Report: Final GOP Tax Bill Will Retain Tax Credit Allegedly Abused by Tesla Buyers

The final Republican tax bill on which Members of Congress in both chambers will shortly vote retains a key tax credit that has allegedly been abused and used to evade federal income taxes by electric carmaker Tesla purchasers.

That is according to a report from Bloomberg, which notes that “House and Senate negotiators have agreed to spare the electric-vehicle tax credit and wind production tax credit in their compromise package, according to a Republican familiar with the process.”

As reported here, numerous postings at Reddit and Teslarati covering a period of several years indicate that Tesla sales personnel urged buyers to claim tax credits in years when they would legally have been barred from doing so under U.S. tax law.

A tax expert with whom RedState spoke indicated the most plausible explanation for the alleged scheme was that Tesla was looking to “juice” its sales numbers in particular quarters, probably for the purpose of maintaining investor confidence.

The electric vehicle tax credit’s maintenance has been attributed to Sen. Dean Heller, who is facing a tough re-election battle in 2018, but also to Sen. Chuck Grassley, traditionally a strong proponent of tax “incentives” benefiting green energy sources.

Grassley has notably been a primary advocate for the extension of wind power tax credits, including that reportedly included in the final GOP tax package.

Grassley has recently come under fire for reported obstruction and threats of obstruction of EPA and judicial nominees put forward by President Trump.

It was also rumored that he referenced still-to-be-done Judiciary Committee “scope-setting” with regard to the Russia probe in pushing the Trump administration in a pro-biofuels direction while EPA was determining key biofuels regulation.

Grassley, Chairman of the Judiciary Committee, has denied those charges as they related to judges and the Russia investigation.

The GOP tax package is currently in jeopardy, with Sen. Marco Rubio and Sen. Mike Lee uncommitted to voting for its final passage, due to a disagreement with bill writers about the extent of the child tax credit. In addition, Sen. Susan Collins’ vote remains uncertain, due to concerns involving health care reform.