Proposed Tax Plan would kill the $7500 electrical vehicle credit

The tax plan proposed by House Republicans has hiding in it the repeal of a $7,500 tax credit that has arguably been one of the main drivers of electric vehicle purchases. Removing the credit would almost certainly adversely affect sales of electric cars just as they are beginning to get affordable to the general public.

Quite clear, isn’t it! Section 30D is the part of the Internal Revenue Code that offers a credit to purchasers of qualifying electric cars. Assuming the credit has been used in the case of purchase of most electric cars, it has saved taxpayers around a billion dollars since it took effect in 2010.

One could argue that $7,500 isn’t going to make much difference when a fully loaded Model S pushes a hundred grand, but it has certainly helped those cars become competitive at the same prices as other luxury vehicles. And cheaper options like the Leaf would likely never have taken off if they sold for their full price of around $40K rather than being closer to $30K.

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Californians call your congressional representative – House tax plan would hurt Cali homeowners

A big issue is that California has the highest state income tax rate in the nation but among the lowest property tax rates. The bill dramatically scales back a deduction for state and local taxes, limiting the deduction to just property taxes and capping it at $10,000. About a third of California taxpayers took the deduction in 2015.

The GOP tax plan unveiled Thursday would be a blow to many California taxpayers. That’s not a deal breaker for California’s Republicans, who so far seem optimistic the bill is the best deal for their constituents.

Even as some Republicans from states that would also lose out under the plan threatened to vote no, Californians’ reactions ranged from merely skeptical to enthusiastic.

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San Diego home price increases outpace nation

San Diego had the third highest annual home price increase in the nation in August, a distinction not reached since 2014, said a top real estate index released Tuesday.

San Diego County home prices have risen 7.8 percent in a year, said the S&P Case-Shiller Indices, which are adjusted for seasonal swings. Only Seattle and Las Vegas had bigger increases in the 20-city index.

In the last two years, the San Diego region has averaged around 10th place in the index, making August’s jump noteworthy to industry watchers. San Diego’s yearly increases outpaced the nationwide gain of 6.1 percent and the rest of California.

“San Diego clearly, suddenly, jumped into the big leagues,” said David Blitzer, managing chairman of the Index Committee at S&P Dow Jones Indices.

The indicies go beyond just looking at the median home price of a region, evaluating home transaction prices to track repeat sales of identical single-family houses as they turn over through the years.

Cheryl Young, senior economist at Trulia, said San Diego’s housing market is affected by lack of available homes for purchase, but also its ranking could be affected by other markets experiencing changes. For instance, Dallas has seen its year-over-year increases slow as Texas home building alleviates some demand.

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