The only problem with the tax credit marketing is that most people who need the full $7500 credit won't get it, you have to pay at minimum $7500 in federal income taxes, then on top of that your other deductions and exemptions that already produce a credit get in the way. This isn't a refundable credit, its a non-refundable credit.
Of course I'm not in the US, but it is my understanding that US tax law is as follows: if you pay $5,000 in federal income taxes this year, and you typically get a nominal amount, like $1,000, back already through other deductions, exemptions, credits, etc. then your net paid is $4,000. You can claim the US tax credit on that remaining $4k and get $4k back. The problem is, if you've got a job that makes a more modest US$30,000 then you're not paying anywhere near $5,000 in taxes. You are already getting rebated back most through other credits. A matter of fact, you might be paying only a few thousand in taxes after other deductions, exemptions, etc.
In other words, the people with lesser means and income get virtually no credit, or maybe only a thousand or two. The US has setup an EV tax credit that enhances wealth. You already have to make $70-80,000 a year to claim the full amount and get it back, which are people who can already afford an EV even without a credit. That doesn't sit well with me. The people who NEED this credit are lower income folks. Then again it only works for certain models and certain numbers sold, before you get no credit or reductions in ability to file a credit. The US electric vehicle tax credit, frankly, sounds like a mess.
Our federal tax credit here in Canada is fully refundable. It is independent and separate from what you pay and get back, so in other words if you have $35k annual income, and if you want an EV, our $5,000 federal tax credit will give you $5,000, period, for that year of purchase. It won't be tied to your other tax benefits and credits or payments. So if you're already getting a $1,500 refund due to other exemptions and credits, you will get $5k on top of it, for a total of $6500 back for that tax year that you purchased an EV. It helps everyday people more. Now, if only Kandi would enter the Canadian market so I may put this $5k EV tax credit to use.
Personally, I had a job that made $50,000CAD and due to COVID I got knocked down into the $30k range. I figure this year I might be making $35k, but I'm still in the market for an EV as I've saved for years. I won't be buying an overpriced vehicle, but I could afford a K23. I really could benefit if they'd just enter the market.
When things normalize, I am sure I can return to full income in the next year, so I certainly want an EV sooner rather than later.
Of course I'm not in the US, but it is my understanding that US tax law is as follows: if you pay $5,000 in federal income taxes this year, and you typically get a nominal amount, like $1,000, back already through other deductions, exemptions, credits, etc. then your net paid is $4,000. You can claim the US tax credit on that remaining $4k and get $4k back. The problem is, if you've got a job that makes a more modest US$30,000 then you're not paying anywhere near $5,000 in taxes. You are already getting rebated back most through other credits. A matter of fact, you might be paying only a few thousand in taxes after other deductions, exemptions, etc.
In other words, the people with lesser means and income get virtually no credit, or maybe only a thousand or two. The US has setup an EV tax credit that enhances wealth. You already have to make $70-80,000 a year to claim the full amount and get it back, which are people who can already afford an EV even without a credit. That doesn't sit well with me. The people who NEED this credit are lower income folks. Then again it only works for certain models and certain numbers sold, before you get no credit or reductions in ability to file a credit. The US electric vehicle tax credit, frankly, sounds like a mess.
Our federal tax credit here in Canada is fully refundable. It is independent and separate from what you pay and get back, so in other words if you have $35k annual income, and if you want an EV, our $5,000 federal tax credit will give you $5,000, period, for that year of purchase. It won't be tied to your other tax benefits and credits or payments. So if you're already getting a $1,500 refund due to other exemptions and credits, you will get $5k on top of it, for a total of $6500 back for that tax year that you purchased an EV. It helps everyday people more. Now, if only Kandi would enter the Canadian market so I may put this $5k EV tax credit to use.
Personally, I had a job that made $50,000CAD and due to COVID I got knocked down into the $30k range. I figure this year I might be making $35k, but I'm still in the market for an EV as I've saved for years. I won't be buying an overpriced vehicle, but I could afford a K23. I really could benefit if they'd just enter the market.
When things normalize, I am sure I can return to full income in the next year, so I certainly want an EV sooner rather than later.
