Latest news with #rebate
Forbes
a day ago
- Automotive
- Forbes
Should You Buy A New EV Before The $7,500 Tax Credit Expires?
NEW YORK: A new Lexus electric car is displayed at the New York International Auto Show (Photo by ... More) In 2009, the American Recovery and Reinvestment Act offered the first federal rebates and tax credits for electric vehicles (EVs) in the United States. The credits were reinstated in 2022, under the Inflation Reduction Act, and written to last until 2032. The current administration had other plans, and lawmakers recently passed a new tax and budget bill (nicknamed the "One Big Beautiful Bill") to reset the EV rebates and tax credit expiration date to September 30, 2025—that's right around the corner. While there are no plans to offer a federal tax credit for new or used EV purchases after that date, some state and local governments may offer similar programs. Still, none are as comprehensive as the rebates and tax credits that are set to expire in just over 60 days. This creates quite a dilemma for consumers considering a new or used EV. Should they accelerate their purchase to take advantage of the rebates and credits, or wait and see what the future holds? Sound advice suggests that if you currently have plans to buy or lease an EV before year's end, it makes sense to accelerate the transaction and complete it before September 30, 2025. If you are only casually considering an EV—primarily enticed by the $7,500 (new) or $4,000 (used) incentives—it's better to wait until next year. Today, the average new EV costs about $9,000 more than a comparable gasoline vehicle, and used EVs are still about $2,000 more than an equivalent used gasoline vehicle. Until now, automakers have relied heavily on rebates and tax credits to boost sales. They have successfully advertised the discounts in their marketing efforts. Once the credit is gone in October, demand for EVs is expected to slow significantly. Manufacturers are not obligated to lower prices—most won't be able to discount existing inventory, and consumers will be forced to pay the higher prices (some shoppers will pay more willingly, noting that EVs cost significantly less to own over the long run, thanks to lower charging costs and reduced maintenance). Over time, most manufacturers will eventually lower prices, offer increased dealer incentives (savings passed on to shoppers), or complement sales with attractive financing and low interest rates—all of this is dependent on market conditions, consumer demand, wholesale battery prices (during manufacturing), and the competitive environment. And they will likely shift marketing campaigns to stress the advantages of EV ownership (zero fuel costs, lower maintenance, and the convenience of home chargers). In summary, if you are currently in the market for a new or used EV, it's wise to complete the purchase before September 30, 2025. Keep in mind that the rules have changed—not all EVs and buyers qualify for today's credits. Under the new legislation, there are very specific rules regarding North American assembly, battery sourcing, vehicle pricing caps ($80,000 for SUVs, pickups, and vans; $55,000 for other vehicles), and buyer income levels (consult with your tax professional to determine eligibility).
Forbes
a day ago
- Business
- Forbes
Will There Be $600 Tariff Rebate Checks? New Bill Comes After Trump Expressed Interest
Legislation introduced Monday by Sen. Josh Hawley, R-Mo., would provide tariff rebate checks of at least $600 to American families, after President Donald Trump signaled his administration would 'consider' sending checks based on the billions his tariffs have collected, though the payout program would likely lead to increased inflation. President Donald Trump signaled his administration would 'consider' sending Americans rebate checks ... More from the billions in revenue his tariffs have raised. Copyright 2025 The Associated Press. All rights reserved Hawley's bill proposes establishing a refundable tax credit for Americans using tariff revenue, which would send at least $600 to each eligible adult and dependent child this year, pending approval from Congress and Trump. Trump last week said his administration was 'thinking about a little rebate' from tariff revenue that would impact 'people of a certain income level,' though he did not provide additional details. A larger rebate check would be issued if tariff revenue exceeds projections, according to the bill, which reduces the rebate by 5%—lowering the $600 sum to about $570—for joint filers with an adjusted gross income above $150,000, a head of household with an income of over $112,500 or an individual whose income exceeds $75,000. Hawley said in a statement his bill would 'allow hard-working Americans to benefit from the wealth' collected by Trump's tariffs. It's likely the tariff rebate checks, amounting to payouts to millions of U.S. citizens, would lead to higher inflation. COVID-19 stimulus checks approved by Trump and then-President Joe Biden in 2020 and 2021, respectively, injected about $814 billion into the economy, contributing to inflation reaching a 41-year high of more than 9% by June 2022. The stimulus programs accounted for about a third of inflation that year, according to the Federal Reserve Bank of St. Louis. How Much Will Trump's Tariffs Collect In Revenue? Trump's wide-reaching levies on U.S. trade partners are projected to raise about $2.5 trillion over the next decade, according to the Tax Foundation, which noted the tariffs will raise the price of common goods and taxes for the average household by nearly $1,300 in 2025 and about $1,700 in 2026. Treasury Secretary Scott Bessent told Fox Business last week the U.S. has collected $100 billion in tariff revenue since Trump implemented his levies and projected revenue would reach $300 billion per year. Revenue from tariffs totaled roughly $27 billion in June, an increase of $4 billion from May, according to the Treasury Department. Trump announced last month an investment account with $1,000 in funds for children born in the U.S. between Jan. 1, 2025 