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US tax credits and the pending bill [Warning: NO POLITICS]

john adams

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(Cross posted this elsewhere on the internet but I thought others might want to pick this apart)

tl;dr. If you make less than $400,000, and order a 4xe that costs less than 69K, you would get $8,500 (or $9,000) if this passes.

Correct me if I'm wrong. The current house bill due for a vote and pre-reconcilation is here and the consumer credit discussion begins at page 1240, though by all means read the entire thing. I apologize for the formatting. Blame Congress.

The way I read it, the 4xe qualifies for (these items are additive):

(2) BASE AMOUNT.—The amount determined under this paragraph is $4,000. YES=$4000

(3) BATTERY CAPACITY.—In the case of a new
qualified plug-in electric drive motor vehicle, the
amount determined under this paragraph is $3,500
if—
(A) in the case of a vehicle placed in service before January 1, 2027, such vehicle draws
propulsion energy from a battery with not less
than 40 kilowatt hours of capacity and has a
gasoline tank capacity not greater than 2.5 gallons, and
(B) in the case of a vehicle placed in service after December 31, 2026, such vehicle
draws propulsion energy from a battery with
not less than 50 kilowatt hours of capacity and
has a gasoline tank capacity not greater than
2.5 gallons.
NO = gas tank more than 2.5G, also battery capacity is only 17.3 kWh.

(4) DOMESTIC ASSEMBLY.—In the case of a
new qualified electric drive plug-in vehicle which satisfies the domestic assembly qualifications, the
amount determined under this paragraph is $4,500. Assume yes = $4,500.

(5) DOMESTIC CONTENT.—In the case of a
new qualified electric drive plug-in vehicle which satisfies domestic content qualifications, the amount determined under this paragraph is $500.

-----Later definition: (2) DOMESTIC CONTENT QUALIFICATIONS.—
The term ‘domestic content qualifications’ means,
with respect to any model of a new qualified plug-
in electric vehicle, that vehicles of that model are
powered by battery cells which are manufactured in
the United States as certified by the manufacturer
at such time and in such form and manner as the
Secretary may prescribe

Don't know = ???

----Limitations

Then there is an income limitation. If you make less than $400,000, this does not apply but take a look if you make more than that.

Then there is a price limitation, which in short says if your vehicle is more than 69K, no credits at all (Rubicons and HAs can go above this so talk to your dealer as you build and make sure the price works) :

(1) IN GENERAL.—No credit shall be allowed
under subsection (a) for a vehicle with a manufac
turer’s suggested retail price in excess of the appli
cable limitation.

(2) APPLICABLE LIMITATION.—For purposes
of paragraph (1), the applicable limitation for each
vehicle classification is as follows:

(B) SPORT UTILITY VEHICLES.—In the
24 case of a sport utility vehicle, $69,000.


tl;dr. If you make less than $400,000, and order a 4xe that costs less than 69K, you would get $8,500 (or $9,000) if this passes.

This page has a good summary of the two bills pending and that need reconcilation. It's Tesla biased but you get the gist.
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DHW

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Legit question - Why does every thread that has a somewhat political topic get shutdown completely? This a valid discussion that involves Jeeps and political issues, but I'm sure this thread will be dead within a half hour. I've seen political discussions on here get spirited, but nothing I thought was over any line. A while back I made a totally humor-based post about Biden bragging about his planned 4xe mods and it got deleted too. Seems it goes a bit far sometimes.

BTW here is Biden showing you what size tires he is planning on installing:
Jeep Wrangler JL US tax credits and the pending bill [Warning: NO POLITICS] 1635453080023


And here is Biden indicating the height of the lift he wants:
Jeep Wrangler JL US tax credits and the pending bill [Warning: NO POLITICS] 1635454540770


And here is Biden showing you youngsters how navigation worked "in his day":
Jeep Wrangler JL US tax credits and the pending bill [Warning: NO POLITICS] 1635870520530
 
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2nd 392

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Either give a tax credit or not without regard to domestic, foreign, union, not union, vehicle price, income level, gas tank size, battery size, range or other political considerations
 

blueweb

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Debating if I should wait until 2022 4xe, or just go buy a 2021 next week
 

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RidgebackWrangler

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The problem ive been finding in CA is most of the dealers at marking up 10K because that is about the amount in total of all the rebates you get back. You have to buy it in CA if you want some of the CA specific rebates.
 

sethz

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(Cross posted this elsewhere on the internet but I thought others might want to pick this apart)

tl;dr. If you make less than $400,000, and order a 4xe that costs less than 69K, you would get $8,500 (or $9,000) if this passes.

Correct me if I'm wrong. The current house bill due for a vote and pre-reconcilation is here and the consumer credit discussion begins at page 1240, though by all means read the entire thing. I apologize for the formatting. Blame Congress.

