Build Back Better Bill Dead? Will 2022 Lightning See $7500 from Existing Program?

[Coolbreeze704]

Looks like the like Manchin will be putting this EV tax credit to rest for good or at least many months. Anyone know if Ford has much room to go with the 200,000 ceiling for the existing tax credit. If I am not mistaken it is just Tesla and GM the have hit 200k plus EV sales. I wonder how many reservation holders will see credits on our orders.

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[techguydave]

Estimates I've seen puts Ford hitting 200k around 1Q or 2Q of CY 2023, so you're likely good until at least then. I'd start to get concerned if you're taking delivery 3Q 23 or later.

 

[Coolbreeze704]

Good to hear. Should find out soon but I should be a summer 2022 delivery. #2 at my dealer.

Now this is a tax credit that we use on our 2022 tax filing vs an instant rebate that the BBB bill would have given us?

 

[rdr854]

Good to hear. Should find out soon but I should be a summer 2022 delivery. #2 at my dealer.

Now this is a tax credit that we use on our 2022 tax filing vs an instant rebate that the BBB bill would have given us?

My understanding is that the current federal tax credit is on your tax return, not at point of sale.

 

[TRP]

Currently it is a non-refundable tax credit of $7500. So, that means you have to have enough tax liability to use the full amount.

Example..........You earn enough money that you are required to pay in $16000 in taxes, over the year through your deductions you actually pay in $17000. You would get $1000 refund. Now add in the tax credit. $16000-7500=$8500(the amount you are required to pay after using the tax credit). You actually paid in $17000 in this example, so your refund will now be $8500.

Now, I'm no tax expert and did not stay at a Holiday Inn Express last night, so you should consult your tax person to confirm this. This also does not include any state or local utility incentives that may be available to you.

 

[TRP]

Also........you have to have earned enough income for your tax liability to be high enough to take advantage of the full amount.

If your tax liability is only $5000 for the year, you only get back the $5000. That's the difference between a refundable vs non-refundable tax credit

 

[Kiggulak]

Also........you have to have earned enough income for your tax liability to be high enough to take advantage of the full amount.

If your tax liability is only $5000 for the year, you only get back the $5000. That's the difference between a refundable vs non-refundable tax credit

It's a shame that any unused portion of the tax liability is not put back in the total refund kitty to extend the EV credit beyond the 200,000 trigger for phase out. Although it means Ford Options pricing is almost guaranteed now at least for the 2021 waves.

 

[rdr854]

It's a shame that any unused portion of the tax liability is not put back in the total refund kitty to extend the EV credit beyond the 200,000 trigger for phase out. Although it means Ford Options pricing is almost guaranteed now at least for the 2021 waves.

What is Ford Options pricing?

 

[astricklin]

What is Ford Options pricing?

Ford option is a balloon payment loan. Unlike a lease, you own the vehicle and not the leasing company. However, like a lease there is an agreed upon residual value that on a set date you can chose to return the vehicle to the Ford dealer, 'purchase' the vehicle and resell it to the Ford dealer (if the vehicle is worth more than the agreed residual value), or keep the vehicle and payoff or refinance the remaining amount owed.

 

[Sgt Beavis]

Manchin returns to the negotiating table.

https://www.axios.com/scoop-manchin-new-play-2cb59ff0-1577-44bf-81a4-a0d72b7e9be2.html

 

[greenne]

Manchin returns to the negotiating table.

https://www.axios.com/scoop-manchin-new-play-2cb59ff0-1577-44bf-81a4-a0d72b7e9be2.html

BBB is not quite dead yet. Manchin knows how to pivot to get what he wants..he just put on a show for the cameras. Manchin likes to play both sides of the fence..by saying he was opposed to the big bad "liberal" BBB he can get just enough Repubs/Independents, while passing a slimmed down version with minimal social programs will win him the Democratic vote. He's no dummy, this was his play all along.

Now..what effect this has on the EV credits I don't know...I think Manchin is overall supportive(or at least gutting them isn't his top priority) but I know he doesn't like the union clause in in. My bet is it will be reduced to a flat $7500 refundable credit for all manufacturers.

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