Good luck qualifying for that $7,500 tax break Joe Biden is touting on that EV he wants you to buy

American Thinker ^ | 02/01/2023 | Rajan Laad

[SeekAndFind]

Just yesterday, Joe Biden’s official Twitter account posted that the great American road trip is going to be fully electrified and that citizens can receive a tax credit of up to $7,500 for a new electric vehicle (EV).

Along with the message was a photo of Biden driving a GMC Hummer EV.

 

On my watch, the great American road trip is going to be fully electrified.

And now, through a tax credit, you can get up to $7,500 on a new electric vehicle.


pic.twitter.com/n3iZ9etL4A — President Biden (@POTUS) January 30, 2023

 

This was part of the Inflation Reduction Act of 2022 which changes rules for an existing tax credit associated with the purchase of “clean” vehicles.

We dig deeper.

Does Biden’s Hummer EV qualify for the scheme?

The $7,500 credit scheme is applicable to new vans, sport utility vehicles, and pickup trucks that cost $80,000 or less.

The GMC Hummer EV costs between $87,000 and $110,000, hence doesn't qualify for the credits.

Clearly, those running Biden’s Twitter account didn’t read the criteria on the IRS Website.

This isn’t the first time Biden has promoted expensive vehicles.

Fox News revealed that during a September Detroit auto show, Biden boarded a Cadillac LYRIQ, an electric SUV with a starting price of over $60,000 and said the following:

"The vehicles here give me so many reasons to be optimistic about the future."  

"Just looking at them and driving them, they just give me a sense of optimism, although I like the speed, too."

[SeekAndFind]

NOW, THE ALL IMPORTANT QUESTION:

How environmentally friendly is the vehicle in question?

The American Council for an Energy-Efficient Economy reported that Biden’s Hummer EV “emits more per-mile carbon dioxide pollution when taking into consideration its electricity use than a gas-powered Chevy Malibu sedan.” 

NPR reported certain issues with the scheme.

Only vehicles that cost less than $55,000, or less than $80,000 for trucks and SUVs qualify for the tax credit.

The average cost of an EV is roughly $66,000, which means few vehicles qualify for the scheme. Some vehicles listed on the IRS website as potentially eligible for credit actually fail to qualify because they are expensive.

Another problem is that there isn't an explicit definition regarding which vehicle is subject to that $55,000 cap and which vehicle is subject to a $80,000 cap. 

The IRS states the categories are based on the criteria for fuel economy for gas-powered vehicles standards, but these classifications seem arbitrary and confusing.

There were other problems with the information on the IRS website.

The plug-in hybrid Ford Escape was listed as having an $80,000 price cap for more than a week before the cap was changed to $55,000. The Treasury Department claims the original price cap was a typo.

You would have hoped the content on the website was reviewed before publishing.

But then this is the Biden administration, blundering is its middle name.

There are other issues with the scheme.

The clean vehicle credit is a “non-refundable” tax credit, which means buyers only get the full benefit if they have an annual federal tax liability of at least $7,500, which seems odd.

Some of the tax credit rules took effect on Jan. 1. However, others rules related to battery minerals and other components are expected to take effect by March 2023.

Hence, many vehicles that currently qualify for the tax break may not after the rules take effect.

The scheme has income restrictions, too.

A maximum of $300,000 for a household, $150,000 for an individual, or $225,000 for a head of household. The income limit is adjusted gross (AGI) income, not the total income. AGI is the gross income minus adjustments to income. 

Experts say that these restrictions unnecessarily disqualify a significant potential number of buyers.

Finally, the qualifying EV must have undergone final assembly in North America to qualify for the scheme. The claim is they want to boost U.S. manufacturing.

If that was the case, why didn't they restrict the location of assembly to the U.S. rather than North America which includes the Canada, Mexico, etc.? 

If foreign players are indeed being allowed, why not allow them all?

[PGR88]

Green-energy is an ideological-political scheme, not an economic one

So it will rise or fall with the fortunes of the woke regime in Washington - and its ability to fund it.

[alternatives?]

I am not sure if I am Joe that I would be optimistic about the future.

[Carriage Hill]

I would buy one of those EV piles-of-shit, for a $20,000 rebate. I'll keep my 2019 Jeep Grand Cherokee Supercharged HEMI V8.

[joshua c]

Then they must get out of the way and allow every player to compete in a free and fair manner which means no favoritism and no discrimination.

---

that is not how fascism works

[chopperk]

You will burn through the $7500 the first year of ownership and then when you will need to replace batteries you will burn through $40,000 more.

[Organic Panic]

hahaha. During the last cold snap it took my colleague’s son THREE DAYS to drive 300 miles in his Tesla. What a deal.

[aquila48]

Giving a rebate will incentive the manufacturers to raise the price by the amount of the rebate, so in effect most of the rebate goes to the company.

[lurk]

Next car I buy will be a ten year old Toyota. That’s all I can afford.

[momincombatboots]

Several freepers got these in the past… maybe they can help.

[JoJo354]

EV are not practical yet, especially if you live out in the country, in hurricane country, deep winter country or on a fixed income.

[SaveFerris]

Because $60,000-$80,000 vehicles are SOOOOOO affordable to Americans who have been devastated by the war on the Middle Class. /rolls eyes

Which is why I was buying 99 cent cans of pasta sauce last night - still a good deal (the sale is gone now - a loss leader which I shop every week or few weeks if I can. They had peanut butter for 99 cents though now I generally buy the 64oz at WalMart - still not a bad buy)

[ridesthemiles]

This answers the question as to WHY Musk lowered the price of his cars-—FORD followed.

NOW—buyers can still get the $7500.

[roadcat]

Because $60,000-$80,000 vehicles are SOOOOOO affordable to Americans who have been devastated by the war on the Middle Class. /rolls eyes

I used to think that $20,000 was too much to pay for a truck. Now prices are ridiculous. Oh, for the good old days when cars were $5,000 new.

[SaveFerris]

It’s half to two-thirds (almost) of what I paid for a brand-new, custom-built four-bedroom house 30 years ago.

These days, you’d have to sleep in it.

RVs? Oh, never mind.

[minnesota_bound]

I Bought a $115,000 GMC Hummer EV and It IMMEDIATELY Left Me Stranded!
https://www.youtube.com/watch?v=uIXfp7pVFV4

After Breaking Down, Did Anything Else Break On My New Hummer EV? | One Month Update
You have to buy a spare tire and it cost $2,500 <— wow!!
See how much space it takes up in the bed. It also blocks your view.
https://youtu.be/ASF4Ka1MWK8?t=945

[rxh4n1]

I’m not paying $60 to $80k for a station car.