Tesla to get $7k tax credit on electric cars with new incentive reform

electrek.co

11 points·kevindeasis··4 comments

Volume caps were such a bad idea, but likely instituted to prevent tax fraud rather than the expectation of a viable EV.

It was partially about gaming CBO scoring for PAYGO federal budget rules, and partially a firebreak in case the EV market really took off and/or other mandates came into effect and tax credits weren't needed to keep it viable anymore.

What was particularly badly designed with this credit was the per-manufacturer phaseout instead of an industrywide phaseout. That's had the effect of punishing early EV entrants.

the comments had some good stuff: yes, shouldn't be per-manufacturer and no caps, but maybe don't OVERLY punish late entrants by giving them maybe an extra grand or two of advantage.

It also should not apply above a certain price point, or phase out above 50k.

It should phase out 1k / year, and there should be a phase-in of various ICE taxes: gasoline, car registration (so you get used cars), and new ICE cars.

I also think that there should be a very rapidly expanding tax on any ICE that isn't a PHEV, and that the qualifying all-electric range should climb 10 miles per year starting at 25 miles. PHEVs will maximize battery supply and is the low hanging fruit for reducing emissions, if it is true that 80-90% of trips can be covered by 30-50 mile range.

Huh, that's interesting, although I like that sound of that, I'm not sure how easy it would be to tax ICE vehicles

But, you bring up an interesting point. Why not give more tax deduction for business usage of EV vehicles, that to me is like an easier sell

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