EV Tax Credits 2024

[Piotrsko]

Originally Posted by JSH

Health insurance is priced by zip code and can vary wildly in cost even within a state. I've been paying close attention to that as we decide what address we will officially call home when we retire and start a nomadic lifestyle.

Been my experience on SSAN medicare that location only gives you a provider choice which could or not matter as to provided services ( after making the consideration you are 65 retiring). If not, good luck, you'll need t.

[Hersbird]

But you don't have to have the tax liability anymore if you do point of sale. I don't understand how they got that from the language of the law, but that's the guidelines directly from the IRS. As the only enforcement for tax laws, I'd say it's a safe bet you don't have to worry about them wanting it back. I am curious how it's going to look on the tax forms. A bad job filling out those could lead to messing up your other taxes because it doesn't wash out right.

[JSH]

Originally Posted by Piotrsko

Been my experience on SSAN medicare that location only gives you a provider choice which could or not matter as to provided services ( after making the consideration you are 65 retiring). If not, good luck, you'll need t.

I'm not 65 so my shopping has been on the ACA exchanges. The same Blue Cross / Blue Shield plan can vary by thousands of dollars based on zip code.

From shopping individual insurance policies when we lived in Alabama - the BCBS plan offered on the exchange is the same as the plan offered direct. The only difference is if you buy direct instead of on the exchange you don't get any federal subsidies to help pay for the policy.


Which reminds me - I need to shop for plans again so I can adjust my retirement budget and know how much income I can realize per year before the subsidy starts phasing out.

[JSH]

Originally Posted by Hersbird

But you don't have to have the tax liability anymore if you do point of sale. I don't understand how they got that from the language of the law, but that's the guidelines directly from the IRS. As the only enforcement for tax laws, I'd say it's a safe bet you don't have to worry about them wanting it back. I am curious how it's going to look on the tax forms. A bad job filling out those could lead to messing up your other taxes because it doesn't wash out right.

The guidelines to dealers says there is a form for the buyer to sign stating that they qualify for the credit. I personally can't see taking the risk of lying on the form. Only 7 vehicles even still qualify for the full $7500 credit in 2024 when purchased but every one gets the full $7500 if leased. Why take the risk?

The Biden administration is telling the IRS to ignore the text of the IRA and ignore income requirements on the low side. That is how they got to the current guidelines. I can't imagine that will go uncontested by groups that don't like the current administration, don't like EVs, and especially don't like EV credits.


"I'd say it's a safe bet you don't have to worry about them wanting it back"

Tell that to people that thought they were getting their student loans forgiven until that executive guideline was challenged in court and ruled illegal.

There also is no guarantee that Biden will still be president in 2025 when we are doing our 2024 taxes. The next president may direct the IRS to require the repayment of tax credit for people with too little income to quality - just as Biden is directing the IRS to require repayment from those that make too much.

[freebeard]

"There also is no guarantee that Biden will still be president in 2025 when we are doing our 2024 taxes."

[Isaac Zachary]

Originally Posted by JSH

Only 7 vehicles even still qualify for the full $7500 credit in 2024 when purchased but every one gets the full $7500 if leased.

Well, I wouldn't recommend taking the risk, nor would I take such a risk.

But one reason a person might do that is that it seems impossible to find a good lease deal on a cheaper EV, like a Chevy Bolt. So, with perhaps the exception of much more expensive EV's, it doesn't seem like the lease loophole is working for those of use who'd want to save every last penny by getting a cheap EV with the $7,500 credited to the lease deal.

This may change in the future as more EV's come available.

[redpoint5]

I think I've missed something huge this whole time...

The federal tax credit is now taken at the point of sale as a reduction in the vehicle sales price?

[Isaac Zachary]

Originally Posted by redpoint5

I think I've missed something huge this whole time...

The federal tax credit is now taken at the point of sale as a reduction in the vehicle sales price?

Well, it only started 11 days ago. So "this whole time" hasn't been for long.

The fear is that if you get the tax credit as a reduction in the vehicle sale's price but then end up not qualifying for a part or all of it, then you may have to pay it back to the IRS.

[redpoint5]

How is that supposed to work? If it reduces the purchase price, the dealership is then floating the $7,500 until the IRS pays them back. Dealerships don't like partial payments at point of sale.

[Isaac Zachary]

Originally Posted by redpoint5

How is that supposed to work? If it reduces the purchase price, the dealership is then floating the $7,500 until the IRS pays them back. Dealerships don't like partial payments at point of sale.

It works by the government cutting the dealership a check that they're supposed to get a few days after the purchase.