what happened to the EV credits during Trump 1.0 ?
During the period of 2016 through 2020, the federal government offered a Qualified Plug-In Electric Drive Motor Vehicle Credit (IRC Section 30D) of up to $7,500 for the purchase of new, qualified electric vehicles (EVs) and plug-in hybrids.
Credit Details
Amount: The credit amount was calculated based on battery capacity, starting with a base amount of $2,500 for a vehicle with at least 5 kilowatt-hours (kWh) of battery capacity, plus an additional $417 for each kWh over 5 kWh, up to a maximum of $7,500.
Nonrefundable: The credit was nonrefundable, meaning it could reduce a taxpayer's liability to zero, but any excess amount was not paid out as a refund or carried forward to future tax years.
Purpose: The vehicle had to be purchased new for personal use (not resale) and primarily used in the U.S.
Manufacturer Sales Cap and Phase-Out
A key feature of the program during this time was the manufacturer sales cap. The credit began to phase out for a manufacturer's vehicles once it sold at least 200,000 qualifying vehicles in the U.S. (determined on a cumulative basis for sales after December 31, 2009).
Once a manufacturer hit the 200,000 vehicle cap, the credit amount was reduced over a year-long phase-out period:
First two quarters after limit reached: 50% of the full credit amount.
Second two quarters after limit reached: 25% of the full credit amount.
After phase-out: No credit was available.
During the 2016-2020 timeframe, both Tesla and General Motors reached and completed this phase-out process. As a result, by late 2019 and early 2020, vehicles from these manufacturers were no longer eligible for the federal tax credit.
but he loves Tesler...
the airline commentary... goes straight back to the OP, and it's still hilarious.
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Crnr2Crnr ·
