Eligible GM EVs To Get Tax Credit Back As Senate Passes Bill
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The U.S. Senate has approved a legislative package containing roughly $369 billion worth of climate and energy spending, paving the way for the federal government to implement improved purchase incentives for electric vehicles built in North America. The legislation still needs to pass the House before being signed into law.
The Inflation Reduction Act of 2022 contains tax, climate and health-care spending and is described as a somewhat slimmed-down version of the $2 trillion US climate and social spending package that President Joe Biden had put forth previously. Part of the $369 billion in climate spending will go toward a new EV incentive program that will end per-manufacturer limits for the $7,500 tax credit, eventually allowing eligible GM electric vehicles to once again qualify for the government rebate.
“General Motors welcomes the U.S. Senate’s passage of the Inflation Reduction Act that includes provisions to accelerate the adoption of electric vehicles and strengthen American manufacturing and jobs,” said the automaker in a statement. “GM is already making historic investments in the U.S., and this legislation will help drive further investments in American manufacturing, clean energy and sustainable, scalable, and secure supply chains as we work to establish the U.S. as a global leader in electrification.”
Only vehicles built in North America will be eligible for the tax credit. Biden’s original spending plan outlined a more restrictive purchase incentive program in which EVs would have to be built in the U.S. to qualify, with more money available to EVs built in unionized facilities and that feature a U.S.-built battery pack. This latest version of the bill allows for vehicles to be built in Canada or Mexico, although EVs with battery materials sourced from Chinese suppliers will be excluded from receiving purchase incentives after 2023. The bill also sets a starting price cap of $80,000 for trucks, vans and SUVs and a cap of $55,000 for passenger cars.
A lobby of domestic and foreign automakers that included GM attempted to have the bill modified to remove certain requirements for battery materials sourcing. In addition to disallowing Chinese batteries, provisions in the proposed EX tax credit bill would require automakers to meet rising requirements for the percentage of battery materials and components sourced from North American suppliers by 2023. Some automakers feel the timeline to meet these provisions is not possible given the limited infrastructure that currently exists in North America for battery materials mining, processing and production.
The Alliance for Automotive Innovation, an auto industry lobbying group that represents major auto companies and suppliers, said the bill is a step backward with regard to promoting EV adoption in the U.S., as the majority of EVs on the market currently would not be eligible for the credit due to where they are built, or where their battery materials are sourced from. John Bozzella, the chief executive of Auto Innovators, said the bill “will also jeopardize our collective target of 40-50 percent electric vehicle sales by 2030,” as Americans would have fewer choices when it comes to buying an EV.
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This Bill is going to hire 87k IRS agents. Now if that doesn’t scare anyone here, you may need to check your pulse.
I’ve tried to call the IRS about money they sent that they should not have to me last year. After literally dozens of calls where I am waiting for an agent for an hour only to be told call back later, they need to hire 87K agents. They are unbelievably understaffed. I finally talked to an agent, who told me to send a letter, which I did. 9 months later they confirmed they agreed with me.
If you think those 87,000 extra agents are going to help with customer service, I have some sweet ocean front property in Arizona I would love to sell you.
They should have 0 staff……
@USA 1
Why would it be a bad thing that we are basically doubling the IRS?
Momolos – because it can be weaponized like Obama did when he used it to go after his opponents. Just ask Lois Lerner. Now Pedo Pete and the Democrats just made them that much stronger.
You do know that it was Trump that wanted to go after his enemies (basically everyone who did not worship him) with audits right?
Also Nixon tried to do the same thing.
When the IRS was investigating 501 C4 groups under the Obama administration they investigated both conservative and liberal groups for violating the “social welfare” clause of the regulation.
Perfectly legal but the GOP lied about it because lying is their business model.
What the IRS was trying to do was make sure those getting a tax free status were doing what they claimed to be doing in their docs because there was a lot of evidence that they were engaging in political activity. Just as churches cannot engage in political activity, so too non-profit orgs cannot engage in political activity.
It was all perfectly legal. The GOP weaponized it as usual with lies.
Proof please
Because less government is the answer to this country’s woes.
For those whining about the IRS please note that those cheating on their taxes are contributing to the massive deficits we have.
I would also note that the vast bulk of tax evasion is committed by those who have the most to hide i.e. the wealthy. The reason they get away with this form of white collar crime is exactly why the wealthy rarely are held to account for crime-They have the money to overwhelm underfunded government offices.
