Plug In America Responds To Republican Effort to End EV Tax Credit

NOV 3 2017 BY TOM MOLOUGHNEY 62

Plug In America took little time to respond to the Republican-sponsored House Bill introduced Thursday which if passed, would bring an abrupt end to the Federal Tax credit for electric vehicles as of December 31st, 2017.

Katherine Stainken, PIA’s Policy Director posted an action alert on their website, calling for all interested individuals to send a message of disapproval to their elected officials. It’s very easy to do, and takes less than a minute, since all you need to do is enter your address so they can determine who your representatives are, then enter your name, email address and telephone number. Then just click send and the email gets sent to your appropriate Representatives.

The body of the email is already written, but you are welcome to modify it if you’d like. If you don’t modify it, here’s what will be sent:

Dear Legislator,

I’m writing to you to express my full support for electric vehicles (EVs), and to urge you to leave the EV tax credit under Section 30D alone. Repealing the credit under H.R. 1 would have a devastating effect on the EV industry, and would affect hundreds of thousands of workers in the auto industry and the electric utility industry who are manufacturing the vehicles and preparing for greater adoption of EVs throughout the country.

Repealing the Section 30D tax credit will also hurt constituents like me. This federal tax credit is a key incentive that helps drivers make the switch to driving electric. EVs provide a multitude of benefits that accrue to all citizens too, such as promoting jobs, technology and innovation, reducing air pollution, and promoting national security by heavily reducing our reliance on foreign oil, since these vehicles are powered mainly by domestic, locally-sourced electricity.

Moreover, repealing the Section 30D tax credit essentially hands the leadership in this sector to China, who is moving aggressively towards deployment of these vehicles. The current EV industry is biased towards American manufacturing. Major automakers (General Motors, Ford, Nissan, Tesla, BMW, Kia, and more) manufacture these vehicles in the U.S. today – a stark difference to the manufacturing of gas-powered cars. Repealing the Section 30D EV tax credit will slow adoption of the vehicles, which will slow production of the cars in the U.S, hurting jobs.

This credit already has a cap on when it will expire – when each automaker has sold 200,000 EVs. There’s absolutely no need to end the credit now. I urge you to leave the Section 30D EV tax credit alone.

Thank you.

Respectfully,

It’s important to let your representatives know how you feel about this very important policy change that they are trying to implement.  Electric vehicles are just now beginning to really gain momentum, and the loss of this important tax credit will certainly slow down the transition to plug-ins.

The tax credit will need to eventually end, but personally I believe this isn’t the right time just yet. General Motors and Tesla are already only a couple months from beginning their phase out period, but other automakers like Ford, Daimler, Chrysler, Volkswagen, et al, still have a long way to go, and ending the tax credit now will severely their ability to place competitively-priced plug-in cars in customer hands. We’ve mandated zero emission vehicles, and now that the OEMs are bringing them to market, this Bill will make them much harder to sell.

We’re probably only three to five years from cost parity between electric cars and their conventionally-fueled counterparts. Once that happens the tax credits and other forms of incentives will no longer be necessary. However, we’re just not quite there just yet, and these incentives play a major role in facilitating the transition to cleaner, domestically-fueled electric cars.

Follow the link below if you’d like to complete the Plug In America Call to Action, and let your Representatives know you do not want them to vote to kill the EV federal tax credit.

Plug In America Call To Action – Tell your Representatives not to end the EV tax credit!

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62 Comments on "Plug In America Responds To Republican Effort to End EV Tax Credit"

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This seems like the wrong battle to fight. The credits will expire soon for the real manufacturers. Why bother fighting to keep them in place for the manufacturers who have ignored EVs for the last ten years? No point rewarding them for their irresponsibility.

For me the answer is i won’t be able to afford the Model 3 for which I currently have a reservation if it costs $7500 more than I originally had planned for.

You must have a very early reservation, and live in CA, and own a Tesla, if you expect to get an M3 before the credits expire.

I was one of the first in line on that morning.

Tesla will have around 50,000 units to sell with the full credit by the end of the year. If they continue to sell 25k MS and MX total in Q1 2018 then that leaves 25K M3s.

So yes, I might have a shot at the full credit. But if not I would certainly have gotten some amount of credit with the phase out. If this tax plan passes practically nobody gets one.

philip d:
Are you sure line 56 on your IRS form 1040 has 7,500 or more? This credit can’t be carried over to next tax year.

Tesla may or may not find leasing partners to use this income credit, and it can’t just use it itself as it has no income, just losses.

Yes I have the tax liability. But I have a house mortgage, a child and school to save for, my student loans and my spouse’s student loans still being paid off, retirement to save for etc. I can’t afford to pay $700 a month for one car. Even with the credit it is going to be ~$500 a month.

Boo hoo!

Buy a Leaf, or wait a couple years for a used Model 3.

I already lease an i3 and have a Volt. I want a long range EV and leave gas behind forever.

