Latest news with #taxincentives
Yahoo
a day ago
- Business
- Yahoo
As Analysts Sweeten on Hydrogen, Is Plug Power Stock a Buy?
Hydrogen stocks have come roaring back into the spotlight, driven by a renewed wave of optimism following the recent passage of U.S. President Donald Trump's 'One Big Beautiful Bill.' The sweeping legislation has injected fresh enthusiasm into the hydrogen industry by extending crucial tax incentives, removing controversial draft restrictions, and providing clarity for long-term investments in clean energy projects. That prompted a fresh round of bullish analyst sentiment that some investors believe could mark a turning point. At the center of this renewed enthusiasm is Plug Power (PLUG), a company that has long been viewed as a potential leader in the hydrogen economy. Still, significant questions linger about Plug's fundamentals. The company continues to grapple with deeply negative gross margins, substantial cash burn, and uncertainty around its long-term liquidity position. With PLUG shares rallying sharply in recent weeks, the question has come back into focus: Is Plug Power finally ready to deliver on its promise — or is this just another false dawn? More News from Barchart It's Never 'Happened in the History of Tech to Any Company Before': OpenAI's Sam Altman Says ChatGPT is Growing at an Unprecedented Rate This Penny Stock Wants to Become the MicroStrategy of Dogecoin Option Volatility And Earnings Report For July 21 - 25 Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! In this article, we'll dig into why analysts have become more bullish on the hydrogen industry, examine Plug's financial position in greater depth, and assess whether the current optimism warrants buying PLUG stock today. About Plug Power Stock With a market cap of $2.02 billion, Plug Power (PLUG) is a notable player in the green hydrogen industry, specializing in hydrogen fuel cell technologies. The company is building a comprehensive green hydrogen ecosystem, spanning production, storage, delivery, and energy generation, to support its customers' business objectives and contribute to economy-wide decarbonization. Its offerings include the GenDrive fuel cell system for material handling vehicles such as forklifts, GenSure stationary fuel cells for grid support, and ProGen fuel cell engines designed for a range of applications. It also offers GenFuel, a comprehensive solution for hydrogen production, storage, and dispensing. Shares of the hydrogen fuel cell product solutions provider have surged 72.5% over the past month, fueled by favorable changes to Trump's sweeping tax and spending bill for the hydrogen industry, along with company-specific news like the recent extension of a strategic hydrogen supply deal with a major U.S.-based industrial gas firm. However, PLUG stock is still down 10% year-to-date. Analysts Sweeten on Hydrogen as Trump's 'One Big Beautiful Bill' Brings Long-Awaited Policy Clarity On July 7, Plug Power CEO Andy Marsh told Wall Street analysts during a conference call that the hydrogen fuel cell company stands to benefit significantly from U.S. President Donald Trump's One Big Beautiful Bill (OBBB) Act. The bill extends two key tax credits that Plug Power and its customers rely on, which were set to expire under the earlier version of the legislation. Marsh stated that the bill's passage, signed into law on July 4, represents 'one of the most meaningful policy wins for Plug and really for the entire hydrogen fuel cell sector in the last several years.' One of the tax incentives provides a 30% credit on all fuel cell purchases. Notably, the revised law eliminates the 'zero-emissions' requirement, foreign content restrictions, and prevailing wage or apprenticeship conditions, significantly broadening access to the credit. 'This clarity allows us to make long-term decisions with confidence. It allows our partners and customers to do the same,' Marsh said. Plug also applauded the extension of the hydrogen production tax credit. This tax credit provides producers up to $3 per kilogram to help make this fuel source competitive with traditional fuels. With that, Plug gained greater flexibility to align its plant construction timeline with actual market demand. 'We can build smart, we can build strategically,' Marsh said. With the passage of the OBBB Act, the 30% fuel cell tax credit has been extended through 2032, and the green hydrogen tax credit will now apply to projects initiated before 2028, rather than 2026, giving Plug more time to capitalize on these incentives as it expands its network of green hydrogen plants nationwide. 'We are in a much better place today than we were a year ago,' Marsh told analysts. Meanwhile, JPMorgan noted that the policy clarity provided by the OBBBA should eliminate a longstanding 'overhang for the broader hydrogen complex,' which had been hindered for years by shifting regulatory guidelines. The firm also pointed out that Plug anticipates receiving credits for its current production in Georgia and potentially in Louisiana, while also benefiting from 'more flexibility around when it deploys capital' instead of being pressured by earlier eligibility deadlines. In addition, the firm told investors in a research note that the latest policy changes could allow certain green hydrogen projects in the U.S. to reach a final investment decision that 'would have otherwise been canceled without the credit given significantly higher production costs than blue/grey hydrogen.' Another