A new J.D. Power study reveals the significant impact of federal tax credits on electric vehicle (EV) sales. The study shows a considerable portion of EV buyers, particularly those of Volkswagen, Chevrolet, and Tesla, were primarily driven by these incentives. The potential elimination of these credits under the incoming administration could severely impact EV sales, contradicting Elon Musk’s recent assessment.
Reunion, a leading clean energy finance company, has facilitated the purchase and sale of over $1.6 billion in clean energy tax credits through Q3 2024. The company has seen significant growth in the market, driven by increased demand for high-quality opportunities from corporations across various industries.
Treasury Secretary Janet Yellen has cautioned against repealing the clean energy tax credits established by the Inflation Reduction Act, arguing it would be a “historic mistake” that increases costs for families, jeopardizes new manufacturing investments, and potentially gives China an advantage in the green energy sector. Yellen emphasizes the benefits of these credits, highlighting that families have already claimed $8.4 billion, which will help reduce their energy bills. Meanwhile, Vice President Kamala Harris introduced a 28% tax on long-term capital gains for high earners.
Renew Energy Partners (RENEW) has sold earned energy tax credits to a private buyer represented by Foss & Company, utilizing the new transfer provisions of the Inflation Reduction Act. This sale, which builds on a previous $10 million investment in a decarbonization and resilience project at a 1,600-unit housing co-op, demonstrates the ongoing value of clean energy technology projects for both customers and investors.
An Alabama bill designed to boost workforce participation by making childcare more accessible and affordable is moving forward in the state legislature. The bill (HB358) offers tax credits to employers providing on-site childcare and to childcare providers expanding their services. Nonprofit childcare providers would also be eligible for grants. The bill aims to create childcare options for thousands of Alabama families, with an estimated 7,000 families benefiting in the first year and up to 24,000 over three years. It is part of the ‘Working for Alabama’ package, which seeks to address barriers to workforce participation, as Alabama’s labor force participation rate is among the lowest in the US. The bill passed the Alabama House unanimously and will now be considered by the state Senate.
Tesla Inc. has introduced a new, Performance edition of the refreshed Model 3 in the U.S., priced at $52,990. This is higher than its Model Y counterpart and other Model 3 variants, but it qualifies for a $7,500 federal EV tax credit, effectively lowering the price for eligible buyers to $45,490. The Performance version offers a range of 296 miles and a top speed of 163 mph, and customers can expect delivery within the next two months. Despite its higher price, the availability of the tax credit makes the Model 3 Performance more affordable than the Long Range version for eligible customers. However, leasing a Model 3 rear-wheel drive or Long Range may still be cheaper through the available EV lease incentive. Tesla CEO Elon Musk has expressed confusion over the criteria for EV incentives under the Inflation Reduction Act (IRA).
New Jersey and Connecticut are offering tax credits to residents who successfully appeal New York’s requirement that out-of-state workers pay personal income tax to New York, even if they work remotely. This is due to the loss of hundreds of millions of dollars in tax revenue each year. The neighboring states have implemented “retaliatory” tax rules affecting New Yorkers working remotely for their companies, but these workforces are far smaller. The issue has been ongoing for decades, and a legal challenge may be necessary to overturn the rule entirely.
