[Steverino]

This is great news and confirms a report by GM a week or so ago.

I was reading this on Fox where the comments section is filled with hilarious idiots as usual. Stuff like: EV's are all over US$80k, it's a conspiracy against Tesla, yadda, yada. The best one was someone warning others that you need to pay taxes to get the tax credit (heaven forbid!!) and even then, the credit is only refunding tax money you already paid (that's uh, bad?). The EV ignorance is astounding.

 

[smallb1980]

This is great news and confirms a report by GM a week or so ago.

I was reading this on Fox where the comments section is filled with hilarious idiots as usual. Stuff like: EV's are all over US$80k, it's a conspiracy against Tesla, yadda, yada. The best one was someone warning others that you need to pay taxes to get the tax credit (heaven forbid!!) and even then, the credit is only refunding tax money you already paid (that's uh, bad?). The EV ignorance is astounding.

I still get the those types of comments, like have fun replacing the battery, and when it catches fire like they all do etc. I just laugh on the ignorance and lack of knowledge.

 

[lukazojr]

Umm do people realize in 2024 it's not a Tax Credit anymore. It becomes a rebate give at Point of Sale. So the 7500 if vehicles still qualify for full credit will be taken off cost of vehicles.

 

[themadbluebird]

Umm do people realize in 2024 it's not a Tax Credit anymore. It becomes a rebate give at Point of Sale. So the 7500 if vehicles still qualify for full credit will be taken off cost of vehicles.

My understanding is that it is still a tax credit and that you still need to have at least that much tax liability, even though you will be able to receive it at time of sale.

 

[CTAPRN]

My understanding is that it is still a tax credit and that you still need to have at least that much tax liability, even though you will be able to receive it at time of sale.

Yes, still a tax credit - you just get to reap the benefit at the point of sale. It's unclear how exactly that's going to be rolled out at this point, but you still need to have $7500 of tax liability and meet the AGI limits.

 

[PSU77]

I read a Consumer Reports article that in 2024 it will be a rebate through the dealer. You won't have to have the tax liability. It will work like the credit is being applied to leases.

 

[CTAPRN]

I read a Consumer Reports article that in 2024 it will be a rebate through the dealer. You won't have to have the tax liability. It will work like the credit is being applied to leases.

Hm. I'm not sure of that. Also the AGI would have to be proven otherwise the whole point of putting limits for who can claim the tax credit becomes moot after only 1 year of implementing the IRA. I think it's a little unclear at the moment. Overall, though, it will be quicker to claim the tax credit which is all I care about haha.

 

[PSU77]

Hm. I'm not sure of that. Also the AGI would have to be proven otherwise the whole point of putting limits for who can claim the tax credit becomes moot after only 1 year of implementing the IRA. I think it's a little unclear at the moment. Overall, though, it will be quicker to claim the tax credit which is all I care about haha.

Actually I found a similar statement in this article from NPR. Here's the applicable quote:

"The government knows that nobody really wants to have to calculate their taxes a year in advance in order to figure out if they get a discount on a car or not.
And starting in 2024 you won't have to. The credit will be available as a "point-of-sale rebate," which means a car dealership would knock $7,500 off the price of the vehicle and then handle everything with the IRS. That will make it faster and just plain easier to get the credit, without having to wait for a year."

https://www.npr.org/2023/01/07/1147209505/electric-car-tax-credit-climate-bill-tesla-volkswagen-ev

 

[Steverino]

Seems like there is still confusion as to how the tax credit will work.

"To claim the credit, file Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-in Electric Vehicles) with your tax return. You will need to provide your vehicle's VIN."

See Federal Tax Credits for Plug-in Electric and Fuel Cell Electric Vehicles Purchased in 2023 or After

No way do I want to hand a car dealership my tax returns or W-2's to get the credit at point of sale. If that's what it takes I'd rather file the form myself.

 

[PSU77]

Seems like there is still confusion as to how the tax credit will work.

"To claim the credit, file Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-in Electric Vehicles) with your tax return. You will need to provide your vehicle's VIN."

See Federal Tax Credits for Plug-in Electric and Fuel Cell Electric Vehicles Purchased in 2023 or After

No way do I want to hand a car dealership my tax returns or W-2's to get the credit at point of sale. If that's what it takes I'd rather file the form myself.

There's no way you will have to do that. How can you tell them your current year gross income in the middle of the year?

 

[Steverino]

There's no way you will have to do that. How can you tell them your current year gross income in the middle of the year?

Perhaps the dealer applies the $7500 credit at sale, but you still need to file the paperwork at tax time or risk having the credit yanked back by the IRS? Just guessing.

 

[PSU77]

Perhaps the dealer applies the $7500 credit at sale, but you still need to file the paperwork at tax time or risk having the credit yanked back by the IRS? Just guessing.

That was my guess too until I read those articles. I am going to make sure at the time to read the actual rules from the IRS

 

[CTAPRN]

Perhaps the dealer applies the $7500 credit at sale, but you still need to file the paperwork at tax time or risk having the credit yanked back by the IRS? Just guessing.

That was my assumption. They probably just legally give you a script they read out of what will happen if you don't meet: $7500 of tax liability, $150,000 of AGI for single filing or $300,000 for joint filing. And if you get hit by the IRS later on, that's on you. Also, starting this year, dealers are having to file to the IRS VINs of EVs they sell that would qualify for the tax credit including the information on who purchased the vehicle. So the IRS will know you bought the vehicle, and they will see paperwork showing the $7500 off. So you just need to back it up. There will probably just be an alteration to the current Form 8936 that states (applying for tax credit OR received rebate from dealer...proving I qualify...please don't come after me haha).

 

[CTAPRN]

My guess is that they will come out with guidance on this by the end of this year or beginning of next year

 

[Evan1]

I was reading this on Fox where the comments section is filled with hilarious idiots as usual.

Fox is as creditable as CNN or other media new outlets.

 

[Lapiszx3]

edited to add quotes ⬇

 

[Lapiszx3]

Fox is as creditable as CNN or other media new outlets.

You might want to go Google “dominion lawsuit Fox News”

you will find there are about 780 billion reasons why this comment is in bad faith.

 

[Evan1]

You might want to go Google “dominion lawsuit Fox News”

you will find there are about 780 billion reasons why this comment is in bad faith.

I don't want to get political, but CNN kept pushing a certain narrative or agenda that fell on its face.
To be frank, I don't trust any media sites accept what is posted here.

 

[Steverino]

I don't any media site accept what is posted here.

lol