THAT is why the GOP endlessly cuts enforcement budgets for white collar crooks while boosting spending to imprison the poor.
If you think tax collection is a crime maybe think about what nonsense you were told that got you to this point.
Beach, the real crime is how out of control taxation and spending is. Clean that up and then maybe you wouldn’t need more agents breathing down people’s necks.
We should stop them from hiring those 87000 agents with this promise, that if you are hired, exspect to be fired in 6 months. 2 can play at this game
I’m not concerned, but then again I don’t cheat on my taxes.
Is it true that the new EV’s will come standard with turn signals and virtue signals?
The whole bill is a step backwards and should be renamed what it really is- the inflation increasing act of 2022.
This bill is absolute junk period.
And your reasoning?
Government initiatives are exactly what gave us the things we love in our country and economy.
Interstate highways, rural electrification, dams, ports, canals, airports, modern pharmaceuticals, the internet, modern aircraft, and so on.
Libertarians love to hate on government but studiously ignore what the “free market” does to them.
This site is dedicated to GM info yet it was the free market and GMs idiot management that resulted in its bankruptcy. It was government intervention that SAVED GM.
If you want minimal government, you get Somalia. If you like the idea of security you need to learn that security is far more than warplanes and missiles. It is a robust economy with good wages for all. Not the situation we have today where the wealthy complain that they can’t good service at their restaurant because people wont work for rotten pay and no benefits in a city that demands $2000/mo for a sketchy apartment.
Beachr,
There is a fundamental difference between taxing the citizenry and using those funds to build/create all the things you list and taxing the people to do what the proponents of this bill intend to do. You indicated that citizens have been taxed for:
-Interstate highways
-Rural electrification
-Dams
-Ports
-Canals
-Airports
-Modern pharmaceuticals
-The internet
-Modern aircraft
Without addressing the validity of each of those and instead accepting the list as accurate, what’s the common denominator for each category listed? They are all items for the PUBLIC GOOD. I have no problem with paying taxes to my government to support the construction of roads, bridges, ports, public parks, national museums, national parks, dams, pharmaceutical research, etc. as we all collectively benefit from those expenditures. Obviously I cannot build a road like Route 66 from Chicago to L.A. I doubt you could either but collectively we can and it’s beneficial to us both individually and to the nation if we do. Likewise we can’t form an army or build an aircraft carrier and fill the decks with state-of-the-art airplanes. To do those things, we all need to pay taxes and thereby fund our pro-rata share of these worthwhile endeavors. I have no problem with any of those things. I’ll happily pay my part and be proud of what can do together.
That’s not what this is though. This is taxing the American people so as to help pay for new cars for INDIVIDUALS. We’re not all going to be able to use these cars; only a select few. I am totally opposed to paying taxes to help my neighbor buy a new SUV regardless of how it’s powered. I’m opposed to being forced to pay off his student loan or put new energy-efficient windows in his house. All of that benefits single Americans and taxing everybody to pay for things for individuals that they should do for themselves is wrong.
And what’s more cringe-worthy is establishing an armada of 78,000 new IRS agents to enforce compliance with these new laws that will literally take money from the poor to give to the rich. It’s trite to say this but the legislation is indeed un-American and does not deserve passage. So let’s all chip in to pay for the USS George Washington but if, George, the cardiologist, wants a new EV, let him pay for it himself.
Fully agree 100 percent. If you want an EV pay for it your self not the government with our taxes.
Like any business, efficiency and money management is paramount. The government is at the bottom of the efficiency/spending list and you know it.
This whole thing is designed to screw us over and can’t be accomplished considering our current state of affairs with materials sourcing.
So, you’re saying it’s better to do nothing about materials sourcing? You have to start somewhere.
Ummmm, how about waiving regulations, opening more drilling, and lowering taxes. Right now the NHTSA is doubling down on truckers, the COVID stay at home pay is keeping dock workers from showing up to work, and because regulations, much of our stuff is made in China where they are locking down again for “Covid” though we know it’s all about control in their collapsing country.
Remember that magic wand that Bama mocked the last guy about????? And turns out he actually had???? Use it!
But in all honesty, how does throwing money at companies to make chips and plastic parts fix the supply chain when it will take 5 years to build these factories???? 1 year for zoning, 2 for an archeological survey, 18 month for approval by the BLM and Native American repatriation service and 6 months to build.
“Screw us over”?
