Page 1 of 1

Phaseout of Federal tax credit for GM

Posted: Thu Dec 06, 2018 3:13 pm
by WetEV
https://insideevs.com/top-6-automakers- ... dit-limit/

So the phaseout starts. Full Federal Tax Credit of $7,500 (as far as I understand) continues to 1 April 2019, then reduces to $3,750 until 1 October 2019, then reduces to $1,875 until 1 April 2020.

Re: Phaseout of Federal tax credit for GM

Posted: Thu Dec 06, 2018 8:41 pm
by theothertom
I guess the law is the law, but Chevy's EV sales numbers are "inflated" due to the Volt. The Volt was good at the time, but only offered ~30 miles electric range. I wish the government would change the law so that only BEV's are counted. Oh well...

Re: Phaseout of Federal tax credit for GM

Posted: Fri Dec 07, 2018 1:26 am
by WetEV
theothertom wrote:I guess the law is the law, but Chevy's EV sales numbers are "inflated" due to the Volt. The Volt was good at the time, but only offered ~30 miles electric range. I wish the government would change the law so that only BEV's are counted. Oh well...


Plug in hybrids were a reasonable design choice in 2010. Batteries were far more expensive, and getting the most common commuting and other shorter trips on electric was a win. If gasoline price rose a bit, the Volt might have been a real winner. As it was, it was a gateway EV for a lot of people...

Battery prices below $300 per kWh put the squeeze on PHEVs and on conventional hybrids as well. Battery prices below $150 per kWh put the squeeze on ICEs.

Image

Re: Phaseout of Federal tax credit for GM

Posted: Fri Dec 07, 2018 2:18 pm
by theothertom
If I read the chart correctly, current US conditions for battery prices are around $200/KWh. Is that correct? IF so, that puts a 60KWh battery at $12K. I don't know what a gasoline engine costs but my thoughts are it's < $12K, which makes ICE a cheaper option. The chart compares EV battery cost to gasoline cost. There must be an assumption of electricity costs in the calculations that I missed. Anyway, I'm more interested in manufacturing costs. I believe when the price of EV's is about equal to ICE cars, people will adopt EV's a lot quicker.

Just as a data point, but a Kia Soul ICE MSRP is around 23K, while the Soul EV is around 33K. The 10K difference seems a bit high to me, but maybe it's because Kia is counting on customers getting the 7500 credit so the sticker shock won't be so bad ?

Re: Phaseout of Federal tax credit for GM

Posted: Fri Dec 07, 2018 2:36 pm
by WetEV
theothertom wrote:If I read the chart correctly, current US conditions for battery prices are around $200/KWh. Is that correct?


More like $150 per kWh.
viewtopic.php?f=11&t=155#p660

Tesla is claiming under $100 per kWh.

theothertom wrote:The chart compares EV battery cost to gasoline cost. There must be an assumption of electricity costs in the calculations that I missed.


Gasoline costs vary a lot. Electric costs don't from year to year, but can be rather different in different places. Assumption is national average.

theothertom wrote:I believe when the price of EV's is about equal to ICE cars, people will adopt EV's a lot quicker.


Yes, and this will vary somewhat by size of vehicle, but is going to start happening around 2025 if price trends continue.


theothertom wrote:Just as a data point, but a Kia Soul ICE MSRP is around 23K, while the Soul EV is around 33K. The 10K difference seems a bit high to me, but maybe it's because Kia is counting on customers getting the 7500 credit so the sticker shock won't be so bad ?


EV production is mostly battery cell supply limited. So why lower the price? Or advertise?

Re: Phaseout of Federal tax credit for GM

Posted: Mon Dec 10, 2018 4:51 pm
by AyeJay
theothertom wrote:I guess the law is the law, Oh well...


I urge everyone here to please sign this petition re:

-- Tell the Senate: Don't kill the EV tax credit.

-- Support an extension of the EV tax credit.

https://pluginamerica.salsalabs.org/ref ... ddfee81120

"We need continued support to help consumers make the switch to driving electric. The $7,500 federal EV tax credit is a key policy that must be extended to work for more drivers for a longer time frame. The original tax credit has been a successful incentive so far, but the EV market is far from fully mature."

Thank You,

AJ