The way I read it, the 4xe qualifies for (these items are additive):

(2) BASE AMOUNT.—The amount determined under this paragraph is $4,000. YES=$4000

(3) BATTERY CAPACITY.—In the case of a new
qualified plug-in electric drive motor vehicle, the
amount determined under this paragraph is $3,500
if—
(A) in the case of a vehicle placed in service before January 1, 2027, such vehicle draws
propulsion energy from a battery with not less
than 40 kilowatt hours of capacity and has a
gasoline tank capacity not greater than 2.5 gallons, and
(B) in the case of a vehicle placed in service after December 31, 2026, such vehicle
draws propulsion energy from a battery with
not less than 50 kilowatt hours of capacity and
has a gasoline tank capacity not greater than
2.5 gallons.
NO = gas tank more than 2.5G, also battery capacity is only 17.3 kWh.

(4) DOMESTIC ASSEMBLY.—In the case of a
new qualified electric drive plug-in vehicle which satisfies the domestic assembly qualifications, the
amount determined under this paragraph is $4,500. Assume yes = $4,500.

(5) DOMESTIC CONTENT.—In the case of a
new qualified electric drive plug-in vehicle which satisfies domestic content qualifications, the amount determined under this paragraph is $500.

-----Later definition: (2) DOMESTIC CONTENT QUALIFICATIONS.—
The term ‘domestic content qualifications’ means,
with respect to any model of a new qualified plug-
in electric vehicle, that vehicles of that model are
powered by battery cells which are manufactured in
the United States as certified by the manufacturer
at such time and in such form and manner as the
Secretary may prescribe

Don't know = ???

----Limitations

Then there is an income limitation. If you make less than $400,000, this does not apply but take a look if you make more than that.

Then there is a price limitation, which in short says if your vehicle is more than 69K, no credits at all (Rubicons and HAs can go above this so talk to your dealer as you build and make sure the price works) :

(1) IN GENERAL.—No credit shall be allowed
under subsection (a) for a vehicle with a manufac
turer’s suggested retail price in excess of the appli
cable limitation.

(2) APPLICABLE LIMITATION.—For purposes
of paragraph (1), the applicable limitation for each
vehicle classification is as follows:

(B) SPORT UTILITY VEHICLES.—In the
24 case of a sport utility vehicle, $69,000.


tl;dr. If you make less than $400,000, and order a 4xe that costs less than 69K, you would get $8,500 (or $9,000) if this passes.

This page has a good summary of the two bills pending and that need reconcilation. It's Tesla biased but you get the gist.
Thanks dude for doing the heavy lifting for us. Couldn;t thank you enough ! That said, i am a little curious as to how they arrived at the very odd price cap of $69K 🤔. It could have been $65K or 70K. Why 69 ???
 
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OP

john adams

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I see what you mean. N
Thanks dude for doing the heavy lifting for us. Couldn;t thank you enough ! That said, i am a little curious as to how they arrived at the very odd price cap of $69K 🤔. It could have been $65K or 70K. Why 69 ???
Beavis and Butthead drafted that provision.
 

2nd 392

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Left out donors, corporate contributions etc
 

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michail

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Hmm, yes. The market should take care of extremes in prices and income levels.

The market for an $800K electric super car is so small a tax credit wouldn't even be a concern for whoever was purchasing.

The American political parties are more interested in harming the other party than they are doing what's in the country's interests. Each party has good people but they aren't allowed to do the right thing.

I'll go back to my earlier statement that it's human psychology. It's no different than sports teams. It's like drunk Patriots and Eagles fans trying to kill each other. But they both like football.
 
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jhav

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Patriots and Eagles fans??? I mean, I'd accept an example of Giants and Eagles fans, Cowboys and Eagles fans, heck - SF Giants and Dodgers fans who actually have killed each other. The Eagles and Pats play but once every 4 years.... not much of a fan-base rivalry there.

There was this one game in Minneapolis on 2/4/18. I was there and can say with certainty that there were no fights, only celebrations (and some tears)! 41-33 GO BIRDS!!!

Sorry - back to politics... err... Jeep convo ;-)
 

ReimundKrohn

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If you want to grow a market for EVs, how about letting tax payers keep more of their money instead of handing it out to “help” foster EVs when the grid can’t support a sizeable population of them and energy costs are only going up (and up and up). If the government got out of the “mandate” business and just allowed markets to respond to consumer demand naturally, we could see genuine, sustainable progress. Honestly, I don’t care what side of the political aisle you are on; they’re both corrupt to the core and only interested in acquiring more and more power.
 

rent

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Just to clarify, the income thresholds are (page 1242):

(A) $800,000 married file jointly or surviving spouse
(B) $600,000 head of household
(C) $400,000 otherwise (single, married file separately)

If your modified adjusted gross income for current year (the year you purchase the vehicle) or the preceding year, whichever is less, exceeds the threshold amount, then the amount of allowable credit is reduced by $200 for every $1000 that exceeds the threshold.

In other words, the allowable credit starts to phase out once your income exceeds the threshold. It is not a no-credit-if-exceeds-by-$1 scenario.

The vehicle price limitation is a hard number: $69,000.
 

AVGeek99

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