Transportation Secretary Pete Buttigieg asked how people would use up to a $12,500 tax incentive that will be available in the Build Back Better bill if passed on the purchase of a new electric vehicle:
The Build Back Better package includes tax incentives to help purchase an EV.
How would you use a discount of up to $12,500 toward an electric vehicle?
— Secretary Pete Buttigieg (@SecretaryPete) November 1, 2021
Um, people would use it toward the cost of the new electric vehicle?
We have 1 electric and 1 hybrid.
We'd trade in that hybrid and get a long range electric and stop using gas to fuel our driving. https://t.co/c7yJ1QhAn7
— Brady Quirk-Garvan (@bradyqg) November 1, 2021
Maybe someone can explain to us the environmental benefits of people buying brand new cars that are just “slightly less polluting” overall, if that:
Hell of a country where the government gives you $12,500 to buy a slightly less polluting car and $0.00 for choosing to live car-free https://t.co/XOk4qNlyXj
— Travis R. Eby (@travis_robert) November 1, 2021
GM and Elon Musk need help too, ‘yall:
https://twitter.com/Adam_Estroff/status/1455260986437480449
There is also a provision in there to help subsidize the cost of electric bikes:
In the unfinished House version of Build Back Better, the federal government will pay for your electric bike — or a portion of the cost — up to $1,500, if you less than $75K/year. And you can get a new one every year for five years. There are lots of </=$1,500 electric bikes. pic.twitter.com/rfxELwFsRH
— Jonathan Allen (@jonallendc) November 2, 2021
And:
The $12.5k is only for those buying electric *cars* — not e-bikes, which would get a credit of only $1.5k (although e-bikes pollute far less).
And you can make up to $400k/year to claim the EV credit. The e-bike credit is capped at ~$83k. https://t.co/MoTebOT33c
— David Zipper (@DavidZipper) November 1, 2021
This new tax incentive is different than past incentives in that you actually get money back from the IRS. From Grist:
If they pass, the new EV tax credits will make the old credits look stingy. For electric cars that are assembled in the U.S. with union labor and U.S.-made batteries, consumers will get up to $12,500 off their taxes. (If you buy a car not made in the U.S., you can still get up to $7,500 off.) And, for the first time, the credit will be refundable. Let’s say you only owe 10 grand in taxes, but qualify for the entire $12,500 tax credit: The Internal Revenue Service will give you the full $2,500 in cash back.
So, basically, wealthy people will buy new cars and make money on the deal. Great job, champions of the working class:
Pro tip: the new proposed $12,500 EV credit can actually be a moneymaker. If your net tax owed is less than $12,500, you get a check back from the IRS.
Someone's gonna figure out how to play that tax arbitrage big time https://t.co/gHD7KEpwm1
— Brian Sullivan (@SullyCNBC) November 2, 2021
We really are doomed with all this:
Yes, @SecretaryPete! The Kildee-Biden-Stabenow tax credit for consumers will help more working families purchase electric vehicles made in America.
The result? Boosting U.S. manufacturing and supporting workers while accelerating America's transition to clean energy. https://t.co/JdOzDXBK29
— Rep. Dan Kildee (@RepDanKildee) November 1, 2021
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