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Discussion Starter · #1 · (Edited)
At least for now... we'll see if Senate passes it as-is.

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As part of President Biden's Build Back Better (BBB) legislation, which still has to pass the Senate, US EV buyers may get a refundable tax credit of up to $12,500 when they purchase a new EV. However, $4,500 is earmarked for EVs built in the US by unionized automakers. That said, there is not a single currently available EV in the US that would qualify for the full credit.

Sure, the Chevrolet Bolt EV (and Bolt EUV) will qualify, though these are the only current EVs built in the US by union workers. and there's one massive caveat. Due to battery fires, the Bolt EV and Bolt EUV are not currently for sale, as GM isn't even producing them at this time.

What about the Ford Mustang Mach-E? Ford is an American automaker that relies on union workers, but it produces the Mach-E in Mexico, so it doesn't qualify. Tesla's vehicles are built in the US, though the electric automaker isn't unionized.

GM is planning an onslaught of EVs, so it seems the Biden Administration is banking on the future, putting all of its eggs in one basket, and counting on Mary Barra to come through. The all-new GMC Hummer EV is coming to market very soon, so perhaps people are hoping to get the full credit on the hulking electric pickup truck. However, it's too expensive, so it doesn't qualify. On the flip side, GM's upcoming Cadillac Lyriq SUV should qualify based on the latest language.

Until the Ford F-150 Lightning comes to market, buyers really won't have any option to take advantage of the full credit. The Lightning will benefit from the credit in a very big way, with the base model costing just $28,000 after the credit.

Eventually, the Bolt EV and EUV will resume production and sales. However, even with a $12,500 credit, it would be a big surprise if car shoppers started flocking to Chevy dealers to buy an EV that's been recalled multiple times, and that they've seen on fire in the news for over a year now. Perhaps GM can regain trust and promote the heck out of the Bolt, though it may come as a surprise to many folks if that's how it actually plays out.

Keep in mind, since the BBB legislation hasn't passed the Senate, and changes will likely be made, we don't yet know for sure how all of this is going to play out. If the Senate simply removes the part about unions, the problem is mostly solved. It could also choose to raise or lower the starting price requirements, but there's always the case against subsidizing expensive products for wealthy buyers.

Did we miss any other EVs built in the US by union workers? What about other upcoming electric cars? This topic deserves plenty of conversation. Scroll down and engage.
Insideevs
 

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Discussion Starter · #3 · (Edited)
With this tax credit do we also get those sweet shades if we buy a new EV? That may be the clincher.
Why would you want sunglasses that are made entirely from recycled wood and glass (and assembled by Sherpas)? Gross. :p
 

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Didn’t read the full bill language: does the full amount of the credit carry forward? Or is this still a preferential credit for higher income buyers?

I’m betting it does not.

Then again, if Chevy (and others) can aggressively lease the Bolt/Bolt EUV (I’m thinking $150/mo with no regional requirements or strings attached), I guess the poors can still benefit from this bill as-written.
 

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Didn’t read the full bill language: does the full amount of the credit carry forward? Or is this still a preferential credit for higher income?
The threshold for the full credit, when it was a tax credit was about $65k for a single filer, and around $89k for married filers.
While it isn’t poverty wages, I’d surmise that if you can afford a $45-60k ev you probably make the above mentioned wages.

Not exactly the highest threshold to overcome.
 

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I would definitely be one of the idiots willing to buy a new Bolt with the full tax credit if GM discounts them further to "regain trust". A new Bolt for under $20k sounds great.
 

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This is old news, regardless, it's a good call. Incentives should be based on impacting low income families, and not for the likes who like to be pampered in white pleather and warp speed.
 

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What about my 4xe? It’s a PHEV, not a BEV, but it qualified for the full $7500 existing tax credit. And it’s built with Union labor in Ohio. Seems like it should qualify, unless they rewrote the rules to remove PHEVs.
 

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Discussion Starter · #9 · (Edited)
What about my 4xe? It’s a PHEV, not a BEV, but it qualified for the full $7500 existing tax credit. And it’s built with Union labor in Ohio. Seems like it should qualify, unless they rewrote the rules to remove PHEVs.
It all depends on your battery size. You definitely qualify for $4,000 since it's a PHEV. You might still qualify for another $4,500 for carrying 'made in USA' with union title. Not too shabby, imho.