At the end of the i3 lease we will probably buy a used i3 since they are down into the $18,000 range now. Then we will have one car that is a short range EV which is fine for day to day driving and one long range EV for out of town trips.

So yes, Boo hoo I am pissed at the dickheads in Congress that are attempting to kill this credit in one month without any phaseout. This doesn’t give the automakers or customers any time to adjust and is clearly intended to be punitive.

If the tax-credit ends up expiring on 12/31/17, Model 3 reservations will bleed. That amount of money has to offset preference, for a lot of people.

I think killing it Dec 2018 would be a reasonable compromise if one needed to be reached…

But I don’t think this will get through the senate as is. Too many potential obstacles to the bill from all angles for a multitude of reasons.

Technically possible. But unlikely.

I agree, Wade. This bill has a very small chance of surviving in the Senate. Right now the only thing keeping the political classes from enacting horrendous legislation from both the right and left is sequestration and gridlock.

CCIE:
These “real manufacturers” are still going to receive (yes indirectly) some billion or few of hard earned taxpayer money during phase-out period that doesn’t have vehicle count limit.

A billion here, a billion there, pretty soon, you’re talking real money! 😉

Not to mention the CARB subsidies and state incentives.

What’s your point?

EV production would probably collapse without the CARB mandate. It won’t collapse when the federal or state tax credits expires because manufacturers need to sell EVs to meet CARB requirements. I don’t care if that means they have to temporarily sell EVs at a loss to move them. Eventually tech advances and economies of scale will make them profitable.

Yes this may be a good thing for the rest of the world, as demand for EV’s in the USA is lower the rest of us can get our Tesla’s sooner. It may also make GM rethink its export of the Volt and Bolt.

Yanking the credit with 2 months to go in the 2017 tax year is what I have a problem with. At give consumers, OEMs, and suppliers a one year notice, so that they can make product/financial plans accordingly.

I agree, that the credit probably is keeping EV prices from dropping as much and it has certainly hurt the resale value of early PHEVs and EVs.

Because the Oil Industry gets 25 TIMEs more tax credit help then the EV, Solar and Wind industries combined.

Because, this helps a little bit, to level the playing field.
Or, you could get Repubs to drop the special tax rules helping Frackers: 24. 24 SPECIAL Tax Code advantages.

LOL.
Good Luck.

Elections have consequences welcome to TRUMPLAND

Trumpland ///turn the clock back 60 yrs . Let the polluting commence , Again!

Yes. Where we take less money from some people, to give it to other people.

LOL you really believe that? The truth is the wealthy keep more of their money regardless of it is earned or given to them in the form of tax loopholes, tax avoidance instruments, off shore accounts etc… Now if you’re wealthy I see your point but if you’re working class you’re a fool LOL

I think JayTee was being funny, possibly referring to the scoring that lets tax-reform result in 1.5 trillion less tax revenue, or a net-cost as a result of existing programs.

“Wealthy people” is a needle that’s moving up. Small businesses have shares and salaried compensation, in different combinations. Dropping corp and S-corp rates to 20% increases net shareholder income, versus net salary income (staying at 39.6%). Among the limited people fortunate to be in either position, there is a very different outcome from this proposal. “Wealthy” becomes the share-owner, where I imagine a lot of high-salaried Republicans thinking themselves as “Rich” are going to appreciate they weren’t invited to the Plutocrat’s Ball.

JayTee is a notorious troll from another green car site.

Yes, he is not “being funny” but is dead serious in his trolling.

Repubs: Bad for Business.
1) Coal Never Coming Back.
2) We Lose Solar and Wind industry to CHINA.

So, we lose Coal, AND we lose the new jobs to China.
Yes, voting for stupid is going to hurt.

Wrong way to approach this.
Don’t make it binary.

Offer a reasonable compromise. Reuse the sensible phaseout period in the current legislation.

Perhaps phase it out for the industry once the first manufacturer gets to 200k units.

Just don’t make it binary. Average joe doesn’t buy new cars they buy used cars. $7500 tax back to a tesla buyer became a kick in the guts to average american.

Agree 100%. The 200,000 threshold will be hit very soon by Tesla / GM. Then just run the phase-out for everyone at that time then I don’t believe many people would be that upset.

I’m fighting it for my own wallet!

One small consolation is that we now have more affordable used EVs.

People will have to buy EVs now not because they are “getting a deal” but because EVs are better. Think I am OK with that.

actually the price of used EV’s will go up. The majority of the 7500 fed incentive has been passed through to 2nd owners because there is no reason to buy a used car for the same price as you can get a new one with incentive.

That means a gently used EV has to be lower in price than a new EV minus fed and state incentives. This filters straight down the line of older used EVs with more miles, because they have to be cheaper than a newer low mile EV.

Removing the incentives removes the pressure on used prices, and they will all go up.

Still, the used EVs are more affordable than new. Back in, say 2012, there weren’t many used ones and the new ones were over $40k before incentives. It is not the end of days.