key point is that JPMorgan noted the outlook for Plug's previously delayed Department of Energy loan has improved, after the company had blamed the delay on tax credit uncertainty during JPMorgan's Energy Conference in late June. To recap, in early January, Plug secured a nearly $1.7 billion loan guarantee from the DOE to support six zero- and low-carbon hydrogen production projects, but the Trump administration has since placed the loan under review. In my previous articles on PLUG, I highlighted the importance of the loan, as it could allow the company to move forward with its plan to build a nationwide network of green hydrogen plants, positioning it to fully capitalize on the extended hydrogen production tax credit. Overall, JPMorgan sees the bill as a positive development for Plug but notes that the extent of unlocked demand and the company's ability to improve margins and reduce cash burn remain uncertain. The firm maintained its 'Neutral' rating on PLUG stock after the management's conference call with analysts. Other firms seem more optimistic about PLUG's outlook, with Roth Capital and H.C. Wainwright both reaffirming their 'Buy' ratings. Ball Now on Plug's Side As JPMorgan analysts pointed out, while the OBBBA offers some relief to Plug and the overall hydrogen industry, the company still faces challenges in its core operations, including deeply negative margins and massive cash burn. With that, let's take a closer look at the company's latest quarterly results and dive deeper into key points. In the first quarter of 2025, Plug's sales grew 11.1% year-over-year to $133.7 million, fueled by higher electrolyzer shipments, steady demand in material handling, and continued deployments across its cryogenic platform. However, the company continues to post deeply negative gross margins, largely due to the structure of its fuel contracts. In Q1, PLUG posted a gross margin loss of -55%. Still, this marked an improvement from -132% in the same quarter a year ago. We also recently received some positive news on the margins front. On July 9, Plug announced a new multi-year enhanced supply agreement with a major U.S.-based industrial gas company and longtime hydrogen partner. The agreement extends the existing strategic partnership between the companies through 2030, ensuring a stable hydrogen supply for Plug's expanding applications business while substantially lowering the cost structure and improving cash flows. During the Q1 earnings call, management said they aim to achieve break-even gross margins by year-end, so it will be interesting to see in the Q2 update whether that timeline has been moved up. Another key point that caught my attention is expenses. While everything looked great with research and development costs in Q1, thanks to the company's 2025 Restructuring Plan, the same cannot be said for SG&A expenses. They rose slightly year-over-year to $80.8 million, an uncomfortably high figure for a company grappling with negative gross margins and significant losses. As a result, Plug's net loss stood at $196.9 million, or $0.21 per share. Finally, Plug continues to burn a massive amount of cash, and its liquidity outlook beyond 2025 remains uncertain. The company ended Q1 with just $295.8 million in unrestricted cash but later secured a costly debt facility of up to $525 million from its existing lender, Yorkville Advisors. What I really don't like is the first-quarter cash burn of $152.1 million, especially given that management had already launched a $200 million cost-saving program. Looking ahead, management forecasts Q2 revenue to range between $140 million and $180 million. At the midpoint, Plug's first-half sales would come in just under $300 million, well below the over-$400 million estimate projected at the end of 2024. Analysts currently forecast Plug's FY25 revenue at $733.25 million, reflecting a modest 16.61% year-over-year increase, while its net loss is expected to narrow by 78.35% year-over-year to $0.58 per share. What Do Analysts Expect for PLUG Stock? Despite the recent wave of optimism surrounding the hydrogen industry, analysts haven't changed their view on Plug stock, which continues to carry a consensus 'Hold' rating — unchanged from one, two, and three months ago. Of the 23 analysts covering the stock, five rate it a 'Strong Buy,' 13 recommend holding, and the other five have issued a 'Strong Sell' rating. Still, PLUG's average price target of $4.08 implies massive upside potential of 116% from current levels. The Bottom Line on PLUG Stock Putting it all together, I currently view PLUG stock as a 'Hold.' The stock moved exactly as I expected in my previous article, reaching the $1.80–$2.00 range, where I believe the main price action will occur. The stock now faces a strong multi-year resistance level at $2.00, which I don't expect it to break through unless the company delivers some fundamental improvements. For this reason, I'll be closely watching the company's Q2 report, scheduled for early August, with a particular focus on improvements in margins and cash burn. On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNA
2 days ago
- Business
- CNA
A look at renewed efforts to revive interest in China's Hengqin island
For years, China has poured billions into developing quieter cities to even out economic growth. Despite tax incentives and funding, not every venture has succeeded. Deborah Wong travelled to the southern Chinese island of Hengqin to find out how it can revive interest.
