Well, sorta - Like many other things our government does, the tax credit was designed to benefit only those who are relatively wealthy. You need almost $100K of taxable income to get the full $7500. For more 'average' buyers, the credit is next to useless, or at best, they get a few hundred dollars from it. If you earn say $50K per year and are a family of 4, you won't come close to getting the full credit . . . . if you qualify for many of the exemptions and deductions that an average family does, you may well get none of itaarond12 said:. . . . but obviously this is NOT what the tax credit was to be used for. :evil:
Nope - Wish it was. It's a credit against whatever your total tax liability is - If you owe no taxes, you get no credit. If you owe $1,000 after all other credits and deductions, you get a $1,000 credit and not the full $7500acensor said:I'm not sure (I may be misunderstanding) you're correct about "next to useless":
My understanding is that a tax CREDIT is like cash.
NopeIf you, say, have only $1000 in tax liability after all your deductions etc, you'd get a refund of $6500.
If you were very low income and had no tax liability you'd get a refund of $7500 (or apply it against next year's taxes.
Sounds like you'll do OK - If you owe $6000 in taxes AFTER all other deductions and credits are added up, then you'll get $6000 of the $7500 and owe no taxes at all. Nothing carries forward to the next year(FWIW I wildly guesstimate I'd owe about $6000 in taxes 2013 without the $7500 credit.)
Anyone care to educate me?
I agreed with this at first but then I gave it some more thought. This new technology is expensive and we need to get as many EV's out there as we can so the price will eventually come down. One reason that they haven't sold well is because it is still cheaper to buy and run a fuel efficient car than an EV. So we need the 'wealthy' people referenced above to spend the money to get the ball rolling. The tax credit is just what we need to accomplish this. Those of us who won't buy until the prices come down are counting on it.Don said:Well, sorta - Like many other things our government does, the tax credit was designed to benefit only those who are relatively wealthy. You need almost $100K of taxable income to get the full $7500.
. . . . and if it was just a flat, across the board rebate for anyone and everyone who wanted to buy one, it wouldn't accomplish that?blownb310 said:So we need the 'wealthy' people referenced above to spend the money to get the ball rolling. The tax credit is just what we need to accomplish this. Those of us who won't buy until the prices come down are counting on it.
Don said:. . . . and if it was just a flat, across the board rebate for anyone and everyone who wanted to buy one, it wouldn't accomplish that?blownb310 said:So we need the 'wealthy' people referenced above to spend the money to get the ball rolling. The tax credit is just what we need to accomplish this. Those of us who won't buy until the prices come down are counting on it.
Why should it be designed to help only those wealthier buyers and not the rest of us?
Don
blownb310 said:You might be right, but my logic is that the majority of the rest if us still wouldn't buy it even with a $7500 discount. When the day comes that an EV becomes a better deal than a gas car, they will sell like hotcakes.
Mike
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