How Waymo May Limit Consumer Tax Credits On Chrysler Pacifica Hybrid

Waymo Chrysler Pacifica Hybrid

JUN 22 2018 BY STEVEN LOVEDAY 6

Waymo may purchase as many as 62,000 Chrysler Pacifica Hybrids, which will account for $465 million in federal EV tax credits.

Whether or not Waymo chooses to claim the tax credits, every Pacifica Hybrid the company purchases will count against FCA’s 200,000 credits. The automaker is far behind others, but still, 62k is a huge chunk.

FCA is one of many companies that has dragged its feet and could take advantage of the credit well beyond the time that major competitors run out. Some people feel that this is unfair since early adopters are inadvertently being punished and it may be the reason that automakers are holding out. Nonetheless, while the timing may be different, in the end, every automaker receives the same amount of credits. Senior research director at Navigant, John Gartner told Jalopnik:

Vehicle sales would apply to the 200,000 cap, which I believe Chrysler FCA is still well under at the moment given their limited PEV sales in the US.

 

Large volume purchases help OEMs move toward economies of scale, which grows the market and creates benefits for all EV consumers.

 

Corporations or individuals can receive the credits; only government agencies are not eligible.

It’s assumed that Waymo would be able to qualify for the credits since the company isn’t likely generating any revenue at this point. However, there is a large group of people advocating against the credit, so if the company accepts all the credits, it could receive stiff opposition in the mainstream media.

There’s a belief among some that the government shouldn’t be subsidizing something that makes up such a small percentage of the overall vehicle market share. This is aside from the fact that the point of the credit it to motivate adoption. Not to mention the ridiculous level of support the U.S. government affords toward oil.

Being that Waymo has said “up to 62,000” over the course of three years, this may really have little impact. The company may not ever hit the full 62k, and even if it does, it’s only some 20k per year. In terms of FCA’s stance, the Pacifica Hybrid is not exactly selling like hotcakes, so getting as many into Waymo’s hands as possible is a huge deal. However, we also know that Waymo is considering other vehicles. In fact, it just announced a deal with Jaguar for up to 20,000 I-Pace crossovers.

Neither Waymo nor FCA have commented on the situation. FCA U.S. spokeswoman Dianna Gutierrez said (via Jalopnik):

We are not disclosing any financial details. Thank you.

Source: Jalopnik

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6 Comments on "How Waymo May Limit Consumer Tax Credits On Chrysler Pacifica Hybrid"

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Never really put much thought into the fact a single corporation could gobble up a huge chunk of 1 manufacturer’s tax credits. I don’t think that’s really in the spirit of the law that created the $7,500 tax credit.
They really need to overhaul the tax credit system. But with the current administration, that is likely just a pipe dream. Only a few months away till the first manufacturer hits the 200k cap.

Does anybody know what is happening to all of those XC90 T8s that Uber bought, modified, and is now stopping use of? Are they going to sell the things?

Waymo doesn’t even make a profit hence they have no tax liability hence they can’t even use the tax credit.

Isn’t the tax credit for personal use only anyway ? I recently read you have to have at least 60% personal use to be able to claim it, which private people doing rideshare need to be aware of. So how is this an issue here ?

https://www.irs.gov/pub/irs-pdf/f8936.pdf is the form and apparantly it does split out personal use from ‘Qualified plug-in electric drive motor vehicle credit from partnerships and S
corporations’ to be reported separately. Instructions: https://www.irs.gov/pub/irs-pdf/i8936.pdf – unclear to me how that works when using car for some 1099 income but mostly personal?

” and could take advantage of the credit well beyond the time that major competitors run out. Some people feel that this is unfair since early adopters are inadvertently being punished and it may be the reason that automakers are holding out.”

Everyone forgets that the numbers are much bigger now, and any automaker wanting to compete in the EV space will speed past the 200k mark in a few quarters. A very short-lived advantage.