Daily Mail
5 days ago
- Entertainment
- Daily Mail
Texas torn apart over A-listers' attempt to make it 'the new Hollywood' as bizarre rules directors must follow are revealed
In many ways deep red Texas could not be further from the liberal movie sets of Hollywood. But now a gaggle of A-listers and lawmakers believe the it is the perfect place to set up a film industry which could not only rival Tinseltown's, but topple it altogether. Matthew McConaughey, Woody Harrelson and Renée Zellweger are among the actors leading the charge. They have recently helped secure a bill that will inject $300 million into the Texas film industry over the next two years and provide tax incentives for the next decade. However the new law, which comes into effect on September 1, does contain some distinctly Texan stipulations when it comes to who can qualify for the cash. Officials plan to be far more selective about who gets taxpayer money than their Californian counterparts, with Governor Gregg Abbott given veto powers under the new law. But despite the strict parameters, the decision has been heavily criticized by conservatives in Texas, who described the bill as an 'abomination' and fear it will turn the Lone Star State into a new La La Land. Subsidy Rules Supporters of the new Texas law say they want to be as influential as Hollywood, but without the same liberal cultural values. As a result, they have created a series of hoops filmmakers must jump through if they want to secure any state cash. 'We are not trying to make Texas the next Hollywood - we don't like Hollywood. We want to export Texas values,' Lieutenant Governor Dan Patrick, one of the biggest proponents of the scheme, recently said in a campaign update. Patrick is a staunch conservative who despite his opposition to legal marijuana, gambling and abortion, wants to make Texas 'the film capital of the world'. He and other legislators have devised a system which will reward films with, 'export Texas values', according to Patrick. For projects that spend at least $1.5 million in Texas, the new law offers tiered grants worth 25 percent of that in-state spending. Films that are faith-based, shoot in historic sites or employ a percentage of crew who are Texas-based military veterans can get a grant as high as 31 percent. Additionally, the governor's office has broad powers in determining which projects do and do not get funding. If films are deemed to have content that is 'inappropriate,' has obscene content or portrays Texas negatively - they won't get a dime. Celebrity backing None of this would have been possible without the support of several towering figures in the entertainment industry. In January, Matthew McConaughey, Woody Harrelson, Renée Zellweger and several others appeared in a video that campaigned for Texas officials to bring increased film incentives so people can make movies in the state without breaking the bank. The four-minute video begins with Harrelson and McConaughey barreling down a highway in a sedan as they're deep in conversation about this very issue. 'You ever wonder if this industry of ours is just chasing its own tail?' Harrelson asks. 'No, I don't wonder. Restrictions, regulations, nickel and diming productions, political lectures,' McConaughey replies. The video had a surprising level of credibility, considering the fact that McConaughey, Harrelson, Zellweger and Dennis Quaid (who also appeared) were all born in Texas. McConaughey, whose social media feed focuses almost exclusively on Texas sports, attended a March hearing with state legislators and had the final word. 'If we pass this bill, we are immediately at the bargaining table for shooting more films and TV and commercials in our state,' he said while wearing a cowboy hat. 'That is money that's going to local Texas restaurants, hotels, coffee shops, dry cleaners, street rentals, home rentals ― even Woody's barber,' in reference to Harrelson, who was also in attendance. Two months after McConaughey's overture, the Senate voted 23-8 in favor of the bill and it became law by June. The Opposition But these restrictions weren't enough for the many conservatives who opposed the law when it was being debated over the last few months. Some were concerned that the bill would allow Texas to go down a path of unrighteousness, while others thought the subsidies were taxpayer theft. 'The Bible warns us of the consequences of the government wrongfully taking money from some and handing it out to others,' Texans for Fiscal Responsibility said in one of its papers against the bill. Republican State Rep. Brian Harrison has emerged as the main enemy of the bill, calling it an abomination. 'And shame on everybody who voted for it,' he has said. 'This is big government liberal redistributive socialism,' Harrison told the LA Times. 