Dumb question maybe, but where does the $80,000 "cap" number for the EV credit come from

[metroshot]

I'd better get the Mustang Mach E....

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[Blainestang]

If Ford reaches 200K during Q3, then you'd still be eligible for full credit during Q4. After that 2 more quarters of reduced credit.

Q3 hit 200,000
Q4 still $7500
Q1 $3750
Q2 $3750
Q3 $1875
Q4 $1875

 

[Tyler Durden]

Q3 hit 200,000
Q4 still $7500
Q1 $3750
Q2 $3750
Q3 $1875
Q4 $1875

Yes, exactly. If they're close enough, Ford could try to time delivery of their 200,000th EV on July 1, 2022, then deluge EV deliveries (as best they can) until the end of the year to enable as many (up to) $7500 credits as they can. IIRC, Tesla sort of did that with the Model 3 ramp.

Alternatively, if they're not close enough on July 1, and for the sake of the F150 lighning ramp, shoot for 200,000th EV delivery on October 1, 2022 for 6 more months of (up to) $7500 credits.

 

[RickLightning]

Sorry, but wrong, Ford will run out by 3Q 2022 even without selling ANY Lightnings, and be phased out by the end of the year. They are already over 160k credits used.

Most people wouldn't agree with your assessment. Ford is at 149,595 as of 9/30/21, and the belief is that in Q4 they added no more than 10,000, bringing their total to maybe 160,000. https://www.irs.gov/businesses/irc-30d-plug-in-electric-drive-motor-vehicle-credit-quarterly-sales

When Ford does use up the 200,000, the phase out begins at the beginning of the second calendar quarter after they reach that number.

So, if they run out in the 3rd quarter, then the phase out begins on 1/1/2023, with 50%, then the next quarter (4/1/22) 25%.

 

[TaxmanHog]

There is no cap right now. 74K and 80k are/were part of bills that didn’t pass. (Build Back Better etc)

Correct the BBB is dead in the Senate, but legislative minds are considering parting out useful sections of the bill, who knows if it come to be...

If anyone is interested in the factors proposed in BBB assuming it's a foundation for a future bill, read what is in HR-5376 under the following heading, note there are some things folks are not talking about, such as HIGH INCOME individuals being phased out of the credit, as far as MSPR value on a lightweight truck, this bill shows $74,000 top limit. 80k might be in some state tax credit regulations.

PART 4--GREENING THE FLEET AND ALTERNATIVE VEHICLES

SEC. 136401. REFUNDABLE NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR
VEHICLE CREDIT FOR INDIVIDUALS.

(a) In General.--Subpart C of part IV of subchapter A of chapter 1
is amended by inserting after section 36B the following new section:

``SEC. 36C. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.

 

[Ccarm6]

Correct the BBB is dead in the Senate, but legislative minds are considering parting out useful sections of the bill, who knows if it come to be...

If anyone is interested in the factors proposed in BBB assuming it's a foundation for a future bill, read what is in HR-5376 under the following heading, note there are some things folks are not talking about, such as HIGH INCOME individuals being phased out of the credit, as far as MSPR value on a lightweight truck, this bill shows $74,000 top limit. 80k might be in some state tax credit regulations.

The income exclusion is $800K filing jointly/$600K HOH/$400K single on the bill, in case anyone doesn’t feel like searching through the bill. The $74K limit does concern me and I wish they would grandfather prior orders or do some sort of phase out since the law is changing during massive EV rollouts…

 

[TaxmanHog]

The $74K limit does concern me and I wish they would grandfather prior orders or do some sort of phase out since the law is changing during massive EV rollouts…

Many times a change of this nature would be effective upon enactment, when the POTUS /s/ the law, OTOH there have been laws that were retroactive, we will have to pay attention to what they are cooking up.

 

[Tyler Durden]

So, if they run out in the 3rd quarter, then the phase out begins on 1/1/2023, with 50%, then the next quarter (4/1/22) 25%.

It's two quarters at 50% and two quarters at 25%. @Blainestang in post #32 has it correct, assuming the 200,000th delivery is indeed in Q3 2022.

 

[Carminus]

Sorry, but wrong, Ford will run out by 3Q 2022 even without selling ANY Lightnings, and be phased out by the end of the year. They are already over 160k credits used.

I already posted " I stand corrected" what's the point of your post?

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