained and high-demand EV sales environment, though similar deals may return if the market ever flattens out.

 

But previously the vehicles had to be assembled in North America.  Now they don't have to be. 

[BOHICA]

9 minutes ago, racer254 said:

But previously the vehicles had to be assembled in North America.  Now they don't have to be. 

Incorrect…. George Bush/Republican EV policy gave tax credits to individuals and lease companies on 100% foreign made EV’s

[f7ben]

[racer254]

42 minutes ago, BOHICA said:

Incorrect…. George Bush/Republican EV policy gave tax credits to individuals and lease companies on 100% foreign made EV’s

The article says right in it that the Inflation Reduction Act changed it. I am not arguing, just stating what it says.

The US Treasury has released new guidelines on the electric vehicle tax credit in the Inflation Reduction Act, which seem to suggest that leased vehicles can qualify for the EV tax credit even if they were assembled outside of North America, Reuters reports.

The Inflation Reduction Act significantly changed the way the EV tax credit works, and among those changes was a requirement that cars undergo final assembly in North America in order to qualify. The intent of this section is to bring EV manufacturing to the US in order to give the country a leg up in the future of the auto industry.

Edited December 30, 2022 by racer254

[BOHICA]

1 minute ago, racer254 said:

The article says right in it that the Inflation Reduction Act changed it. I am not arguing, just stating what it says.

The US Treasury has released new guidelines on the electric vehicle tax credit in the Inflation Reduction Act, which seem to suggest that leased vehicles can qualify for the EV tax credit even if they were assembled outside of North America, Reuters reports.

The Inflation Reduction Act significantly changed the way the EV tax credit works, and among those changes was a requirement that cars undergo final assembly in North America in order to qualify. The intent of this section is to bring EV manufacturing to the US in order to give the country a leg up in the future of the auto industry.

No it doesn’t.  Reading comprehension is important skill you need to work on.

[racer254]

4 minutes ago, BOHICA said:

No it doesn’t.  Reading comprehension is important skill you need to work on.

???? How did you interpret this?

[BOHICA]

10 minutes ago, racer254 said:

???? How did you interpret this?

Yes…. the inflation reduction act changed the way in the fact that  cars must go undergo final production in the US in order to qualify for tax credit which is different from the old Republican plan that was in effect.   They more or less left the lease/commercial portion as was from the existing Republican EV act in the new inflation reduction act 
 

That is indeed a change from the Republican/George Bushes original act which allowed 100% foreign manufactured vehicles that got credits.  Like Kia EV’s, Hyundai ev’s vw ID 4, bmw i4’s, jaguar I paces, Porsche taycans and such.  All which are made on foreign shores but got tax credits on US sales and leases under the old Republican plan.

 

 

Edited December 30, 2022 by BOHICA