Potential future EV credit changes [NO POLITICS]

[metroshot]

Right now California has extra $1500 so it is $9000 now which is good enough for me.

Yes, $1500 CFFR is taken at point of sale (dealer).
However, the $7500 tax credit is taken at the end of the year (assuming you have a fed tax liability over $7500).

Then don't forget the state and local rebates you may qualify after purchase...

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[BennyTheBeaver]

Yup, in Oregon Dealers that are on an approved list can take $2,500 right off the initial price for the Oregon rebate. Not having any sales tax is a nice little $2k savings too. Utilities in Oregon also have $500-$1000 rebate for EV's and Chargers.

 

[EVSport7]

Yes, $1500 CFFR is taken at point of sale (dealer).
However, the $7500 tax credit is taken at the end of the year (assuming you have a fed tax liability over $7500).

Then don't forget the state and local rebates you may qualify after purchase...

Just checked the website, changing to $750 on 11/2. Probably will be gone by the time the Lightning rolls out

 

[Erik]

Just checked the website, changing to $750 on 11/2. Probably will be gone by the time the Lightning rolls out

At to that that the 10% sales tax in California and the Lightning Pro is $5,750 cheaper in Oregon.

 

[Brian Head Yankee]

Except who wants to live in Oregon?

(you were begging for a little ribbing)

 

[Sdctcher]

Edit Note:
There are newer threads that discuss the BBB Plan but I have chosen to add my comments here because this older thread covers the same questions that were being discussed way back when, when we thought BBB was dead and buried.

The announcement today that the new, revised, Build Back Better Plan now seems to be assured of becoming law this year presents a new set of unanswered questions to some of us.

"Senate moves forward with EV tax credit reform, Tesla (TSLA) to be included back and more"

https://electrek.co/2022/07/27/senate-moves-forward-ev-tax-credit-reform-tesla-tsla/

1. When would it become effective and how would it effect sales already completed up to now in 2022?

When does the Point-of-Sale Rebate begin.

2. For those of us planning to sell stock in 2022 to reach the old tax liability threshold of $7,500 for taxes filed in 2023, do we now get the new $7,500 tax credit as a rebate instead and taxes owed no longer applies?

I was getting ready to pull $30,000 out of my IRA (in order to get my 2022 income high enough to get the full $7,500 Tax Credit. Now, what do I do?

3. For sales of Lightnings (think Platinum) after the effective date in 2022 not now get their expected $7,500 tax credit for taxes filed in 2023 because the truck's MSRP is over $80,000?

The old definition of MSRP did not include Destination Charges so my new Lariat at $80,034 (which included Destination) would now still qualify under the new law.

There are many other tax questions now up in the air that I am sure will only become clearer when IRS has to interpret them and write the new tax forms for next year.

For Nerds who want to research the new Bill (H.R. 5376 ‘‘Inflation Reduction 5 Act of 2022’’ )

PDF Copy Revised 7/28/22

https://www.democrats.senate.gov/imo/media/doc/inflation_reduction_act_of_2022.pdf

 

[ShirBlackspots]

 

[SmokingtheMeats]

This is not accurate. On the same post, in the comments it is spelled out it is not retroactive.

 

[ShirBlackspots]

This is not accurate. On the same post, in the comments it is spelled out it is not retroactive.

As they say, it's based on what they understand from reading, so it's their opinion.

 

[SmokingtheMeats]

As they say, it's based on what they understand from reading, so it's their opinion.

Sure, but the OP corrects it in a different thread.

 

[Sdctcher]

The way I read this is the Transition Rule only applies to trucks placed in service on or after the day the new law is enacted if they were purchased before the law was enacted. Trucks we are now driving must go under the old law (including no limitation on MSRP, a tax Credit not a rebate, no income limitation).

Trucks which go into service on or after the new law have the option.

Page 386-87

(l) TRANSITION RULE.—Solely for purposes of the
application of section 30D of the Internal Revenue Code
of 1986, in the case of a taxpayer that—

(1) after December 31, 2021, and before the
date of enactment of this Act, purchased, or entered into a written binding contract to purchase, a new qualified plug-in electric drive motor vehicle

(as de-fined in section 30D(d)(1) of the Internal Revenue Code of 1986, as in effect on the day before the date of enactment of this Act),

and

(2) placed such vehicle in service on or after the
date of enactment of this Act, such taxpayer may elect

(at such time, and in such form and manner, as the Secretary of the Treasury, or the Secretary’s delegate, may prescribe)

to treat such vehicle as having been placed in service on the day before the date of enactment of this Act.

 

[Ffxdude]

The way I read this is the Transition Rule only applies to trucks placed in service on or after the day the new law is enacted if they were purchased before the law was enacted. Trucks we are now driving must go under the old law (including no limitation on MSRP, a tax Credit not a rebate, no income limitation).

Trucks which go into service on or after the new law have the option.

Page 386-87

(l) TRANSITION RULE.—Solely for purposes of the
application of section 30D of the Internal Revenue Code
of 1986, in the case of a taxpayer that—

(1) after December 31, 2021, and before the
date of enactment of this Act, purchased, or entered into a written binding contract to purchase, a new qualified plug-in electric drive motor vehicle

(as de-fined in section 30D(d)(1) of the Internal Revenue Code of 1986, as in effect on the day before the date of enactment of this Act),

and

(2) placed such vehicle in service on or after the
date of enactment of this Act, such taxpayer may elect

(at such time, and in such form and manner, as the Secretary of the Treasury, or the Secretary’s delegate, may prescribe)

to treat such vehicle as having been placed in service on the day before the date of enactment of this Act.

Correct you buy this year you are under the old rules. If you buy next year you have the 80k cap and get point of sale.

 

[Amps]

A January-delivered 2023 Chevy Bolt EUV sure looks good, if they don't raise the price.
(And, if the legislation is enacted)

 

[Sdctcher]

Correct you buy this year you are under the old rules. If you buy next year you have the 80k cap and get point of sale.

Sign a binding contract to buy after Jan 1, 2022 and up to the date the law goes into effect and you can go under existing law including no MSRP Limit and the tax credit applies to your 2022 tax liability (No Rebate; Only a Tax Credit).

Or

You can option to go under the new law and the truck must be under $80,000 and you must get a $7,500 Rebate with no limitation against your tax liability for 2022.

Still up in the air is the IRS definition of MSRP. The way I read it is that Ford includes Destination Charges in MSRP which the IRS will deduct out to get the real MSRP.

So...My Thought is:

If you have not yet taken delivery (signed a BINDING CONTRACT) and/or your Real MSRP is over $80,000 and you want a Rebate (guaranteed $7,500) instead of an Up-To $7,500 Tax Credit on your 2022 Taxes (Lower Income Buyers):

You ask the Dealer to hold off delivery for the next few weeks until the new law is signed.

 

[bryan995]

The current $7500 tax credit has no income limit.
The first form of the BBB had a 400k/800k limit.
This new form of the BBB has a 150k/300k limit.

The race is on to take delivery before this passes :/.

Surely folks buying a 80-120k truck have HHI income exceeding $300k. Even the 800k was pushing it

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