The Internal Revenue Service is still working out how to implement the climate tax provisions in the Inflation Reduction Act. The tax agency and its parent Treasury Department issued some preliminary guidance in August regarding the electric vehicle (EV) tax changes. The IRS also is seeking public comment on EV rules, as well as the other aspect of the other energy tax benefits in the new law. Meanwhile, states also are taking steps to deal with how the federal energy tax changes could affect their revenues. New state-level EV charges: "The increasing popularity of hybrid and electric vehicles is shrinking... Read more →
Energy
Updated Oct. 6, 2023, to reflect added Hurricane Ian tax relief and new filing deadline. Before you and your family celebrate Halloween, check out these October tax moves. Your calendar isn't wrong. We're already into the first week of October, the beginning of the fourth quarter of the year. Once you get through repeating (like me) "Already?", it's time for the annual fall push. Between picking out your Halloween outfit and locating a secure hiding place for the holiday treats that your family can't find, it's time to make some tax moves. Here are four tax tasks that you need... Read more →
Inflation is still a concern, for consumers and politicians, but it is easing a bit (at least for some consumers). One reason for the change is falling gas prices. GasBuddy reported on Sept. 12 that for the thirteenth consecutive week, the nation’s average per-gallon gas price dropped. It went to $3.67 per gallon, down 7.6 cents from a week ago. AAA's daily tracker shows a Sept. 15 national per gallon average of $3.698. But those are averages. Your pump prices may vary. Patrick De Haan, head of petroleum analysis at GasBuddy, noted in the latest analysis that there are "drastically... Read more →
Singer-songwriter James Taylor provided the soundtrack for the White House's Sept. 13 celebration of the enactment of the Inflation Reduction Act. (White House photo via Facebook) The Biden Administration this week celebrated the enactment of the Inflation Reduction Act (IRA) with a ceremony on the White House lawn. And while a government report on inflation that came out the same day warned of continuing inflation costs, President Joe Biden and attendees didn't let the new dampen the festivities. The White House insists that the IRA will work as planned, and Biden touted the law's provisions, including the climate-change-prompted energy provisions,... Read more →
The good tax news for environmentally conscious drivers is that the electric vehicle (EV) tax credit is back. The bad tax news for environmentally conscious drivers is that it's not all that easy to claim the reworked $7,500 EV credit. The Treasury Department and Internal Revenue Service, however, are trying to smooth that road a bit. They've issued some initial guidance on the new EV tax credit changes. EV tweaks in the inflation bill: With President Joe Biden's signing yesterday, Aug. 16, of the Inflation Reduction Act, it's highly touted climate protection provisions will be taking effect. One followed closely... Read more →
More of my Austin, Texas, neighbors could be driving (and recharging) electric vehicles if the recently agreed-upon economic bill makes it into law. (Photo by Kay Bell) As the tax world frantically thumbs through the Democrats 725-page economic plan, one thing is clear. Makers of electric vehicles and the folks who want to buy them are winners. The Inflation Reduction Act of 2022, the catchy (OK, as far as political monikers are concerned) new name for the measure that salvages some of President Joe Biden's retooled Build Back Better proposals, was worked out this week by Senate Majority Leader Chuck... Read more →
Rail travel could save you some European Union automotive fuel taxes, maybe enough for a nice meal in the train's dining car a la the one Willem Dafoe's character enjoyed (or not, judging by his expression) in the 2017 film version of Murder on the Orient Express. (Photo courtesy 20th Century Fox) When I think of European travel, I immediately envision a train. OK, maybe I've watched Murder on the Orient Express (multiple versions) or Before Sunrise or A Little Romance or various Wes Anderson movies too many times. Still, for an American, particularly one who's lived most her life... Read more →
Charging a Chevrolet Bolt EV outside a Go Forth electric-car showroom in Portland, Oregon. (Photo courtesy Forth) Governments use a variety of tax breaks to help shape their citizens' actions. In addition to the perpetual debate as to whether this is good or bad public policy, there's also the matter of which tax benefits should be used. When it comes to electric vehicle (EV) purchases, a recent study found that those interested in the alternative fuel autos prefer rebates to existing tax credits. Plus, the different financial reward method would be more cost effective for Uncle Sam. Pay then claim... Read more →
The White House's proposed federal gasoline tax three-month holiday proposal is not just stalled. A metaphorical Congressional tow truck has pulled it from the legislative roadside where it was sputtering. The main reason is, as noted earlier, is surprisingly united Capitol Hill opposition to waiving the 18.4 cents per gallon federal gas tax. In fact, lawmakers also have been united in refusing to increase it. It hasn't been hiked since 1993. Another reason is, despite the grousing and social media posts of auto fill-up pump prices, people are still hitting the roads, at least early this summer. That's taken some... Read more →
Shutterstock The hubby and I are spending the Independence Day holiday like we usually do. We're staying home. Even in our younger days, we didn't travel on holidays. We also lived in places where fireworks, the big draw on the Fourth of July, were easily accessible or visible from our homes. Of course, there was that year in Washington, D.C., where our car almost got towed, but that just added excitement to the festivities on the National Mall. Almost 48 million people, however, disagree with the way the hubby and I celebrate July 4th, according to AAA. That's how many... Read more →
