EV, Alt-Fuel Tax Credits Went to Crossovers, Other Cars

2011Enclave
An audit performed by the U.S. Treasury Inspector General for Tax Administration — TIGTA for short — discovered that nearly 20% of all tax credits for electric and alternative-fuel vehicles were filed improperly. This 20% totaled $33 million in tax credits going to people who bought cars as varied as a Buick Enclave — a crossover with a combined mileage rating of 19 mpg — to the non-hybrid Hyundai Sonata.
 
The IRS said it is taking “corrective actions” on the erroneous credits, but whatever is done, the mistakes will be a blow to a program that many believe is artificially aiding the sales of EVs and other vehicles.
 
IRS Misfired on Tax Credit Claims for Plug-in Cars, Audit Finds (Detroit News)

Comments 

Dan

I hope these were honest mistakes on the part of dealers or car owners. Otherwise it is simply disgraceful that people would try to fleece this.

Regardless, for once I am happy that the IRS is functioning well.

Matt C

This is a perfect example of why our tax system is entirely too complicated. Why are we even giving tax credits for expensive under performing EV and Alt-Fuel vehicles in the first place. If you want a vehicle to wear as a badge to show how your saving the planet from the evils of naturally produced fossil fuels, then you should pay for it on your own dime.

Amuro Ray

@ Matt C,

"Why are we even giving tax credits for expensive under performing EV and Alt-Fuel vehicles in the first place."

Did you read the article? It's about people who are trying to SCAM the program with their gas thirsty SUVs, when only fuel efficient/green vehicles qualify. Besides, what under-performing are you referring too? That these vehicles don't zip enuf gas like the SUV, or don't provide you the 0-60 mph times in under 4 sec like you hope?

What you are saying is essentially identical to "there's nothing wrong with a criminal who's robbed someone who's rich - it's the victim who got rich in the 1st place and THAT'S the crime."

There's nothing wrong with someone who's saving the planet. He/she isn't doing it for him/herself only. He/she is doing it for you too! Consider that a reward for his/her good deed.

Amuro Ray

P.S. Although fossil fuel is naturally produced, they AREN'T naturally available. It involves a lot of work and danger, unlike, say, farming vegetables.

More importantly, gasoline is NOT naturally producing. You can try buying crude oil from the oil field and pour it in your vehicle, and see if that works...

Matt C

AR

I struck a nerve, I'm sorry. EV and Alt fuels are not saving the planet, if anything they are making things worse. The damage done by mining the metals for batteries are far worse than drilling for oil. Refining "vegetables" and transporting them cost more energy than you make. So ethynol is NOT naturally product either.

My point with the tax credits are more along the lines of a flat or simplified tax system, getting rid of credits and subsidies; putting the power in the consumers hand over the governments hands. You are right people cheating the tax credit is wrong and should be punished accordingly. I trust the ingorant red neck I see sitting next to me in church more than I do the government when it comes to handling money.

There is a lot of misinformation out there when it comes to being "green", and I deal with that crap in my line of work on a regular basis. If there is an alternative fuel out there that is cleaner and as efficient or better than fossil fuel, I will be first in line to get it, but don't sell me poop and tell me it's chocolate cake.

P.S. Farmering is no easy task either. My father was a farmer and my friend was a roughneck and both had plenty of dangers to work around.

Matt C

AR,

I forgot to mention, I had a flexfuel Ford Ranger for 11 years and 207K miles on it and the only time that truck did not run like a champ was when I gave it three tanks of ethynol. Plus I have a 2011 Subaru Outback where I average 27 mpg and my friend has a Hybrid Escape that averages 31 mpg. He used this tax credit and still paid $7k more than I did for my vehicle. That right there is the definition of underperforming and expensive.

Troy S.

I expect the guilty ones to be rewarded for their misbahavior. That seems to be the trend in the Auto industry.

Here's one example: The multi-Billion dollar bail outs with subsequent bankruptcy filings AFTER the companies recieved Taxpayer bailout money.... Billions of dollars of COMPANY DEBT went poof into thin air however, the damage control and Billions that will not be paid back by the companies is on the taxpayer backs for many years to come and to add insult to injury, the junk and debt left behind by companies from Detroit, is still there....It disappeared from THEIR balance sheets.

I'd like to see the outcome of this story....Unfortunately it we probably wont...

While in the ultimate analysis, the challenging people that survive the challenging times achieve this due to the fact they've picked to react positively to their predicament. Hard instances in no way final, but hard men and women do. Tough individuals stick it out. Historical past teaches us that every predicament has a lifespan.

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