No tax credit in 2017

[pdxbolt]

I have it on good authority from a tax attorney in L.A. that the federal tax credit will be eliminated next year including the 2016 tax year. So anyone who has not taken possession of their vehicle by December 31 will not get the credit. Rethinking my order.

 

[user 387]

I have it on good authority from a tax attorney in L.A. that the federal tax credit will be eliminated next year including the 2016 tax year. So anyone who has not taken possession of their vehicle by December 31 will not get the credit. Rethinking my order.

This is confusing. You said "including the 2016 tax year" - did you mean "including the 2017 tax year"? I would think that any of us taking the credit in 2016 would be safe...

 

[dan2112]

Well that should be interesting for people who are leasing in early Jan. Once the contract is signed GM may be holding the bag for 7k.

 

[MetaBolt]

Perhaps the tax attorney was referring to the ultimate phase out of the provision (which for a Bolt will not happen in 2017 as currently written):

Credit Phaseout
The credit for vehicles with at least four wheels is subject to a phaseout (reduction) once the vehicle manufacturer (or, for a foreign manufacturer, its U.S. distributor) sells 200,000 of these vehicles to a retailer for use in the United States after 2009. The phaseout begins in the second calendar quarter after the quarter in which the 200,000th vehicle was sold. Then the phaseout allows 50% of the full credit for 2 quarters, 25% of the full credit for 2 additional quarters, and no credit thereafter.

https://www.irs.gov/instructions/i8936/ch01.html#d0e124

 

[SparkE]

I have it on good authority from a tax attorney in L.A. that the federal tax credit will be eliminated next year including the 2016 tax year. So anyone who has not taken possession of their vehicle by December 31 will not get the credit. Rethinking my order.

Please post the name of the tax attorney. Since he can obviously see the future, I'd like to use him to pick my stocks for me. I'll split profits 50-50 (so long as he will eat all losses).

 

[DucRider]

I have it on good authority from a tax attorney in L.A. that the federal tax credit will be eliminated next year including the 2016 tax year. So anyone who has not taken possession of their vehicle by December 31 will not get the credit. Rethinking my order.

Please post the name of the tax attorney. Since he can obviously see the future, I'd like to use him to pick my stocks for me. I'll split profits 50-50 (so long as he will eat all losses).

Yep,
I'd like to know how he/she knows what changes Congress will make to the Tax Code. Since 30D is "in the books", they would also have to make it retroactive to affect any purchases/leases made in Jan - ?? (whenever the legislation would be passed). A retroactive change is not unprecedented, but would be very unusual.

 

[roundpeg]

We are exploring the difference between "a good authority" and "a reasonable prediction."

 

[Schnort]

I was leaning towards histrionic leftist believing Trump is the Apocolypse.

 

[pdxbolt]

Congress is working on the tax bill right now. And yes, they can take away the credit for 2017. The car manufacturers won't fight. They don't really want to build these cars. Just ask the fiat Chrysler guy.
If they could not make money on the fiat, I'm sure they can't on the bolt either.
It's regulation states very clearly that you need to put the car into service the same year you claim the credit for. So it would not even be retroactive at all.

 

[MetaBolt]

I was leaning towards histrionic leftist believing Trump is the Apocolypse.

Apocalypse - noun
a prophetic revelation, especially a cataclysm in which the forces of good permanently triumph over the forces of evil.

He could be....he just could be.

 

[DucRider]

Congress is working on the tax bill right now. And yes, they can take away the credit for 2017. The car manufacturers won't fight. They don't really want to build these cars. Just ask the fiat Chrysler guy.
If they could not make money on the fiat, I'm sure they can't on the bolt either.
It's regulation states very clearly that you need to put the car into service the same year you claim the credit for. So it would not even be retroactive at all.

If a bill passed Jan 2nd and applied to Jan 1st purchases, it would be retroactive. Same goes for a February (or later) passage.

 

[roundpeg]

I was leaning towards histrionic leftist believing Trump is the Apocolypse.

I guess we're just being histrionic to notice that he's already said that climate change is a Chinese hoax, and followed up by loading up his cabinet with climate change skeptics and fossil fuel interests. Other than that, the abrupt change in energy policy from renewables to drill baby drill and dig baby dig is just a figment of a liberal imagination. Must be that.

I would say the tax credits are all but gone. I don't suppose they would be at all simple to repeal immediately let alone retroactively. That being said, I am still anticipating delivery in 2016.

 

[roundpeg]

If a bill passed Jan 2nd and applied to Jan 1st purchases, it would be retroactive. Same goes for a February (or later) passage.

Is Congress actually in session on January 2nd?

 

[DucRider]

If a bill passed Jan 2nd and applied to Jan 1st purchases, it would be retroactive. Same goes for a February (or later) passage.

Is Congress actually in session on January 2nd?

The point being that any Bill passed will have to be retroactive if it affects all purchases in 2017.....

 

[pdxbolt]

check this out:
https://www.google.com/url?sa=t&rct...le.pdf&usg=AFQjCNEUmo7MNrLPUZjUJGp989tdhsfLzA

and this
http://www.weeklystandard.com/new-group-launches-to-zap-electric-car-subsidies/article/2000265

Consider the source for each...

 

[Silence]

Yes, the incoming administration may not view this tax credit favorably, but you still haven't introduced any evidence or "authority" that action is being taken to eliminate it, So far all I see is speculation.

 

[marshallinwa]

I thought Trump was suppose to save American jobs, not destroy them. Those battery workers in Smyrna will be scratching their heads and wondering why they voted for him. I wonder what the senators from Tennessee think of this.

So far Pdxbolt, I'm not impressed with your sources. But we won't know until we get their.

I will say the 2016 tax credit is in the bag. They are not going to take that away.

 

[MetaBolt]

Yes, the incoming administration may not view this tax credit favorably, but you still haven't introduced any evidence or "authority" that action is being taken to eliminate it, So far all I see is speculation.

Listening to the words of the Prez-elect, understanding who is being appointed to critical positions in the administration, seeing the balance of power in all branches, it's perfectly reasonable to be concerned about the continuation of this credit (as well as any semblance of Social Security, Medicare or health insurance for 21 million folks who were able to get it thru the ACA).

 

[roundpeg]

Yes, the incoming administration may not view this tax credit favorably, but you still haven't introduced any evidence or "authority" that action is being taken to eliminate it, So far all I see is speculation.

Listening to the words of the Prez-elect, understanding who is being appointed to critical positions in the administration, seeing the balance of power in all branches, it's perfectly reasonable to be concerned about the continuation of this credit (as well as any semblance of Social Security, Medicare or health insurance for 21 million folks who were able to get it thru the ACA).

I suppose his point is Trump perhaps doesn't actually mean anything he says and his selection of a cabinet loaded with fossil fuel industry people and climate change skeptics is merely a coincidence. I suppose we could hold out for that possibility.

 

[Schnort]

Or maybe the tax credit is not on anybody's radar, and would be too politically damaging to "fix", even if they wouldn't have voted for it in the first place. It would require a pretty targeted effort to get rid of, and it only costs around $1B/yr.

The law was originally passed by ~2/3rds majority in both the senate and house and was signed by president Bush(and not along party lines). It was part of the highly contentious economic bailout of 2008, so it was bundled with TARP, some AMT relief and tax cuts, and a few other sundry things.