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Discussion Starter · #1 ·
This was posted on VWIDTalk. Not sure if this is the best spot to post but figure it was relevant to future Ioniq 5 owners.


From astrosgp on reddit:

Tonight 645 pages of tax legislation dropped that is a first draft of language to be included in the reconciliation bill that the Democrats are trying to pass later this year. Of course, all of this is subject to change, but highlights from my skimming are below:
New EV credit that is the sum of:
  • $4,000 base amount
  • $3,500 if the EV has a battery of at least 40kWh
  • $4,500 if the final assembly occurs at a domestic, unionized plant
  • $500 if at least 50% of components and battery cells are manufactured in the US.
The credit is now refundable, and can be remitted to the dealer at the point of sale. The credit also has an income limit, but only phases out above incomes of $400,000 Single/$800,000 MFJ. There are also new MSRP restrictions, so any EV above the following MSRP's is ineligible for a credit:
  • $55,000 for a sedan
  • $64,000 for a van
  • $69,000 for an SUV
  • $74,000 for a pickup
There would also be a new credit for used EV's of up to $2,500. The sale price of the used EV would have to be less than $25,000, and would phase out for buyers over $75,000 Single/$150,000 MFJ.
It looks like this would all take effect in 2022, and replace the existing credits. Here is the link in case anyone wants to read and discuss (starts on p. 282): https://waysandmeans.house.gov/site...ans.house.gov/files/documents/SUBFGHJ_xml.pdf
 

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If this does pass before the end of the year (and the 5 doesn't start sales until January), this will be the deal breaker for me. I'm relying on the full tax credit for this car.

Based on the spec sheet, what is being offered in the SE trim with a $4k rebate would not interest me.
 

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If this does pass before the end of the year (and the 5 doesn't start sales until January), this will be the deal breaker for me. I'm relying on the full tax credit for this car.

Based on the spec sheet, what is being offered in the SE trim with a $4k rebate would not interest me.
According to the draft posted above you would get $4,000 for the car and $3,500 for the larger battery. That’s the same $7,500 offered now.

The Limited could be priced over the cap here in the U.S. I could see Hyundai trying to get it to $54,999 to keep it under the cap, but I doubt it. I expect that configuration to hit almost $60,000 USD.
 

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Discussion Starter · #4 ·
I believe the Ioniq 5 would qualify as an SUV in this case. Only the TM3 and Polestar 2 are sedans under $55,000.
 

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so Tesla Model Y qualify for $7500 , hmm, Y might be my choice instead of ioniq.
That would be the most significant change. I think it would put additional price pressure on the Ioniq 5 or Tesla will just raise prices even more. Or most likely a bit of both.
 

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so Tesla Model Y qualifies for $7500, hmm, Y might be my choice instead of ioniq.
Tesla's plants are not unionized, that's not really helpful to most consumers. So far the only unionized made EV's in America are:
  • Chevy Bolt
  • GMC Hummer
  • Cadillac Lyriq
  • Ford 150 (Electric)
If Ford were smart, build the Mach E in the US to attract more customers.
 

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2021 Chevy Bolt, reserved Ioniq 5
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On page 288 it states the auto must be manufactured after December 31 2021 or after the date the bill takes effect - whichever is later. This bill does not have a union bonus - i.e. the Tesla $4,500 disadvantage. Well at least as far as I can find.
Oops. On page 293 domestic content requires a union facility – you loose Tesla.
Another blow to Tesla is on page 298-9. For the credit to be used by the dealer to reduce the purchase price it must be a “dealer”. It cannot be done by the manufacture.
But who know what the final bill will be.
 

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Not just Tesla, that bill as written also hurts Japanese car makers who have (non-union) plants in the states. The bill strongly favors GM, Ford and Chrysler.
 

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The Emperor (of EV's) Strikes Back
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