'The governor and lieutenant governor of the supposedly Republican-controlled state of Texas chose to keep property taxes billions of dollars higher so that you can subsidize a rich liberal Hollywood movie industry - how embarrassing.' He plans to introduce legislation at a special hearing later in July that would repeal the law. Exodus from California The bill deepens the growing rivalry between California and Texas, which has already poached several major companies once based in the Golden State, including Tesla and Hewlett-Packard. These businesses were largely lured by lower taxes and a business-friendly environment, both things the bill signed by Abbott seeks to address with the film industry specifically. It couldn't come at a worse time for California, a state that is already bleeding talent and expertise. When Hollywood writers and actors went on strike in 2023, California lost roughly 40,000 film and TV jobs that year alone, according to the Bureau of Labor Statistics. California also has to worry about the tax subsidies being offered in the other states, not just Texas, and even other nations. That's why in late June, California legislators doubled their own tax incentive ceiling to a staggering $750 million a year. While Texas isn't spending nearly as much tax money as California on movies and TV, experts believe that this could be the start of a real competition. 'Texas now has a program that is going to be competitive,' Fred Poston, the executive director of the Texas Media Production Alliance, told the Los Angeles Times. 'When you really take a close look at it, you realize this is a big deal. We have this new level of funding to start building more industry around it.' A Return to the Glory Days Proponents of the law feel that without the incentives, Texas is leaving tons of economic growth on the table. Texas, while not Hollywood, has been the filming location for many highly-celebrated pieces of media, including but not limited to the 1956 western 'Giant', the 1974 slasher film 'The Texas Chainsaw Massacre' and the high school football drama TV series 'Friday Night Lights.' By the early 2000s, nearby states became more attractive to film because of better incentives being offered to producers. 'Texas had been highly competitive, we had all of these ingredients,' Rebecca Campbell, CEO of the Austin Film Society, told the LA Times. 'Then all of a sudden, Texas stories were getting shot in New Mexico and Louisiana.' Texas introduced its first program for film incentives in 2007, earmarking $20 million for it. Because of how underfunded it became over the years, the producers of 'Fear the Walking Dead' decided to move production in 2021 from Austin to Georgia. Richard Linklater, a Houston-born director, filmed his 2024 romantic crime thriller 'Hit Man' starring Glen Powell in his hometown. But because there wasn't enough incentive funds, he had to move the operation to New Orleans. 'We're completely surrounded by states that have very active film incentive programs,' he said on the podcast 'Friends on Film.'
Daily Mail
5 days ago
- Entertainment
- Daily Mail
Why Texas could be the new Hollywood
In many ways, deep red Texas could not be further from the liberal movie sets of Hollywood. But now a gaggle of A-listers and lawmakers believe it is the perfect place to set up a film industry which could not only rival Tinseltown's, but topple it altogether. Matthew McConaughey, Woody Harrelson and Renée Zellweger are among the actors leading the charge. They have recently helped secure a bill that will inject $300 million into the Texas film industry over the next two years and provide tax incentives for the next decade. However, the new law, which comes into effect on September 1, does contain some distinctly Texan stipulations when it comes to who can qualify for the cash. Officials plan to be far more selective about who gets taxpayer money than their Californian counterparts, with Governor Gregg Abbott given veto powers under the new law. But despite the strict parameters, the decision has been heavily criticized by conservatives in Texas, who described the bill as an 'abomination' and fear it will turn the Lone Star State into a new La La Land. Supporters of the new Texas law say they want to be as influential as Hollywood, but without the same liberal cultural values. As a result, they have created a series of hoops filmmakers must jump through if they want to secure any state cash. 'We are not trying to make Texas the next Hollywood — we don't like Hollywood. We want to export Texas values,' Lieutenant Governor Dan Patrick, one of the biggest proponents of the scheme, recently said in a campaign update. Patrick is a staunch conservative who, despite his opposition to legal marijuana, gambling and abortion, wants to make Texas 'the film capital of the world'. He and other legislators have devised a system which will reward films that 'export Texas values,' according to Patrick. For projects that spend at least $1.5 million in Texas, the new law offers tiered grants worth 25 percent of that in-state spending. Films that are faith-based, shoot in historic sites or employ a percentage of crew who are Texas-based military veterans can get a grant as high as 31 percent. Additionally, the governor's office has broad powers in determining which projects do and do not get funding. If films are deemed to have content that is 'inappropriate,' has obscene content or portrays Texas negatively — they won't get a dime. None of this would have been possible without the support of several towering figures in the entertainment industry. In January, Matthew McConaughey, Woody Harrelson, Renée Zellweger and several others appeared in a video that campaigned for Texas officials to bring increased film incentives so people can make movies in the state without breaking the bank. The four-minute video begins with Harrelson and McConaughey barreling down a highway in a sedan as they're deep in conversation about this very issue. 