The Expert Podcast

So 2022 brings some huge developments into the electric vehicle market first of all there's some um tax credits that are brand new for the year there's also some industry developments we're going to talk about all of those especially the the new requirements and also new developments for the irs for taxes uh even some maybe on used vehicles but first let's take a look at something that is a very overlooked but significant story about development of electric vehicle markets so a lot of people are waiting that electric vehicles need to be more mainstream but one of the holdups is the recharging versus refueling.

If i think about a tank of fuel versus a fast charge we're nearing a place where the business fundamentals on the fast charge are better than fuel and this is from bp british petroleum major gas station operator and they're saying that they're already delivering profit margins very close to those of traditional gas stations think about it everywhere you look you can't turn the corner and not find a gas station they're everywhere sometimes on a four-way stop there's one on all four corners ev charging stations are harder to find part of the reason is business economics if it's very profitable to have a gas station then they're going to be everywhere like they are if ev charging stations aren't as profitable no one's going to build them or not as much but the rapid rise in ev charging demand and profitability will have a huge expansion for companies like bp that have been losing money the tide is now shifting according to this article basically what it's saying is that the gas station operating companies are now seeing where they're going to be making money on pumping electricity versus pumping gas huge huge development so we'll see more charging stations soon.

What about taxes well they're also talking about there's a federal ev tax credit as we know and we'll take a look at that form here momentarily legislation was introduced that could have ev tax credit for used electric cars dubbed the affordable evs for working families act the bill would create a tax rebate of 2500 dollars how is that going to help the market or maybe even help you as a consumer well even if you buy a brand new electric vehicle or use one today if there's a tax rebate for that vehicle in the future that's going to increase your sales price your market value for that used vehicle right it's going to make that used vehicle be worth more in the future so you have higher resale value and the bill says a car has to be at least 2 years old and cost less than 25 000 so you have to make sure you're not trying to sell when it's too much money and also that the buyer has certain income requirements right you can't um if you make more than 75 000 for an individual or 150 for joint the eligibility would be phased down meaning you're going to get less than 2500 right be a big win for evs so this is something to keep in mind that resale value on used evs is probably going to be affected in a good way.

How does it work for new vehicles well here's the form 8936 for qualified plug-in uh vehicle credits you put in the vehicle you've purchased how much it costs what date you purchase it um if you have a business investment you put that calculation maximum credit per vehicle is 2500 on a new vehicle and you do all the the calculations and you attach this form to your tax return and you get the credit what are some of the requirements well they added two-wheel vehicles now not that there's too many of them but if there's a two-wheel vehicle like a motorcycle it's um it's it's uh it's allowed but the credit is no longer available for tesla or gm vehicles with four wheels why is that why is that well because it phases out if they sell enough cars how does that work well if the manufacturer has built and sold 200 000 vehicles the phase out then does 50 25 and then no credit after 200 000 vehicles for six months at a time two quarters two quarters two quarters right so what they're trying to do is to get manufacturers a head start on models well tesla and gm are already at the head start so that credit phase out is something to keep in mind as you're looking at vehicles there's other manufacturers are getting close to that.

Here's the requirements to make sure you qualify yeah you have to be the owner of the vehicle right if you lease the vehicle then the leasing company gets the credit hopefully they pass it along to you as part of your negotiation you have to place it in service during that tax year it has to be a street legal vehicle right it can't be an off-road vehicle the original use of the vehicle began with you this is for a new vehicle so remember used cars are going to be phased in at some point but for now the original use has to be you you bought it for yourself not to resell you can't be a flipper and it's a us-based vehicle right so those are some of the requirements that you have to abide by and it does no longer have to be certified by specific make and model that's something that used to be in the requirements before so these are some significant changes in the electric vehicle tax credit.

And it says what is the qualified vehicle definition it's a new vehicle with at least four wheels that is propelled to a significant extent by an electric motor that draws electricity from a battery capacity not less than four kilowatt hours and less than 14 000 pounds can't be a big truck right it's capable of being recharged from an external source of electricity so it's not a hybrid hybrids don't count so you can refer to these we'll put links in the description.

Also for 2022 we'll take a quick look at a couple of the new vehicles obviously the lightning is a highly expected truck that's going to be out soon um they already got 44 000 reservations in the first two days this is this is about a month and a half ago that this happened two months ago now uh the new audi a6 is going to be an interesting car hitting the market uh bmw and audi and porsche will have some new vehicles coming out in the next 24 to 36 months because a lot of these car companies are getting away from internal combustion engines only going to um ev the ford f-150 lightning looks just like an f-150 same body same little door step that it's always had citroen kind of a non-issue they're not going to sell too many of those cars hummer is going to come out with an ev not sure how well that will do it kind of looks they're trying to make that look like that new bronco but um so far the results of reviews aren't that great lucid is something that is a highly anticipated but it's it's likely that the final version is going to look significantly different from this prototype and then some highline cars maserati um pulstar which is um behind what volvo makes right now the xc90 has a plug-in for volvo fisker kia is going full bore with evs so that's an example of what's hitting the pipeline the next 24 months or so.

Most important thing is used car ev credits will have an effect domino effect on all cars even new cars so that's the news for 2022 for some new developments keep an eye on the channel for some more instructions on checking out batteries on use evs that's something very important even if you're going to get a 2500 credit you don't want to buy a vehicle that needs a 8 000 battery defeats the purpose so checking out the ev battery is still going to be important and keep an eye on the channel for more developments and you can subscribe or like to be included when the next video comes out.