Top News
Ohio looks to finish strong, San Diego State looks for rebound in Frisco Bowl  ||   What Santa does when he's not delivering presents  ||   How latest Fed rate decision affects rates on credit cards, mortgages, savings accounts  ||   'The Voice': How Kelly Clarkson hid a 'raspy' voice, and what else you didn't see on TV  ||   Twitter is roasting Will Smith as the new 'Aladdin' Genie: 'Sinbad on a diet'  ||   Royal Christmas: How are Prince Harry, Meghan, Prince William and Kate celebrating?  ||   Upendra Kushwaha to join Congress-led grand alliance in Delhi tomorrow  ||   President Trump and first lady Melania release 2018 White House Christmas portrait  ||   Forbes names 2018's richest celebrities: George Lucas, Oprah, Kylie Jenner make list  ||   NFL could come calling for Oklahoma coach Lincoln Riley  ||   US teams to play in European snow volleyball tour  ||   Congress-led alliance intact in Telangana, to fight Lok Sabha polls together  ||   Police, schools had no duty to protect Parkland school shooting victims, judge rules  ||   Government aware of reports on Pakistan expanding nuke weapons capability  ||   Congress struggles to appoint Speaker in 15th Madhya Pradesh state assembly  ||   Senate Majority Leader Mitch McConnell to offer bill to avoid federal government shutdown  ||   President Trump orders all US troops out of Syria, declares victory over ISIS  ||   How to drink like an Icelander for the holidays  ||   Senate Majority Leader Mitch McConnell to offer bill to avoid federal government shutdown  ||   This easy eggnog French toast can be made the night before  ||            

Just days left to buy a Tesla if you want $7,500 federal tax credit  2 Months ago

Source:   USA Today  

The handwriting was on the wall last July when Tesla Inc. (NASDAQ: TSLA) reached the milestone delivery of its 200,000th all-electric vehicle. That was the good news.

The less-good news was that the company's federal tax credit to buyers of $7,500 would be cut in half (to $3,750) on January 1, 2019, cut in half again (to $1,875) on July 1, and disappear altogether on January 1, 2020.

On the company's website this morning, this note appears on the page related to the all three of its models:

All orders placed by October 15, 2018 will be delivered by the end of the year and eligible for the full $7,500 Federal Tax Credit.

Tesla is just the first electric car maker to feel the impact of the reduction in the tax incentives that were passed into law in December 2010 for plug-in vehicles (hybrids like most Toyota Prius models don't qualify).

A bill was introduced in the U.S. Senate earlier this week that would end the tax incentives immediately for all automakers. The legislation also includes imposing an unspecified user fee on alternative fuel vehicles to mitigate the effect of their non-payment on the federal tax on gasoline.

A competing bill was introduced in the U.S. House last July that eliminates the delivery threshold for plug-in vehicles and replaces it with a 10-year period during which the incentive is paid for every car made. Even that wouldn't help Tesla much. The company delivered its first all-electric Roadster in June 2009.

The smart thing to do, of course, would be to raise the gasoline tax to pay for the carbon emissions of the internal combustion engines. The average passenger car on U.S. roads and highways emits 4.6 metric tons of carbon dioxide per year, according to the U.S. Environmental Protection Agency.

Depending on the targeted temperature change to meet the climate goals set out in the latest report from the Intergovernmental Panel on Climate Change, American consumers would have to pay between $10 and $5,500 per metric ton of carbon dioxide emissions. That's an essentially meaningless range of $46 to $27,000, or, in cost per gallon, $0.09 to $240.

The most significant question, of course, is what will Tesla CEO Elon Musk have to say (tweet) about the loss of the incentive. Neither bill in Congress does much, if anything, to return the federal incentive to Tesla buyers. That puts Tesla at a distinct disadvantage to BMW, Mercedes, GM and the rest when it comes to the price of a plug-in electric vehicle.

Predicting what Musk might say is a fool's game, but he almost has to say something.

24/7 Wall Street is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY.

More News
About Us Terms & Conditions Disclaimer
Advertise Contact
register and win

NRIS.COM is one of the premier NRI website that provides a range of resourceful services to Indian expats residing in the USA. Visiting the site you will find comprehensive information related to restaurants, casinos, pubs, temples, carpool, movies, education, real estate, and forums. The simple and easy to navigate format allows NRIs to gain information within a fraction of a second. Moreover, advertising through its column of Indian free classifieds in USA allow businesses to improve visibility of their brand.

MI NRI's Chat (0 Users Online)