In what way? The requirement that EVS be built in the US or countries we have MFT status with means jobs for US workers. The largest producers all have plants in the US.
Sourcing locally as much as possible increases supply security. The fact that we still have overseas sourcing for some materials is just a fact of where we are.
I would note that also passed the CHIPS act to incentivize chip production in the US that had migrated offshore because the US companies that invented the tech CHOSE to offshore despite the warnings of many concerning security and supply. But the siren song of cheap labor, supported by “free market” legislators enjoying fat donations, was too much to resist.
Thus we are here where the government has to fix the consequences of bad choices with a lot of money.
Doing nothing as the GOP advocates is a de facto surrender to the Chinese.
China is currently the leader in EV investment and production. They recognize the immense economic opportunity for sustainable energy and they are driving their economy to be the owners of the global supply of the tech that will displace oil, gas and coal.
All the anti-EV/alt energy policies is a short sighted position for short term electoral gain based on lies.
When we switched from horses a lot of people didn’t like it either. My great grandfather owned a livery business that imploded when cars came to the city. But the government built roads, subsidized oil exploration etc. Things no private business would do because business is risk averse.
colbalt is mined in China… EV batteries are manufactured in China… Win-Win for China while Biden strangles USA energy independence.
There are also 9 states with proven Cobalt deposits of 1,000,000 tons. There are also proven Lithium deposits in California (GM now owns a Lithium mine there)
The problem is its just cheaper to buy unregulated minerals from China.
Do some actual research, don’t just parrot what you read.
Interesting that Ford Authority and others have stated that Ford will be buying their batteries From the Chinese Company CATL.com based out of China. There is no parroting going on here… YOU HAVE A NICE DAY.
Look, Forbes confirmed this… https://www.forbes.com/sites/samabuelsamid/2022/07/21/ford-makes-major-commitment-to-catl-lithium-iron-phospate-ev-batteries/?sh=5a9d87b923dd
https://fordauthority.com/2022/05/north-american-ford-evs-could-pack-catl-batteries-in-the-future/
https://insideevs.com/news/602248/china-catl-delays-us-battery-plant-news-pelosi-taiwan/
That does nothing to disprove my point.
If GM can build batteries herein the USA, so can Ford.
That equals American jobs. The resources are here, the jobs should be too.
Leave it to the government to spend our money to try to increase sales of EVs. You know, the EVs the companies cannot build fast enough.
Might want to start by working on power generation and the electrical grid.
The more involved the government gets, the worse it is going to be.
Remember, the 9 most terrifying words in the English language are – “I’m from the government, and I’m here to help.”
They should have buried those words along w Reagan.
I think we can guess who the responders are here that support Benedict Donald.
Well it’s a great deal more than who support Benedict Joe judging by all the thumbs down he garners along with his all time low approval rating!
This is great it’s another tax on the working people. Why does the working class have to subsidize EVs for the rich.
Dennis – you can use that same argument for the tax payers paying off college loans. Why does a truck driver have to pay off the college loan for a lawyer?
Dennis,
They shouldn’t!
Call you Congressman.
Where is the tax?
What BS are you listening to?
Show us the facts because right now you are peeping GOP talking points which are absolutely false.
The tax on corporations that pay zero currently and enjoying benefits tailored specifically to their wishes now can pay for that.
Subsidies for EVs for lower priced cars both new and used help the working class. The working class needs the subsidies. The wealthy buying an EV Hummer wont get it.
By the way, it was the GOP who voted wholesale against a bill to help the veterans suffering from the effects of the burn pits in Iraq and Afghanistan and just yesterday voted to deny a cap on insulin prices.
They are the ones making sure the working class have to pay more for their health care and kicking vets in the teeth. Every policy they support is designed to ensure the working class has less power, less voice, fewer labor protections in the workplace, cuts to Medicare and Social Security because seniors are “getting too much”.
Get your info from somewhere other than Fox News. They are but a PR firm for the GOP.
So how many of the “working class” can (or will) pay >$55k for an electric car or >$80k for an electric truck? Not many, I suspect. So, the comment is correct that the working class, through their tax dollars, have to subsidize EV plaything purchases by the wealthy. Simply wrong.
You have misunderstood the bill @offmylawn it is exactly the opposite of what you have stated. The rebate is for cars under 55k and suv/trucks under 80k. Above those amounts there is no subsidy. So it is in fact to help the “working class” in being able to enter the ev market by subsidizing the cheaper evs.
