Reduced Tax credit/changes this year?

[jeffcarroll78s2]

When I was recently searching for another Mitsubishi i-MIEV, I looked at new and used cars. A used 2014, with low mileage is what I ended up buying, but there were some attractive deals on new ones too. I was surprised when I reviewed the changes to the EV tax credit that must have taken place this year. The way I read it, i-MIEVs don't qualify for the full $7500 tax credit now, based on the battery calculation formula changes. We get the $2500 + $417/KW after 5KW. This only comes out to $6253.

Please let me know, if I missed something?

Jeff in Cincy

"Mia" 2012 Sliver w/ 42K
"Blue" 2014 Blue w/ 8500
"Pius" 2015 Gray Toyota Prius C
"Mr 2" 2003 Green Toyota MR2 Spyder

 

[mdbuilder]

https://www.irs.gov/businesses/30d-new-qualified-plug-in-electric-drive-motor-vehicles-mitsubishi-motors-north-america-inc

Still $7,500

 

[mdbuilder]

the credit is equal to $2,500 plus, for a vehicle which draws propulsion energy from a battery with at least 5 kilowatt hours of capacity, $417, plus an additional $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours. The total amount of the credit allowed for a vehicle is limited to $7,500.

Notice the commas around the first $417. The formula is $2,500 + 417 + (16-5)*417 or $2,500+417+4,587 = $7,504, but the limit is $7,500 so you get $7,500

 

[PV1]

I didn't know that changed. The only caveat I was aware of was the 50/25/0 after an automaker hits 200,000 plug-ins, where 6 months after 200,000 cars get 50% and the next 6 months get 25%.

Another reason I don't like how price quotes automatically include incentives. It's a dishonest way to advertise pricing, as not everyone will get the full incentive.