We wrote that Vietnamese electric car company Vinfast is bringing its electric vehicle companies to the United States. Since then, Congress has announced that it is making changes to the $7,500 federal electric vehicle tax credit, which means it’s getting much harder to get that tax deduction. The two main changes are that the tax credit will become means-tested (i.e. if your household earns more than a certain amount, you are not eligible) and that the sticker price is limited (cars over $40,000 and SUVs and trucks with a slightly higher price). limit). It’s quite dramatic – up to 70% of electric vehicles today would not qualify for a credit, Reuters reports.
Various automakers have scrambled to figure out how to respond, but VinFast takes more extreme measures than most, promising that if you have a pre-order with the automaker and are no longer eligible for the tax refund, they’ll give you a $7,500 off the car instead.
“VinFast is a brand that not only backs our vehicles with our 10-year/125,000-mile warranty, but more importantly, we back our customers!” the company writes in an email to its pre-order holders. “For customers who claim the $7,500 tax credit under current IRC 30D requirements and are denied by the IRS for reasons not attributable to the customer, VinFast will provide the customer with a rebate of $7,500 $ off the purchase price (or similar discount) on their VinFast vehicle purchase. The binding agreement contains additional details on reimbursement eligibility.
This offer comes with a few conditions; customers must convert their non-binding $200 pre-order into a binding written contract. The $200 refundable booking fee will become non-refundable, and the company-generated contract means you can try your luck with the IRS, with the current $7,500 tax credit before Congress changes the program. . If unsuccessful, the $7,500 discount goes into effect, the company said.
Personally, I think it’s pretty smart to cut the tax refund down to $40,000 – yes, most cars won’t be covered, but it does mean that lower-end EVs become all the more accessible to customers and encourage manufacturers to create more accessible electric vehicles. At the end of the day; it’s funny that we have electric trucks that beat sports cars on the drag strip and family sedans that are the fastest things on the road, but those are marketing headlines. To put a real dent in climate change, we need to get as many people as possible to switch from petrol and diesel to electric as soon as possible – and we won’t get there by whipping Tesla Model S Plaid to the 1 % of population who can afford it.