Tag: tax credits

Number of EVs Eligible for Tax Credits Plummet as U.S. Seeks to Shrink Reliance on China’s Supply Chain

Georgia Star News Staff
EV VW

The number of electric vehicles (EV) that qualify for tax credits fell from 43 to 19 on Monday following new rules about the number of components in the vehicle that can be made by China and other foreign entities, according to Reuters.

On Dec. 1, 2023, the Treasury Department released guidance for which EVs are eligible for its $7,500 tax credit, requiring vehicles to have at least 60% of battery components and 50% of total critical minerals used not be from a foreign entity of concern like China starting in 2024. Vehicles that are impacted by the changes include the Volkswagen ID.4, Tesla Model 3 Rear Wheel Drive, BMW X5 xDrive 50e, Audi Q5 PHEV 55, Cadillac Lyriq and Ford E-Transit, losing eligibility for the credit, according to Reuters.

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Biden-Favored EV Bus Maker Proterra Goes Bust and Leaves a Trail of Broken and Irreparable Buses

Just the News

Across the country, towns and cities of various sizes envisioned an electrified public transit system that could shuttle residents with vehicles that produced no carbon-filled exhaust.

Many of those communities purchased buses from Silicon Valley-based Proterra, which was able to produce 550 buses over its 19-year existence before it went bankrupt in August.

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Georgia Lawmakers Begin Review of State’s Tax Credits

The Center Square

Georgia lawmakers could consider overhauling the state’s tax credits when they reconvene in January, but the specific action they take could depend on what they hear from experts over the next few months.

“The economic reality of tax credits is that when we help to expand an industry that isn’t profitable without our help, that’s bad for the economy,” University of Georgia professor Jeffrey Dorfman, the state’s fiscal economist, told members of the Joint Tax Credit Review Panel, which held its first public meeting this week. “Generally, this is not what you want to do. Thus, tax credits only make sense for business attraction if attracting that plant or employer or industry to the state is going to bring you some spillover benefit, some long-term benefit or some non-economic benefit.”

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Georgia Leaders Plan to Review State’s Tax Credits

The Center Square

Georgia leaders plan to review the state’s various tax credits, saying they want to ensure any credits provide a “significant return on investment” for Georgia’s taxpayers.

The review, announced Thursday, will include the oft-lauded film tax credit. House and Senate members will work with various industry stakeholders and state offices, including the Georgia Department of Economic Development, the Governor’s Office of Planning & Budget and the Georgia Department of Revenue.

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Ted Cruz Bills Aim to Advance School Choice Across the Country Through Tax Credits, 529 Expansion

Admin

Sen. Ted Cruz, R-Texas, commemorated National School Choice Week by filing two bills to advance school choice, one of which his staff said would be the most significant educational reform since the GI bill. “We need to provide students with a variety of educational options to fit their needs,” Cruz told The Daily Signal in an email statement Tuesday. “I have often said that school choice is the civil rights issue of the 21st century, and I believe no differently today than I did when I began serving in the Senate a decade ago.

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Georgia’s $6.5 Billion in Film Subsidies Add Up to $416K per Each New Industry Job

The Center Square

Georgia officials pride themselves on the state’s tax credits for the movie industry, but a leading economist says the tax credits don’t benefit the state.

“There’s nothing politicians love more than jocks and movie stars,” Kennesaw State University economist J.C. Bradbury told The Center Square. “That’s why they give out a lot of subsidies for sports stadiums, and film and movie credits are also something that are often given out.

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Georgia’s US Senators Vote for Bill Stripping One of State’s Largest Employers of EV Tax Credits

Georgia Star News Staff

Georgia’s two senators voted for the Democrats’ recently enacted Inflation Reduction Act, even though it strips South Korean automaker Kia — one of the state’s largest employers — of eligibility for the law’s electric vehicle tax credits.

Kia, which employs thousands in Georgia, is planning to build another automobile factory in the state and hire 8,500 people, according to The Atlanta Journal-Constitution. Due to domestic assembly requirements in the new law, however, the automaker’s EV and plug-in fleet will lose their current eligibility for $7,500 tax credits on the purchase of new electric vehicles.

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Robin Hood in Reverse: Democrats Plan $12,500 Tax Credits for Pricey Electric Car Purchases

Georgia Star News Staff

House Republicans are arguing against a Democratic proposal to increase the $7,500 taxpayer-funded credit for electric car purchases to as much as $12,500, arguing that it would disproportionately help wealthy Americans who can afford to buy pricey electric vehicles.

Democrats on the House Ways and Means Committee have proposed increasing the credit as part of their party’s filibuster-proof $3.5 trillion budget reconciliation bill, which includes new social programs and billions for electric vehicle infrastructure.

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Amazon Calls for Higher Taxes on All Corporations Except Itself

Georgia Star News Staff
Amazon logo on Samsung smartphone screen

While the tech giant Amazon has publicly endorsed proposals to raise the corporate tax rate in the United States, the company has been secretly lobbying to keep its own tax rates low, Politico reports.

Last year, during the 2020 presidential election, Amazon CEO Jeff Bezos openly supported then-candidate Joe Biden’s proposals to raise taxes on American corporations. Those proposals have re-emerged in recent weeks as a possible means of funding a possible infrastructure bill, and Biden has been advocating for other countries around the world to adopt higher corporate tax rates as well.

But recently, Amazon has been stepping up its lobbying efforts to try to convince Congress and the White House to allow the company to keep using certain tax breaks in order to keep its own rates low. The retail giant hired a tax lobbyist named Joshua Odintz, who formerly worked as a Democratic aide on Capitol Hill and then as an official in the Obama Administration. In addition to Amazon’s own efforts, similar lobbying has been undertaken by a group known as the “R&D Coalition,” which consists of several companies and organizations including Amazon, Intel, and the National Association of Manufacturers.

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