'You ever wonder if this industry of ours is just chasing its own tail?' Harrelson asks. 'No, I don't wonder. Restrictions, regulations, nickel and diming productions, political lectures,' McConaughey replies. The video had a surprising level of credibility, considering the fact that McConaughey, Harrelson, Zellweger and Dennis Quaid (who also appeared) were all born in Texas. McConaughey, whose social media feed focuses almost exclusively on Texas sports, attended a March hearing with state legislators and had the final word. 'If we pass this bill, we are immediately at the bargaining table for shooting more films and TV and commercials in our state,' he said while wearing a cowboy hat. 'That is money that's going to local Texas restaurants, hotels, coffee shops, dry cleaners, street rentals, home rentals — even Woody's barber,' in reference to Harrelson, who was also in attendance. Two months after McConaughey's overture, the Senate voted 23–8 in favor of the bill, and it became law by June. But these restrictions weren't enough for the many conservatives who opposed the law when it was being debated over the last few months. Some were concerned that the bill would allow Texas to go down a path of unrighteousness, while others thought the subsidies were taxpayer theft. 'The Bible warns us of the consequences of the government wrongfully taking money from some and handing it out to others,' Texans for Fiscal Responsibility said in one of its papers against the bill. Republican State Rep. Brian Harrison has emerged as the main enemy of the bill, calling it an abomination. 'And shame on everybody who voted for it,' he has said. 'This is big government liberal redistributive socialism,' Harrison told the LA Times. 'The governor and lieutenant governor of the supposedly Republican-controlled state of Texas chose to keep property taxes billions of dollars higher so that you can subsidize a rich liberal Hollywood movie industry — how embarrassing.' He plans to introduce legislation at a special hearing later in July that would repeal the law. The bill deepens the growing rivalry between California and Texas, which has already poached several major companies once based in the Golden State, including Tesla and Hewlett-Packard. These businesses were largely lured by lower taxes and a business-friendly environment, both things the bill signed by Abbott seeks to address with the film industry specifically. It couldn't come at a worse time for California, a state that is already bleeding talent and expertise. When Hollywood writers and actors went on strike in 2023, California lost roughly 40,000 film and TV jobs that year alone, according to the Bureau of Labor Statistics. California also has to worry about the tax subsidies being offered in other states, not just Texas, and even other nations. That's why in late June, California legislators doubled their own tax incentive ceiling to a staggering $750 million a year. While Texas isn't spending nearly as much tax money as California on movies and TV, experts believe that this could be the start of a real competition. 'Texas now has a program that is going to be competitive,' Fred Poston, the executive director of the Texas Media Production Alliance, told the Los Angeles Times. 'When you really take a close look at it, you realize this is a big deal. We have this new level of funding to start building more industry around it.' Proponents of the law feel that without the incentives, Texas is leaving tons of economic growth on the table. Texas, while not Hollywood, has been the filming location for many highly-celebrated pieces of media, including but not limited to the 1956 western 'Giant', the 1974 slasher film 'The Texas Chainsaw Massacre' and the high school football drama TV series 'Friday Night Lights.' By the early 2000s, nearby states became more attractive to film because of better incentives being offered to producers. 'Texas had been highly competitive, we had all of these ingredients,' Rebecca Campbell, CEO of the Austin Film Society, told the LA Times. 'Then all of a sudden, Texas stories were getting shot in New Mexico and Louisiana.' Texas introduced its first program for film incentives in 2007, earmarking $20 million for it. Because of how underfunded it became over the years, the producers of 'Fear the Walking Dead' decided to move production in 2021 from Austin to Georgia. Richard Linklater, a Houston-born director, filmed his 2024 romantic crime thriller 'Hit Man' starring Glen Powell in his hometown. But because there wasn't enough incentive funds, he had to move the operation to New Orleans. 'We're completely surrounded by states that have very active film incentive programs,' he said on the podcast 'Friends on Film.' 'They really support this industry, and you have to do that to compete,' he added.