Here's how the proposed changes shake out, and keep in mind, they may change yet. The base amount remains $4,000, as it is today, with another $3,500 available if the EV's battery pack includes at least 40 kilowatt-hours of capacity. In the case of plug-in hybrids, the gas tank cannot exceed 2.5 gallons. This is for cars placed in service before 2027. Now comes the $5,000 boost. EVs and consumers will be able to qualify for another $4,500 in the tax credit if an automaker makes the EV in the US with a union workforce.
Cnet
 

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He needs to take the 'union' part out of this and get on with his agenda if he want's to cram EVs down everyone's throat. Give me an incentive to truly replace an ICE vehicle that isn't a Volt, Hummer, or massively expensive F150. I drive a base model F150 for work and would never consider owning one, much less electric, for personal use.
 

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Would the F150 Lightning qualify as well?
I would imagine that will be built in the USA in a unionized Ford plant.

Is Rivian unionized?

Also, electric motorcycles are also getting an EV tax credit. But I couldn't find out whether the US made, union shop motorcycles get a larger tax credit. As far as I know, Harley (Livewire) is a union shop. Not sure whether California based Zero is unionized.
 

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I don't even understand why motorcycles are legal. They kill people 35x as often per mile as cars do. Why switch to EVs (which is to save lives) by promoting something that kills people 35x as quickly as regular combustion vehicles? Or maybe that is the point: get everyone on motorcycles so they all die, reducing their carbon footprint to zero? Have I been missing the point all along, that Harleys are Boomer Killers, and it was all just a plot to reduce the cost of Social Security and Medicare while cutting the nation's carbon footprint?
 

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Cool!
 

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I don't even understand why motorcycles are legal. They kill people 35x as often per mile as cars do. Why switch to EVs (which is to save lives) by promoting something that kills people 35x as quickly as regular combustion vehicles? Or maybe that is the point: get everyone on motorcycles so they all die, reducing their carbon footprint to zero? Have I been missing the point all along, that Harleys are Boomer Killers, and it was all just a plot to reduce the cost of Social Security and Medicare while cutting the nation's carbon footprint?
My motorcycle takes up just 1/3rd the space of a compact car on the road. By being electric, my 1 mile ride to the UPS store where I get my mail and ship our company shipments from uses about 200 watts of power.

If just 10% of car drivers made the switch to two wheels – including a 20% increase in parking spaces, a 40% reduction in road congestion and financial savings from less cars on the road.

 

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So, more accurately, the Bolt will be the first of many EVs eligible for the $12.5k credit?

I’d prefer the money be spent on a DC Fast Charger network.
 

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The threshold for the full credit, when it was a tax credit was about $65k for a single filer, and around $89k for married filers.
While it isn’t poverty wages, I’d surmise that if you can afford a $45-60k ev you probably make the above mentioned wages.

Not exactly the highest threshold to overcome.

That's helpful to know as a rule of thumb, but even at $65,000 annual gross as a single person, a $45,000 car is gonna put the squeeze on your finances. Especially with all the other costs of being alive in Americuh.

Yet again, our dear leade... sorry, lawmakers.. fail to craft policy that makes meaningful impact for average Americans. You know, the average non-metropolitan family of four, who makes a median $63,400, and who needs a 300mi EV CUV to be as affordable as possible (which I would put at a loan payment of >$400/mo, ideally less).


One might be tempted to say 'that buyer will have to do with a used car or an ICE vehicle instead', but the point of federal policy like this is to shape large-scale outcomes. Ignoring the majority of the population isn't going to result in an effective and expedient transition of the national passenger vehicle fleet away from fossil fuels.
 

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It really does send a mixed message. If you care about promoting EVs, then promote ALL electric vehicles. All that this reveals is they are lying about caring about EVs (big surprise) and really only care about buying midwest union votes.
The intent is to convince all the non union manufacturers to impose unionization on their employees as to not lose sales.
 
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