That’s assuming that the “working class” you mentioned have enough federal income tax liability to receive the credit, right?
Your arguments are lost when you give one side a pass and ignore the other. Your true colors come out with each post blaming the “GOP”. Sorry, it’s just too easy to see your bias and favoritism toward big government.
This legislation may well be a fait accompli but it is, at this point, not law as it still must also be approved by the House. If there were to be massive pushback from the populace, as I think there should be, it might not move forward.
I personally think, and have said before, that it is highly inappropriate for our government to tax everyone and selectively give that tax money back to certain citizens to purchase an EV. The primary issue I have is that at an average of $65,000 each, EVs are priced beyond the reach of most Americans so only more affluent individuals can afford to buy them. Yet, for those more fortunate people, lower income individuals will be subsidizing the cost.
The lower income guy buying a Corolla gets no government help yet the more affluent guy buying one of GM’s 9,000 pound EV trucks can potentially get a government subsidy. Taken in totality, the Corolla is likely better for the environment. It makes no sense that politicians have decided to subsidize this, not with their money, but with the people’s money. And they’re hiring an army of new IRS agents to make sure they get the money from everyone to be able to hand out to the few.
I’ll be letting my Congressman know how insane and unfair I think this is.
Not to mention giving tax breaks for vehicles built in Mexico.
Bingo.
Ci2Eye – Pelosi will make sure this train wreck of a bill passes. Her wealth and her keeping depends on it.
Speaking of Depends. THANK YOU JOE BIDEN!!!!!! You are the worst President ever.
What a witch she is
This Bill if completely passed unchanged in the House and then the President signs it, will completely help the Big Three in the Long Run.
Stop thinking Short Term. Chinese manufacturers want to sell vehicles here very badly. This will force them to utilize Minerals from here and to Build Factories here as well. We shall see in a couple of years in my opinion.
Protect Good Paying American jobs and add to it I say!!!
Talking about jobs coming back, a car company called Vinfast is building an several plants to build electric vehicles in Chatham county North Carolina. It’s a Vietnamese company that is y being built in the same land of a closed Allied Chemical plant. Vinfast will have the plant running full production by the end of 2024 for 7500 fortunate people. Production workers are starting at $19.50 and will be at over $23.00/ hour after 6months. I teach vocational programs at the local college and there are many people hoping to work there. If China build a plant here to for whatever and pays good who wouldn’t take it to better there financial status. Who knows maybe they’ll buy a Chevy Bolt for our local GM dealer.
Momolos, we shall see in a couple of years? Haven’t we seen enough already? This resident, yes resident of our White House is a total failure. Let me remind you what took place in the last18 months or so.
Day 1) Stopped the wall at the southern border that left unfinished material that was already paid for just laying around and, we lost ” Good Paying American Jobs”. Canceled the Key Stone pipeline, now we pay the highest price for gas in my lifetime, I’m 61, and we lost “Good Paying American Jobs” He opened Nord Stream 2 giving Russia “Good Paying Russian Jobs”. Shall I go on with the war he created because of his weakness, or the 13 solders that died because of his Dementia and since when does a country get away with threatening the United States of America. And you want to wait and see!
Everyone wants to complain, but don’t bat an eye when we send enough equipment to Ukraine, one might have actually thought we had actual boots on the ground….
This bill will help EV sales, solar panel sales and help incentivise BUILD IN AMERICA!!! Thank you Congress and President Joe Biden. Finally a step in the right direction!!!
You mean cars and trucks like the Blazer?
And of course the entire Buick line…
Fully agree 100 percent. If you want an EV pay for it your self not the government with our taxes. How is road tax going to be assigned to EV owner? Clean air, what are air planes doing to that?
For Ohio I pay an extra $200 every time I renew my tags yearly for an EV. Far more than you would pay gas tax for normally.
So, the automakers lobbied the government for EV incentives. If they are so great & green they should sell themselves. Without being subsidized by John Q Taxpayer.
Ok folks, Lets not politicize this site…I know, i know we have the first amendment. but
please lets enjoy this site for what it is. What we all love, cars. — whether electric or combustion we do have
the individual choice!!!!!!! enjoy it here
now carry on
WHEN IS GM GOING TO START DELIVERING THE LYRIC ,AND WILL IT HAVE A TAX BRAKE ?
Pete, start from the top where it says 68 comments. Your answer is somewhere in between.