CBC
7 days ago
- Automotive
- CBC
The U.S. has a new incentive for the purchase of U.S.-assembled vehicles; should Canadians be concerned?
Social Sharing New tax incentives that encourage Americans to buy American-assembled automobiles would probably be a significant cause for concern any other year and should probably be a cause for concern now, according to one expert. "But the reality is there are other, bigger, more problematic fish to fry than that right now," Greg Mordue said. The professor in the faculty of engineering at McMaster University said the federal tax deduction for interest paid on some vehicle loans is "probably not the most devastating thing that has happened to the Canadian automotive industry." But "that's all relative in the context of 2025," Mordue said. He called the initiative "one more thing." The new incentive was contained in U.S. President Donald Trump's so-called "big beautiful bill," which became law on July 4. It allows some taxpayers to deduct up to $10,000 US of interest payments annually on loans for new American-made light-duty vehicles from 2025 through 2028. Tax incentive follows tariffs targetting Canadian auto sector It only applies to vehicles purchased for personal use, not fleet vehicles or commercial vehicles, and the deduction phases out for individuals with incomes between $100,000 and $150,000 or joint taxpayers with incomes between $200,000 and $250,000. Its introduction follows Trump's decision to levy 25 per cent tariffs on Canadian-assembled automobiles and auto parts that are not compliant with the Canada U.S. Mexico free trade agreement (CUSMA). Industry executives have lobbied against the tariffs arguing they will drive up vehicle prices for consumers. But, Trump pledged while campaigning last year to make interest on car loans tax-deductible, saying it would make car ownership more affordable and "stimulate massive domestic auto production." At a 9.3 per cent interest rate, an average new vehicle buyer could save about $2,200 on taxes over four years, according to Jonathan Smoke, chief economist at Cox Automotive. Asked about the impact of the provision, Mordue said, "it has an effect around the margins … and all I can say is it's not positive, but frankly, there's a lot more devastating things happening to the Canadian automotive industry right now than that aspect." U.S. automobile dealers sold 15.9 million new light vehicles last year, a little over half of which were assembled in the U.S, according to Cox Automotive. It says around 60 per cent of retail sales are financed with loans. An estimated 3.5 million new vehicle loans could be eligible for the tax break this year, if purchasing patterns stay the same, Smoke said. The tax break applies to vehicles assembled in the U.S., no matter where the company making them is headquartered. Different levels of U.S. assembly All Tesla vehicles sold in the U.S. are assembled in the U.S. So are all Acura brands, the luxury model of Japanese automaker Honda. Last year, 78 per cent of Ford vehicles sold in the U.S. were assembled in the country, according to Cox Automotive. General Motors assembles all of its Cadillacs in the U.S. But just 44 per cent of its Chevrolets sold last year were assembled in the U.S., and just 14 per cent of Buicks, according to Cox Automotive. That's a lower U.S-assembled rate than Honda (60 per cent), Toyota (52 per cent) and Nissan (48 per cent), which all are headquartered in Japan. The jury is out on whether the tax break will boost vehicle sales in the U.S. At Bowen Scarff Ford in Kent, Wash., customers started asking about the auto loan tax deduction before Congress had even taken a final vote on the tax-cut bill, said general manager Paul Ray. "I think it's going to help incentivize vehicle purchases through this year," Ray said. Celia Winslow, president and CEO of the American Financial Services Association, concurred. "For some people deciding — 'Should I buy it; should I not?' — this could be something that tips the scale," she said. Others remain sceptical. According to Smoke's math, the average annual tax savings is smaller than a single month's loan payment for a new vehicle. "I don't think it moves the needle on somebody on the fence of buying a new vehicle or not," Smoke said "But I think it could influence their decision to finance that vehicle instead of paying cash or instead of leasing a vehicle."
