EV Tax Credit Expansion Deal Reached by Senate

[sotek2345]

Well this is a freaking curveball... order is in place for delivery yet this year at Total MSRP of $80,759.00. Gonna be real pissed if I dont get any EV credit after this.

From Fords order summary "Total MSRP: Is Base MSRP plus Total of Options, Destination and Delivery Charges. Excludes taxes, title, and license fees. May not be the price at which the vehicle is sold in the trade area."

I hear you. Mine is $80,094 because I added Max Tow. I am hoping that some of the information I have seen that it is a Jan 1, 2023 effective date holds true. If not, will have to see if my dealer will take a small nonrefundable deposit to put me under a "binding contract" before the effective date.

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[shutterbug]

Well this is a freaking curveball... order is in place for delivery yet this year at Total MSRP of $80,759.00. Gonna be real pissed if I dont get any EV credit after this.

You do realize that (at least for now) the law takes effect 1/1/2023?

 

[O’Majestic1’slightnigF150]

Ford has already killed the ‘23 Platinum. Seats are deleted. Fixed running boards. If the “new better BBB” passes with these cutoffs I just might walk away from my Platinum if the dealership does not show me the deposits on the contract, FordProtect Premium with triple care at $1 Over…. There’s only so much a feller can take and be able to look in the mirror. Good luck selling a Lariat for Platinum price with none of the goodies.

 

[luebri]

You do realize that (at least for now) the law takes effect 1/1/2023?

From what I read that was still in debate... does the bill go into effect when it is passed or 1/1/22. If so it is then dependent on what constitutes a "binding agreement". Can you point me to where I can see that clearly defined in the bill that if I take order in 2002 I am good?

 

[Tmack7]

Ugh, have a MSRP of $80,689 on my invoice. Really looking forward to @TaxmanHog's take on this as I am not a public accountant. Wondering about seeing if dealer can still add FCSP Delete and then I could just buy it separately...

We’re you able to decouple the fcsp or did you even try?

 

[bryan995]

What's everyone's thoughts on trim/ price thresholds now with this new info?

No pro? Or 45000
Xlt 58. Xlt + 68
Lariat 70 lariat + 79999
Platinum forget about it

Pro SR for 27500 after the credit. That’s just STUPID.

 

[Nick Gerteis]

Pro SR for 27500 after the credit. That’s just STUPID.

Did you mean 37500?

 

[Krypto]

1. Manufacturer caps eliminated. (Page 370, line 15)
2. Credit applies for vehicles purchased beginning January 1, 2023. (Page 386, line 1).
3. Transition provision for EVs with written sales orders dated in 2022 prior to the date of President signing the bill but delivered in 2023 allows purchaser to claim the “old” credit in 2023. (Page 386, line 20).
4. Vehicle must be assembled in North America to qualify for new credit. (Page 366, line 15).
5. North American assembly requirement applies to vehicles sold after the date of adoption of the bill. (Page 386, line 3)
6. $7,500 credit is broke into two binary pieces meaning the vehicle either qualifies for each piece of the credit or it doesn’t. No longer based on size of battery. (Page 366, line 6)
7. $3,750 of the new credit is based upon the vehicle having at least 40% of its battery critical minerals from the United States or countries with a free trade agreement with the United States. This is a list of countries with free trade agreements with the US.(Page 371)
8. The other $3,750 of the new credit is based on at least 50% of the battery components of the vehicle coming from the United States or countries with a free trade agreement with the US. (Page 372, line 13)
9. The 40% minerals requirement increases to 50% in 2024, 60% in 2025, 70% in 2026 and 80% in 2027. (page 371 line 23)
10. The 50% battery components requirement increases to 60% in 2024, 70% in 2026, 80% in 2027, 90% in 2028 and 100% in 2029. (Page line 373)
11. The government has until the end of the year to develop guidance on the battery requirements. (Page 374)
12. Beginning in 2025, any vehicle with battery minerals or components from a foreign entity of concern are excluded from the tax credit. (Page 374, line 20).
13. One credit per vehicle. (Page 375, line 12)
14. Modified gross income limit of $150k for individuals, $225k for head of household, and $300k for joint returns. Definition of MAGI (page 375, line 22)
15. MSRP of vehicle must be $80k or less for SUVs, Vans and Trucks. $55k for all other vehicles. (Page 377, line 4)
16. Dealer can apply credit at time of sale. Dealer must disclose to buyer the MSRP of the vehicle, the applicable tax credit amount and the amount of any other available incentive applicable to the purchase. (Page 378, line 6)
17. Credit terminates December 31, 2032.

 

[Krypto]

Found the above info on another site.

 

[VTbuckeye]

Does this new bill supercede the rules with the 200k cutoff? Could foreign built EVs still qualify based on the old "we haven't sold 200k vehicles" or would they be be excluded?

 

[Texas Dan]

I think you guys are worried about nothing. The tax credit allows the auto manufacturers to raise prices and increase profits. Just because there is a tax credit does not mean YOU will pay any less.

We know that people buying low cost trim levels will think they are getting a deal because they get the tax credit but actually that’s where the manufacturers will be making profits. And we know that people buying high end EVs won’t care because they are already paying too much. The question is what’s going to happen to the price of vehicles with an MSRP near $80k?

I think the price of vehicles just over $80k will have to come down or the manufacturers will have to add more features to make people think they are getting more value than lower priced vehicles with the tax credit. Hopefully most of these questions will get sorted out before my reservation turns into an order next year (or the next). This is of course a big win for the EV community as it will make it more profitable to build EVs giving manufacturers incentive to build more.

 

[PV2EV]

I hear you. Mine is $80,094 because I added Max Tow. I am hoping that some of the information I have seen that it is a Jan 1, 2023 effective date holds true. If not, will have to see if my dealer will take a small nonrefundable deposit to put me under a "binding contract" before the effective date.

You ordered the same config the day I did. The dest at the time was $1,695 and the total was $79,994. When mine later went up buy $100, Ford said it was the dealers fault, and the dealer said it was Ford's. I was worried about this exact scenario, so pushed hard to finally get the dealer to agree to the original price, so I am still under $80k.

You might ask you dealer for the same.

 

[Texas Dan]

Does this new bill supercede the rules with the 200k cutoff? Could foreign built EVs still qualify based on the old "we haven't sold 200k vehicles" or would they be be excluded?

Good question. The summary above says that the new credit rules apply to all EV sales starting 1-JAN-23. There are some auto manufacturers overseas that have been very important to EV development in North America that will now be locked out of the tax credit unless they start manufacturing in North America.

I’m afraid there are going to be some very unhappy auto manufacturers. I see this new tax credit rule has the potential to be very disruptive to the auto industry. I can already envision the books and movies about how the 2022 EV tax credit changed the auto industry.

 

[luebri]

Transition provision for EVs with written sales orders dated in 2022 prior to the date of President signing the bill but delivered in 2023 allows purchaser to claim the “old” credit in 2023. (Page 386, line 20)..

so a few questions from this?
1) what constitutes a sales order?
2) what about written sales orders after he signs delivered in 2023
3) what about any vehicle regardless of order status delivered in 2022 after he signs?

 

[bryan995]

Did you mean 37500?

40000 - 12500 = 27500 last I checked !

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