EV Tax Credit Changes Have Shuffled EV Sales Rankings

by Chris Teague

March 15th, 2023 1:03 PM

ev tax credit changes have shuffled ev sales rankings

Changes in the EV tax credit rules have been confusing and made it hard to determine which cars are eligible for credits. Some automakers argued that the rules would unfairly harm their business and ability to compete, and we’re now starting to see how some of the changes are shaking out. Automotive News reported that the top eight EVs in the U.S. in January were built in North America, while Hyundai and Kia fell back.

The rule changes have so far benefitted Tesla, Ford, and Volkswagen since the German automaker moved some ID.4 production to its Chattanooga factory in 2022. At the same time, the Hyundai Ioniq 5, which was previously selling in the number-seven spot, dropped to ninth, and the Kia EV6 was knocked out of the top ten altogether from its previous spot in eighth.

Many automakers are scrambling to get a production foothold in the U.S. after the Inflation Reduction Act updated EV tax credit rules to include a final assembly location in North America. Audi, Mercedes-Benz, and others have moved or plan to move some manufacturing here to qualify for credits.

Hyundai and Kia will eventually get things together, but another part of this story is the growth that EVs have seen in the U.S. market. Though still in single-digit percentages, new EV registrations have grown 74 percent from 2022 to 7.1 percent of the U.S. light vehicle market.

[Image: Ford]

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#Ford #VW #Tesla #Hyundai #Kia #EVTaxCredits

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19 of 62 comments

Lou_BC on Mar 15, 2023
Tax credit:
1. an amount of money that can be offset against a tax liability.
“What should be done is for anyone who is going to use the golf cart tax credit to name which American will be paying for the user to have free money.”

People need to get their facts straight. If one is supposed to pay 10k in assessed taxes and only needs to pay 5k due to a "credit", no one else is paying for your credit.
It's your own money the government is letting you keep. That in itself is a different debate.
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- See 6 previous
- Art Vandelay on Mar 15, 2023
  
  Ding ding ding. The sad fact is most of these whiny little b!+ches complaining about “MuH TaxEs” have negative rates or are oldsters that took every credit and then some in rout to racking up all this debt. Sorry, if I ever take that EV credit it doesn’t mean you clowns are subsidizing me. It means I am subsidizing your freeloading Kiester a little less. Now drink another Bud Heavy, take a drag on your Marlboro and go back to watching The Bachelor
  
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- 28-Cars-Later on Mar 15, 2023
  
  "It's your own money"
  Use it when you need it! 877-CASH-NOW.
  
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- Jeff S on Mar 16, 2023
  
  Exactly the Government is not handing you the money it is a tax credit against the taxes you owe and if there is any credit left it is not refundable meaning you don't get it back as a refund. Nonrefundable Tax Credit means you cannot get a refund on excess credits after they are applied to the tax liability. A Refundable Tax Credit means after the credit is applied against tax liability any excess credit left is refunded to the taxpayer. Very few tax credits are refundable most tax credits are nonrefundable. The credit in question is your money you already paid for the EV. Makes me wonder what they teach in schools and colleges since the time that I attended and graduated from high school and University.
  
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- EBFlex on Mar 16, 2023
  
  “People need to get their facts straight. If one is supposed to pay 10k in assessed taxes and only needs to pay 5k due to a "credit", no one else is paying for your credit.”
  Absolute BS. The government is still going to get their money. They aren’t going to take a “hit” so you can drive a government car.
  
  And can anyone answer the very simple question of, if there is such insatiable demand for government cars, why are tax credits needed? Frankly, people that choose to buy a government car should be taxed DOUBLE on it. Then we can recoup some of the money wasted on all the necessary infrastructure updates jammed through in the Inflation Nonreduction Act. Not only are we paying for the tax credits (however indirectly) but we also have to pay for the infrastructure.
  
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- FreedMike on Mar 16, 2023
  
  @Lou: bingo. Once upon a time, there wasn't a tax break conservatives didn't like.
  
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- Lou_BC on Mar 16, 2023
  
  "if there is such insatiable demand for government cars, why are tax credits needed?"
  If you own a pickup with a GVW greater than 6,000 lbs with 6 ft box or longer and use it for business you can write off the entire amount. That isn't the case with cars. According to you, that should be unnecessary.
  
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- Art Vandelay on Mar 16, 2023
  
  Why do you need a tax break for the interest you pay on your mortgage? Would you live outdoors otherwise? Why do people need a tax break on their 3/4 ton pickup that they "use for business?" And nobody has answered why in the world I should pay taxes so you can get a break on your kids. Seems like if I'm gonna pay for em' maybe I should get to bang your wife too.
  
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- Art Vandelay on Mar 16, 2023
  
  “The government is still going to get their money”. Good. Maybe they can get some from the folks with negative tax rates instead. We get it though…you don’t want your little gravy train derailed.
  
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- EBFlex on Mar 18, 2023
  
  "If you own a pickup with a GVW greater than 6,000 lbs with 6 ft box or longer and use it for business you can write off the entire amount. That isn't the case with cars. According to you, that should be unnecessary."
  So you can't answer the question. Got it.
  
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Art Vandelay on Mar 15, 2023

You are welcome for your mortgage interest credit and your child tax credit (and probably your “earned” income credit.) Why I am forced to subsidize your trailer and all your fnck trophies is beyond me. Good to know if I buy a new EV that I’ll subsidize them a little less this year. Given statistics on who buys EVs this is likely the case in most instances

1 Reply
28-Cars-Later on Mar 15, 2023
1. Mortgage Interest Credit... what black magic is this? Looking into it, it only reinforces my second point.
2. The system prior to but especially after 2008 is complete fraud and taxation only now exists as a control and punishment mechanism. They have already demonstrated they will print to create whatever genocide/communism/dystopia is in the end game and inflation will only get worse as a consequence. You "voted" for it Amerika.
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- Jeff S on Mar 16, 2023
  
  No a tax system exists to fund the Government and various functions of the Government which benefit the citizens.
  
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- EBFlex on Mar 16, 2023
  “The system prior to but especially after 2008 is complete fraud and taxation only now exists as a control and punishment mechanism. They have already demonstrated they will print to create whatever genocide/communism/dystopia is in the end game and inflation will only get worse as a consequence. You "voted" for it Amerika.”
  
  Its unfortunate how correct you are.
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- FreedMike on Mar 16, 2023
  
  Right, tax breaks are designed to create genocide, communism and dystopia. C'mon, 28.
  
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- Lou_BC on Mar 16, 2023
  
  "taxation only now exists as a control and punishment mechanism"
  There is truth to that statement. I'd rather a tax credit on an EV than not having a choice.
  
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- VoGhost on Mar 16, 2023
  
  They don't even have the guts to name Obama when they blame him for their pathetic lives.
  
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- Art Vandelay on Mar 16, 2023
  
  I blame him for plenty. He lied on the wars for example. At least Biden kept his promise on that even if the actual withdrawal was a tactical blunder that will offer a case study at all levels of officer training in what not to do and he hasn’t held anyone accountable. Then again, he never said it wouldn’t be Saigon 2.0 I guess
  
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VoGhost on Mar 16, 2023

There sure are a lot of comments from people who hate to see great manufacturing jobs returning to the US.

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- Art Vandelay on Mar 16, 2023
  
  I don’t know. All I read on here is how difficult they are and management has the gravy.
  
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- EBFlex on Mar 18, 2023
  
  "There sure are a lot of comments from people who hate to see great manufacturing jobs returning to the US."
  
  Show us who said that.
  
  Like