Build Back Better / Federal Tax Credit Redux

CarlosDanger1 · 02-06-2022, 05:09 AM

As discussed in previous posts, the Build Back Better bill, as passed by the House, was going to eliminate the tax credit for EV sedans costing more than $55k, and also was going to put an income limit on claiming the credit. The bill did not make it through the Senate, and it's not clear that it ever will, though anything could happen.

As of today (2/6/22), I see that the the i4 and M50 have been added to the IRS's official list of EVs eligible for the tax credit.

https://www.irs.gov/businesses/irc-3...vehicle-credit

If there are any tax/constitutional law scholars in this forum, I would be interested in your non-binding opinion about whether a $55k price cap could be applied retroactively through a statute amending the tax code.

In other words, assuming that I buy an M50 and it is delivered in June 2022, and then Congress establishes a $55k ceiling for the tax credit in November, could they take away the tax credit that I was relying on when I bought the car?

techwhiz1 · 02-06-2022, 01:52 PM

Quote:

Originally Posted by CarlosDanger1

As discussed in previous posts, the Build Back Better bill, as passed by the House, was going to eliminate the tax credit for EV sedans costing more than $55k, and also was going to put an income limit on claiming the credit. The bill did not make it through the Senate, and it's not clear that it ever will, though anything could happen.

As of today (2/6/22), I see that the the i4 and M50 have been added to the IRS's official list of EVs eligible for the tax credit.

https://www.irs.gov/businesses/irc-3...vehicle-credit

If there are any tax/constitutional law scholars in this forum, I would be interested in your non-binding opinion about whether a $55k price cap could be applied retroactively through a statute amending the tax code.

In other words, assuming that I buy an M50 and it is delivered in June 2022, and then Congress establishes a $55k ceiling for the tax credit in November, could they take away the tax credit that I was relying on when I bought the car?

They could but they probably won't make it retroactive and will probably commence with the new tax year.

Because buying decisions were made based on current law. If you asked if it passed in March, that might be different.

BeastBmW · 02-06-2022, 08:07 PM

Quote:

Originally Posted by techwhiz1

Quote:

Originally Posted by "CarlosDanger1;28555876"

As discussed in previous posts, the Build Back Better bill, as passed by the House, was going to eliminate the tax credit for EV sedans costing more than $55k, and also was going to put an income limit on claiming the credit. The bill did not make it through the Senate, and it's not clear that it ever will, though anything could happen.

As of today (2/6/22), I see that the the i4 and M50 have been added to the IRS's official list of EVs eligible for the tax credit.

https://www.irs.gov/businesses/irc-30d-new-qualified-plug-in-electric-drive-motor-vehicle-credit

If there are any tax/constitutional law scholars in this forum, I would be interested in your non-binding opinion about whether a $55k price cap could be applied retroactively through a statute amending the tax code.

In other words, assuming that I buy an M50 and it is delivered in June 2022, and then Congress establishes a $55k ceiling for the tax credit in November, could they take away the tax credit that I was relying on when I bought the car?

They could but they probably won't make it retroactive and will probably commence with the new tax year.

Because buying decisions were made based on current law. If you asked if it passed in March, that might be different.

👍

BeastBmW · 02-06-2022, 08:08 PM

Quote:

Originally Posted by techwhiz1

Quote:

Originally Posted by "CarlosDanger1;28555876"

As discussed in previous posts, the Build Back Better bill, as passed by the House, was going to eliminate the tax credit for EV sedans costing more than $55k, and also was going to put an income limit on claiming the credit. The bill did not make it through the Senate, and it's not clear that it ever will, though anything could happen.

As of today (2/6/22), I see that the the i4 and M50 have been added to the IRS's official list of EVs eligible for the tax credit.

https://www.irs.gov/businesses/irc-30d-new-qualified-plug-in-electric-drive-motor-vehicle-credit

If there are any tax/constitutional law scholars in this forum, I would be interested in your non-binding opinion about whether a $55k price cap could be applied retroactively through a statute amending the tax code.

In other words, assuming that I buy an M50 and it is delivered in June 2022, and then Congress establishes a $55k ceiling for the tax credit in November, could they take away the tax credit that I was relying on when I bought the car?

They could but they probably won't make it retroactive and will probably commence with the new tax year.

Because buying decisions were made based on current law. If you asked if it passed in March, that might be different.

Gotcha!!!🔜

Haywood · 02-07-2022, 01:28 PM

Why are the Tesla rebates being phased out?

techwhiz1 · 02-07-2022, 01:44 PM

Quote:

Originally Posted by Haywood

Why are the Tesla rebates being phased out?

Tesla was phased out/eliminated in 2019 due to reaching 200k vehicles produced.

spool twice · 02-24-2022, 05:01 PM

my advice,

play around by looking at cars on cars.com that are EV's and see what your tax credit would be as a simulation. Mine wasn't what I expected it to be given my salary :-/

techwhiz1 · 02-24-2022, 10:14 PM

Quote:

Originally Posted by spool twice

my advice,

play around by looking at cars on cars.com that are EV's and see what your tax credit would be as a simulation. Mine wasn't what I expected it to be given my salary :-/

It really depends on tax liability.
You need to pay the equivalent in federal tax to get the full credit.

02-06-2022, 05:09 AM	#1
CarlosDanger1 Registered 3 Rep 4 Posts Drives: BMW M5 Join Date: Nov 2021 Location: Washington DC iTrader: (0)	Build Back Better / Federal Tax Credit Redux As discussed in previous posts, the Build Back Better bill, as passed by the House, was going to eliminate the tax credit for EV sedans costing more than $55k, and also was going to put an income limit on claiming the credit. The bill did not make it through the Senate, and it's not clear that it ever will, though anything could happen. As of today (2/6/22), I see that the the i4 and M50 have been added to the IRS's official list of EVs eligible for the tax credit. https://www.irs.gov/businesses/irc-3...vehicle-credit If there are any tax/constitutional law scholars in this forum, I would be interested in your non-binding opinion about whether a $55k price cap could be applied retroactively through a statute amending the tax code. In other words, assuming that I buy an M50 and it is delivered in June 2022, and then Congress establishes a $55k ceiling for the tax credit in November, could they take away the tax credit that I was relying on when I bought the car?
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02-07-2022, 01:28 PM	#5
Haywood I know a thing or 2 about a thing or 2... 3101 Rep 3,470 Posts Drives: E36 M3 Coupe, e39 M5, i3s Join Date: Oct 2008 Location: LI, NY iTrader: (11) Garage List 2003 BMW e39 M5 [0.00] 1997 BMW e36 M3 [0.00]	Why are the Tesla rebates being phased out? __________________ 2019 Imperial Blue Metallic i3s BEV 2003 Le Mans Blue e39 M5 Dinan S1 1997 Alpine White e36 M3 (the old gal) 2013 Mineral White e92 M3 (sold ) 2014 Carbon Black 650i M-sport (sold)
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02-24-2022, 05:01 PM	#7
spool twice Rainbow Racer 1008 Rep 2,539 Posts Drives: BMW M4cs Join Date: Sep 2010 Location: Tampa Bay, FL Area iTrader: (7) Garage List 2019 M4cs [0.00]	my advice, play around by looking at cars on cars.com that are EV's and see what your tax credit would be as a simulation. Mine wasn't what I expected it to be given my salary :-/ __________________ -Loe P.- Prior Car:'14 Audi S5 3.0t DSG [ APR ECU/TCU \| Pullies + basic bolt-on mods \| 10.861@127.90mph ] Current Car: F82 M4cs \| TT-RS \| On Order: i4 M50
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