Sen. Ron Wyden chairing a recent Senate Finance Committee hearing. (SFC YouTube video screenshot) President Joe Biden's three-month gas tax holiday seems to be sputtering, so some are turning their attention to another energy approach. They want to impose a windfall profits tax on oil companies. "Exxon made more money than God this year," Biden said in a June 10 address before Port of Los Angeles dockworkers and union representatives, but they are not using those profits to drill more. Biden followed that appearance with a letter to top oil executives urging they boost the supply of gasoline, diesel and... Read more →
Gasoline prices continue to drop a bit in suburban Austin, Texas. (Photo by Kay Bell) President Joe Biden today asked Congress to suspend federal fuel taxes for three months. He's also urging states to suspend their own gas taxes or provide similar relief. The White House's time frame, outlined in a fact sheet, calls for the 18.4 cents per gallon (cpg) gasoline and 24.4 cpg diesel non-collection period to start in July and run through September. In announcing temporary excise tax holiday proposal, Biden said it was designed to help motorists during the busy summer travel season. House and Senate... Read more →
Nowadays, you might have to empty your wallet to fill up your car's tank. However, federal gas tax relief or other help might be available as soon as this week. (Photo by Jen R via Flickr CC) On my way to an appointment today, I passed two gas stations. Both advertised regular at $4.69 a gallon. Yes, my area of Austin, Texas, has escaped (so far) the $5 per gallon average that recently was recorded across the United States. Nationally, the per gallon price for regular has since dropped to $4.981. Yay? And yes, I stopped at one station and... Read more →
General Motors offered a sneak peek this week of the 2024 electric Chevrolet Blazer, due to be fully revealed next month. The above photo of the family-sized, SS performance Blazer EV model, expected to go on sale in spring 2023 starting at around $40,000, was tweeted by GM CEO Mary Barra. Regardless of what you think of Elon Musk, he's made Tesla the electric vehicle (EV). Even if you can't afford one, whenever someone says EV, it's the first vehicle most of us envision. Meanwhile, the other automakers are working to get some of the attention and, of course, customers.... Read more →
Gasoline prices at a suburban Austin, Texas, gas station just before the Memorial Day weekend. (Photo by Kay Bell) Shortly before the Memorial Day holiday, gasoline prices surpassed $4 per gallon in every U.S. state for the first time. Transportation experts predict gas soon will exceed $5 per gallon nationally. Higher fuel prices didn't stop people from hitting the road during the Memorial Day break. But that was a special travel event. It was a three-day holiday after years of COVID pandemic suppressed transportation. Just a week later, people's lives are back to what passes for normal. More offices are... Read more →
Electric vehicle charging in a workplace garage. (Photo by Kay Bell) One of our errands this week was getting the hubby's vehicle inspected. It's required to renew the auto's annual state registration. We get to repeat the process in six months for my car. But when it comes to my Chevy sedan, I soon might be writing the state of Texas a larger check. I drive a hybrid and there's renewed interest in adding an annual surcharge to vehicles that don't rely solely on fossil fuel. Welcome, but pay, please: Sure, Lone Star State officials were thrilled when Elon Musk... Read more →
Photo by Anna Shvets from Pexels Inflation is the biggest domestic, and political, concern right now. And after months of waiting, the Federal Reserve's expected reaction to rising prices came last week. The board members of the United States' central bank raised interest rates on Wednesday, March 16, for the first time since 2018. The bump of a quarter percentage point to its benchmark rate is the first of expected increases to combat the country's highest inflation in four decades. When all is said and done, most financial observers say the previously near-zero interest rates to be near 2 percent... Read more →
Homeowners know that keeping a residence in shape is a continual effort. Most of the time, we're just trying to keep things running. That maintenance is necessary, but it doesn't do much for us when it comes to taxes. But if you decide that instead of just fixing that cranky old furnace, it's time to go greener, you could get a tax break. Geothermal heat pumps are just one of the home upgrades that qualify for the renewable energy tax credits. If you took advantage of any of them in 2021, be sure to claim them on the tax return... Read more →
Tanker unloading crude oil (Photo by Hervé Cozanet, Marine-Marchande/Wikipedia Commons) Energy is on a lot of folks' minds right now. Europeans are keeping even warier eyes on Russia's invasion of Ukraine after an attack set off a fire at the continent's largest nuclear power plant. The immediate not horrific news is that there's no sign of radiation leaks at the Zaporizhzhia facility. However, damages to the infrastructure have left the nearly 53,000 residents of the Ukrainian city of Energodar almost without heat. It's unclear what the Russians, who've taken control of the plant grounds, are planning to do with the... Read more →
Even before Russia invaded Ukraine, gasoline prices in the United States were going up due to that Econ 101 basic supply and demand. During the COVID-19 pandemic, more U.S. workers starting doing their jobs remotely. Working from home meant no commuting, so fewer vehicle fill-ups. Oil producers, notably the OPEC (Organization of the Petroleum Exporting Countries) cartel, responded by cutting production sharply in 2020. Since then, things have returned to, for lack of better words, more normal. Demand for oil and products like gasoline has surged since pandemic lows. But production has not kept up. More people wanting a scarce... Read more →