and Jan. 1, 2029, with all newborn children automatically enrolled in the program. Parents or account custodians could place up to an additional $5,000 in post-tax contributions annually into the account, which would invest in index funds. Some tax analysts argued the accounts are too restricted because they are tied to stock funds and not less risky options like bonds or cash. The accounts were approved under Trump's 'Big Beautiful Bill' earlier this month. Tangent Trump announced last month an investment account with $1,000 in funds for children born in the U.S. between Jan. 1, 2025 and Jan. 1, 2029, with all newborn children automatically enrolled in the program. Parents or account custodians could place up to an additional $5,000 in post-tax contributions annually into the account, which would invest in index funds. Some tax analysts argued the accounts are too restricted because they are tied to stock funds and not less risky options like bonds or cash. The accounts were approved under Trump's 'Big Beautiful Bill' earlier this month. Further Reading Forbes Here's Everything We Know About DOGE Dividend Checks—And How They Could Contribute To Inflation By Derek Saul
CBS News
4 days ago
- Business
- CBS News
Trump says he's considering rebate checks for Americans based on tariff revenue
President Trump on Friday said he's considering issuing rebate checks for Americans based on the billions in new tariff revenue collected by his administration. "We're thinking about a little rebate. But the big thing we want to do is pay down debt. But we're thinking about a rebate," Mr. Trump said in comments to reporters before he left for a four-day visit to Scotland. Federal debt, which currently stands at more than $36 billion, is projected to rise due to the new tax cuts and spending bill signed into law by Mr. Trump on July 4, according to forecasts from economists and public policy think tanks. The nation's deficit could rise by $3.4 trillion over the next 10 years because of the impact of the One Big Beautiful Bill Act, the Bipartisan Policy Center said, citing estimates from the nonpartisan Congressional Budget Office and the Joint Committee on Taxation. Mr. Trump added that the rebate could be "for people of a certain income level," although he didn't specify the threshold that he's considering. The federal government has collected about $100 billion in tariff revenue since the Trump administration instituted its higher import duties earlier this year, which could increase to $300 billion per year, Treasury Secretary Scott Bessent told Fox Business' "Mornings with Maria" on Tuesday. Tariffs vary from country to country, but they're paid by U.S. importers, such as Walmart, or manufacturers that import materials and components from other countries, like Ford Motor. So far, some companies have been swallowing the higher costs rather than passing them on to consumers, although the latest inflation report signaled that higher tariff rates may be edging into consumer prices. Rebate checks have been floated by Mr. Trump previously, with the president saying in February he was considering using 20% of the savings from Elon Musk's cost-cutting task force, the Department of Government Efficiency, or DOGE, to provide direct payments to taxpayers. During the pandemic, taxpayers received three rebate checks — two under the first Trump administration, and the third under the Biden administration — aimed at offsetting the economic impact of the crisis. Typically, such rebates are issued through the tax code, which would require Congress to pass new tax legislation authorizing the Treasury Department to issue checks. Lawmakers earlier this month passed a massive tax and spending bill that was signed into law by Mr. Trump on July 4, which authorizes some new tax breaks, but doesn't include a rebate based on tariffs. Some of the bill's new tax cuts are limited to low- and middle-income taxpayers. For instance, its new $6,000 deduction for senior citizens phases out for single taxpayers with incomes over $75,000 and married filers with earnings over $150,000.
Bloomberg
5 days ago
- Business
- Bloomberg
Trump Floats Giving Americans Rebate Checks From Tariff Revenues
President Donald Trump said he is considering sending rebate checks to Americans using revenue from tariff increases his administration is imposing on US trading partners. 'We're thinking about that actually — we have so much money coming in, we're thinking about a little rebate,' Trump told reporters on Friday at the White House as he left for a trip to Scotland. 'A little rebate for people of a certain income level might be very nice.'
CBS News
18-07-2025
- Business
- CBS News
Application window for 2025 Minnesota e-bike rebates opens July 30
The window for Minnesotans to apply for a state-funded e-bike rebate will open later this month. The Minnesota Department of Revenue announced Friday that applications will be open online from 11 a.m. on Wednesday, July 30, to 2 p.m. on Thursday, Aug. 7. The rebate will cover 75% of qualifying expenses, which include the bike itself and certain accessories, up to $750. Those selected via random lottery will receive a rebate certificate to present at the time of purchase. The revenue department said this year's lottery will be held within two weeks of the application period closing. Last year's lottery was so popular that the number of applicants took down the website upon its initial launch. When the site reopened, the portal closed within 20 minutes because of the influx of applicants. Out of 61,000 hopefuls, 14,000 successfully applied. Applicants must meet a certain set of criteria to be eligible for the rebate, including income limit. The income limit is based on your 2024 adjusted gross income. For married couples filing jointly, that figure must be under $78,000. Heads of household are capped at $62,000 and all other individuals cannot make more than $41,000. Individuals with disabilities also qualify and are not subject to income limits. Applicants must be older than 15 and have lived in Minnesota full-time in 2023 and 2024.
