4xe - $12,500 proposed tax credit stopped my purchase

SteveTigers

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Are there any others out there that stopped their plans to buy a 4xe because of the proposed increase in the electric vehicle credit? The proposed legislation is currently written to increase the credit from $7.5k to $12.5k for purchases after 1-1-22. I can’t get past the potential of an instant $5,000 loss in value.
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Windshieldfarmer

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I just sold my Tesla Model 3 because I am concerned resale will tank if renewed or increase tax credits are approved. That said I’m not sure the recommendation that came out of the split senate committee will be approved as proposed. I am guessing it will be slightly more than $7,500 but less than $12,500. The extra $2,500 for Union produced EVs will be a deal breaker for republicans.
 

sentience

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Definitely.

Might get a better deal too. I was able to buy mine 5% under invoice in March, delivered in April. Since then, they have raised prices by 1.8k, and the dealer I bought from no longer offers under invoice pricing (Koons).

Even if you were able to purchase now, you would still likely see added wait time due to the current chip shortage. Not to mention, additional features or improvements in the 2022 models (wishlist - HUD)
 

asuperheat

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Don't worry they have to do it to create a market for them so wait and get the better deal. Its the only way to get to the goal of 50 percent EV's. You have to get people OK with buying them. When people wont buy them on their own you have to subsidize them. Heck when the Obama admin was in office I got 4500 tax credit for a LSV ( Golf Cart ) but I still have a 392 on order and see it as more fuel for me lol!

Don't worry guy's they do a lot worse with the tax money than subsidize jeeps.
 

Rangemaster

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I personally think, they will bake that $5k into that jeep by next year. So buying it now might be cheaper then waiting.
 

SH556JL

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Don’t get too upset. There are plenty of tax benefits for high tax bracket folks most Americans don’t get: mortgage interest deductions on vacation homes, 401k tax deferrals, HSA triple tax free benefits, and lower tax rates on carried interest, qualified dividends and LT capital gains. Makes a $7500 credit for an EV seem like small potatoes IMO.
My income isn’t actually that high and a lot of these also benefit the middle class. My modest income, albeit getting into upper middle class at this point. My taxes are high because I have zero dependence (not married, no kids) and don’t own a home. I pay just as much as my parents who have about twice my income. I’m not upset, I’m thankful to have this problem. I can recall being so poor I had a negative tax rate...

This is the main problem I have with Tax Credits like this. It doesn’t have any impact on lower incomes. We need to treat this more like the Earned Income Tax Credit that gets paid no matter what the persons income. Better yet, this should be treated more like a rebate that is paid directly to the dealer so the discount can be applied directly to financing.

I’ve got a reservation in for an F150 Lightning. I haven’t made up my mind on whether or not I’m going to buy one but, with this bill‘s passing, I’d be able to get $15000 in tax credits due to Colorado’s $2500 credit.
Earned Income Tax Credit phases out really quick as your income increases. I haven’t received it since dropping out of college...

But the F150 Lightning is the truck I am interested in the most if I decide to go electric. I wouldn’t buy any of these electric or PHIV without them being heavily subsidized.
 
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BlueBump

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Some of these new higher EV credit proposals have income phase out. It’s all tbd but I envision a possible scenario where a higher income doesn’t qualify for the benefit and then you missed out on this years 7500 if they replace it with a higher but more stringent one next year. That would be the worst situation. .
 

aldo98229

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The extra $2,500 for Union produced EVs will be a deal breaker for republicans.
A lot of people have a problem with the union-produced extra credit, not just Republicans.

Toyota, Honda, Mercedes and BMW produce automobiles in non-unionized US plants; many for export markets.
 

MonLee

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I don't think EVs can take over 50% market share with li-ion batteries. They make sense for a lot of people but no where near a majority of us as they stand right now.
 

Windshieldfarmer

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In other news, Jeep plans to increase the price of the 4xe by $5000 on 1/1/2022.
That’s the problem with these stupid programs…manufacturer’s will just raise prices….Congress isn’t smart enough to plan for that issue….
 
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Rock Krawler
 
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