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A $20k American-made electric pickup with no paint, no stereo, no screen

(www.theverge.com)
1321 points kwindla | 8 comments | 25 Apr 25 15:01 UTC | HN request time: 0s | source | bottom
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aidenn0 ◴[25 Apr 25 16:56 UTC] No.43795946[source]▶
For anyone curious, if you made a similarly sized gas-powered pickup with an i4 engine, it would be penalized more than a full-sized pickup for being too fuel inefficient, despite likely getting much better mileage than an F-150 because, since 2011, bigger cars are held to a lesser standard by CAFE[1].

1: https://en.wikipedia.org/wiki/Corporate_average_fuel_economy...

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mtillman ◴[25 Apr 25 19:10 UTC] No.43797478[source]▶
Fine print: The truck in the link is only $20K after government subsidies/rebates. So if the government gives my tax dollars to buyers of this truck, then it will cost $20K.
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Brybry ◴[25 Apr 25 19:26 UTC] No.43797655[source]▶
Electric vehicle tax credits are non-refundable tax credits meaning you can't get a credit for more than you owe. [1][2]

Which means no one is getting your tax dollars to buy vehicles (though there may be some infrastructure or manufacturing grants for companies).

[1] https://www.congress.gov/crs-product/IF12600

[2] https://www.irs.gov/newsroom/tax-credits-for-individuals-wha...

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1. anannymoose ◴[25 Apr 25 19:51 UTC] No.43797888[source]▶
So, should I wish to purchase a vehicle this tax year, I tell my HR to adjust my income withholding such that I owe 7,500$ come tax time and then reap the rewards?

Or is there more to the incentive structure?

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2. palmtree3000 ◴[25 Apr 25 20:07 UTC] No.43798019[source]▶
Withholding isn't relevant here. Non refundable means it can't cause the government to net pay you money: that is to say, it can't make your refund larger than your withholding.
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3. Brybry ◴[25 Apr 25 20:08 UTC] No.43798027[source]▶
The government still gives you back your money in a refund if you overpay them.

Though, of course, you don't earn interest on it while the government is holding it.

4. floxy ◴[25 Apr 25 20:13 UTC] No.43798075[source]▶
What you have withheld is not part of the equation. It is your tax liability that matters.
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5. anannymoose ◴[25 Apr 25 21:37 UTC] No.43798784[source]▶
I’m confused here, wouldn’t me underpaying on my income generate a liability that I can then claim this rebate on?
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6. anannymoose ◴[25 Apr 25 21:38 UTC] No.43798788[source]▶
Adjust my withholding to generate a debt to Th enticement that I claim the rebate on? I think you’re thinking the other direction.
7. floxy ◴[25 Apr 25 21:50 UTC] No.43798879{3}[source]▶
Let's make up an example. Let's say you earn $75,000/year and the tax rate is 10%. So you owe $7,500 in taxes. That is your tax liability. It doesn't matter if you have your employer deducting $144 from your weekly paycheck or $0 from your weekly paycheck.

https://apps.irs.gov/app/understandingTaxes/student/hows.jsp

8. nullc ◴[25 Apr 25 22:00 UTC] No.43798935{3}[source]▶
You can still get a refund with this tax credit, but it has to be a refund of taxes you paid through things like your payroll tax.

Non-refundable means that if the rebate drives your owed taxes below zero you don't get the negative tax debt back.

If you don't earn much money most of your paid taxes go to SS and medicare rather than income tax, so the rebate may not do anything for you. But if you make at least median income you should be able to fully use this rebate.

If you're retired and buy one of these trucks you'd be wise to realize $100k in investment gains in that year in order to fully exploit the tax credit.