Hummer EV1 ~ TAX INCENTIVES

bufflinks said:

As a “heavy vehicle,” the Hummer EV should qualify for the section 179 tax deduction when purchased and used for business purposes.

Section 179 Vehicles For 2023

Section 179 vehicles for 2023. Learn which types of cars, vans, and light trucks qualify for the Section 179 tax deduction.

www.balboacapital.com

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• Other heavy “non-SUV” vehicles and trucks with a cargo area at least six feet in interior length (this area must not be easily accessible from the passenger area.) To give an example, many pickups with full-sized cargo beds will qualify for a full deduction (although some “extended cab” pickups may have beds that are too small to qualify).

Section 179 Deduction for Trucks / Vehicles | Section179.Org

What Business Vehicles Qualify for the Section 179 Deduction? Learn how Section 179 is advantageous for buying and financing trucks and business vehicles

www.section179.org

Jayster10 said:

Hi all,

I just came across this article from Forbes, Updated: Oct 6, 2021, that talks about tax deductions. Unfortunately, not sure if we will be able to collect on it, according to this article. Pay attention to the last line in the last paragraph of the article. Here is the link if you want to read the article: EV Tax Credit Calculator

"When you buy an electrified vehicle—battery electric vehicle (BEV) or plug-in hybrid electric vehicle (PHEV)—most people are entitled to a credit on your federal taxes of $2,500 to $7,500. In addition, about 20 states offer credits or rebates plus intangible benefits such as free charging, free municipal poking, lower highway tolls or single-occupant access to high-occupant vehicle (HOV) highway lanes.

There are exceptions, explained in the FAQs below. You have to buy not lease a vehicle although there are ways to collect while leasing, you have to be the very first person to buy (title and register) the vehicle and under current rules General Motors and Toyota/Lexus vehicles aren’t covered because they passed the current cap of 200,000 vehicles eligible for rebates."

Having said that, I don't know if that applies to the company as a hole or if it referring to 200,000 of an individual vehicle, which the Hummer EV has not reached.

Does anyone have any clarification on this?

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MunneY said:

I’ll be surprised if they don’t get this changed this year.

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Tom E-Tron said:

Even if Congress passed the new proposals Hummer would still not qualify for federal rebates as they were all capped at $80K, and the Hummer is the reason the section 179 changed to only vehicles with longer then 6' beds or longer. Too many realtors, and others bought the old Hummers and fully deducted what was essentially a family vehicle, not a "work" vehicle.

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awp317 said:

When did the 5' bed rule start? Last I had heard all that it needed to qualify was over 6000 GVWR. That was one of the main reasons I bought my Range Rover in December, for the 100% write off. Im not an accountant by any means and will talk to them about it in the future but an online article from Jan, 2022 states 100% can be deducted with bonus depreciation. I would be a little annoyed if this changed as I 100% use this vehicle for business. I have other vehicles I drive when not driving for my company. It even has company logos on it, and planned to do the same with the hummer for the 22 tax year.

Last year we deducted 100% of the purchase of 3 GMC Sierra Diesels but they had 8 foot beds and nearly 12k pound GVWR. this would be my first attempt at a "light duty" write off.

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Limit for sport utility and certain other
vehicles. You cannot elect to deduct more
than $25,500 of the cost of any heavy sport util-
ity vehicle (SUV) and certain other vehicles
placed in service during the tax year. This rule
applies to any four-wheeled vehicle primarily
designed or used to carry passengers over pub-
lic streets, roads, or highways that isn’t subject
to any of the passenger automobile limits ex-
plained under Depreciation Limits, later, and
that is rated at more than 6,000 pounds gross
vehicle weight and not more than 14,000
pounds gross vehicle weight. However, the
$25,500 limit doesn’t apply to any vehicle:
• Designed to have a seating capacity of
more than nine persons behind the driver's
seat;
• Equipped with a cargo area of at least 6
feet in interior length that is an open area
or is designed for use as an open area but
is enclosed by a cap and isn’t readily ac-
cessible directly from the passenger com-
partment; or
• That has an integral enclosure, fully en-
closing the driver compartment and load
carrying device, doesn’t have seating rear-
ward of the driver's seat, and has no body
section protruding more than 30 inches
ahead of the leading edge of the wind-
shield.

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KirkwoodBum said:

Slightly related to the tax break discussion, has anyone had success with their local utility and getting any of the EV refund programs to be applicable? My local utility offers $500 rebate on an L2 charger purchase and an additional $500 on the electrical bill to install the charger. However, they have capped the capacity of what L2 chargers you can use stating you "supply an output current up to 32 amps maximum (7.7 kW) served by a maximum 40-amp breaker." The ClipperCreek L2 GM sent is an 11.5kW so the utility is saying they wont cover the $500 rebate for installation.

Curious if others have either been excluded from b/c of the higher capacity charger or successful in taking advantage of this addition rebates.

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Tom E-Tron said:

Same here, $500 rebate on the charging equipment, but you have to let them log into it to monitor usage. The utility wants access for grid planning data..

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KirkwoodBum said:

Slightly related to the tax break discussion, has anyone had success with their local utility and getting any of the EV refund programs to be applicable? My local utility offers $500 rebate on an L2 charger purchase and an additional $500 on the electrical bill to install the charger. However, they have capped the capacity of what L2 chargers you can use stating you "supply an output current up to 32 amps maximum (7.7 kW) served by a maximum 40-amp breaker." The ClipperCreek L2 GM sent is an 11.5kW so the utility is saying they wont cover the $500 rebate for installation.

Curious if others have either been excluded from b/c of the higher capacity charger or successful in taking advantage of this addition rebates.

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