We should continue this discussion in 4 years and see where used Model 3 prices are. Used Model Ses held their value after 3 years with only a couple of thousand drop even after accounting for subtracting the tax incentive off the original purchase price.

It may be different for the M3 but I wouldn’t be surprised if there will be very little depreciation if they are still trying to meet demand in 4 years for new sales.

Especially if the tax incentive is gone even for the first run and people are buying them full price.

I have been looking at what my 2013 base Volt is worth on Cars dot com for a couple years. In 2015 it dropped from $15k to $13k. In 2016 it hovered around $12k. Yesterday it looked like it was around $13k.
My Volt is just one data point, but it is possible that the relatively steep drop off in used electric car values due to the downward effects of the tax credit may be encountering an opposite force pushing used plug in prices back up. That force is the real value that these electric cars bring to the table. Electric cars seem to be aging better than the equivalent ICE vehicle.

EVs ARE better, but without the incentive, the average American will never be able to make that determination. EVs won’t be factored into their purchases decisions, based on price alone.

We all need this for the planet !

Yes, disappointing that so many commenters don’t mention this (I.e. Global warming is a BIG problem that needs to be fought hard).

Global Warming is Catastrophic.

So, too, is our outrageous population growth.
And the simple fix is: Education.
Good schools to keep girls in school till college drops the population growth rate and starts to solve the problem.

We may have to go back to 3.5 billion humans on the planet.
Because there’s no way in Heck we can support 7 Billion.

I sent my letters, but living in Seattle they are going to representative who will not be voting for this bill no matter what.

I would be disappointed if this passes as is because it will have a disastrous effect on EV sales in January. It may cause some vehicles to be pulled from the market.

I’m on the other end. I signed it but it will be going to representatives who will be voting FOR this no matter what.

Whatever happens states will find a way to get more out of EV owners. With the twerp in the WH, this nation is already going down the drain,

The electrification of cars has not yet got to the point where it can compete with IE cars, so i would like subsidies to stay for a while, no doubt, China will win the electrification of the car race, there government know that this is a investment in the future. if you want to remove subsidies, take it from wind turbines, they needed it 25 years ago when i bought my first shares in DK, but now it is the cheapest way to make electricity

I am actually excited for the $7500 tax credit to end. The prices on new EVs are inflated and they will adjust after this credit sunsets or is killed. The credit has slowed down the adoption of these great cars because the sticker shock when you first look at them. Thinking about the Bolt here…there is a monstrous psychological difference between 42k and 35k. People see and remember the 42k not the 35k.
The fight is over for EVs. EVs have won and the momentum will not be stopped. The EV will win on its own merit and no help is required. Now it is simply a matter of time…

You do realize that people will still see $42K, not $35K. If subsidy is cut, they will always see $42K instead of some people being able to see $35K.

My point is that when the subsidy disappears so will the inflated price. That is especially true now that these cars are getting cheaper to build due to the battery costs. I am saying there is some manufacturer greed going on and at this point the subsidy is a hindrance to EVs.

EVs haven’t won.

I didn’t get a Leaf in 2012 because I’m a tree-hugger (I’m not); I got it because I wanted lower cost of ownership and the unique driving experience, along with lower maintenance.

But the final straw was the Federal subsidy; without it, I wouldn’t have gotten the car.

Today, I’d still prefer to get another EV, and the subsidy will mean a lot.

I don’t know how you think EV prices are inflated – they are not. Mfrs like GM, Ford, and FCA would be producing a lot more EVs if they thought they could make money on them.

Tesla produces EVs because it wants to; others produce EVs because they *have* to.

In 2012 and 2013 when you bought your Leaf you took advantage of the credit (as did I). I am saying now in 2017 it is no longer needed and they can produce these cars at a much lower price but that is not reflected in the new car prices and that is my rub. Sure you can get a better battery at a slightly lower price but only very slightly. Why not make more and sell them at the better margin? Dealerships for BMW, Nissan, and GM can’t sell their products because they don’t want to and they don’t understand them. I’ve talked to salesmen/women at all 3 and none of them knew what they were talking about. Not one. From the manufacturers perspective why would you sell 1 at $10 when you can sell 5 at $8. When the sticker price is FORCED to drop the car will sell because sticker shock will no longer be an issue. The EVs have won. Seems everyday there are headlines of billions of dollars in R&D going to EVs from manufacturers with numerous new models coming in 2019 and 2020. They see the writing on the wall. R&D in a big… Read more »

It won’t pass, the tax bill that is. With only 10 working days left in Congress, is it actually work, no tax bill will get passed, this year.

Actually, I would rather that we stopped ALL deductions/breaks/Xmptions.
And then tax everything on the same progressive scale.
Finally, add to that, increasing gas/diesel tax by .01/gal / month, for 48 months and for that to be invested into our infrastructure.

This is far better than subsidizing everything.