jeffcarroll78s2
Posts: 14
Joined: Sat Dec 17, 2011 7:36 am
Location: Lebanon, Ohio (near Kings Island)

Reduced Tax credit/changes this year?

Thu Sep 29, 2016 12:22 pm

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
Posts: 227
Joined: Wed May 18, 2016 6:05 am
Location: Great Mills, Md.

Re: Reduced Tax credit/changes this year?

Thu Sep 29, 2016 12:50 pm

2015 Nissan NV200
2012 I-Miev SE Premium
2009 Mazda 5
2017 Toyota Prius Prime

mdbuilder
Posts: 227
Joined: Wed May 18, 2016 6:05 am
Location: Great Mills, Md.

Re: Reduced Tax credit/changes this year?

Thu Sep 29, 2016 12:54 pm

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
2015 Nissan NV200
2012 I-Miev SE Premium
2009 Mazda 5
2017 Toyota Prius Prime

PV1
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Joined: Fri Apr 27, 2012 4:22 pm
Location: Pittsburgh, PA
Contact: Website

Re: Reduced Tax credit/changes this year?

Thu Sep 29, 2016 1:30 pm

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.
"Bear" - 2012 Diamond White Pearl ES with QC - 2/21/2013
Solar-powered since 10/10/2013

"Koorz" - 2012 Cool Silver Metallic ES with QC - 1/5/2015

2017 Bolt EV LT in Orange with QC - 7/31/2017

Driving electric since 2-21-2013.

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