Agent Orange: Friendly fire that keeps on burning. | Practically there is little difference between them, other than Sec 179 and bonus depreciation can be used by farmers and other businesses to write off and thus reduce their tax liability by more than a simple $7,500 tax credit will allow. The problem, I think many have with the EV tax credit is that it can help a man working for wages, to reduce his tax burden when buying a vehicle used to get him back and forth to work or use for pleasure. Additionally, EV tax credit is non-refundable so if the working guy doesn't have enough tax liability, the excess credit is forever gone for him. Bonus depreciation can be carried forward to a year when tax liability is more than zero. All things considered, I think the working man would rather have sec. 179 and bonus depreciation as it would be more beneficial and flexible. Oh, and please spare me the idea that all farm vehicles are used solely for business every mile and all non-business use is accounted for on their tax returns. |