Ford EV Tax Credits May Run Out Sooner Than Expected

[Roy2001]

Looks like I'm calling my dealer tomorrow and removing Max Tow.

Unless you will take delivery next year, why need to worry? Current tax credit does not have limitation.

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[SmokingtheMeats]

Unless you will take delivery next year, why need to worry? Current tax credit does not have limitation.

I’m in the same boat. There are some showing it’s retroactive and some saying it’s after Jan 1. No one seems to know if D&D is included or not. With that said today is the last day to make a change so we need to act now

 

[FlasherZ]

I’m in the same boat. There are some showing it’s retroactive and some saying it’s after Jan 1. No one seems to know if D&D is included or not. With that said today is the last day to make a change so we need to act now

From what I've read, the MSRP limits and AGI limits take effect for any vehicle put into service after December 31, 2022. My citations are in the post above. I hope I'm not wrong, but I certainly could be. Reading that bill ("replace the comma with a square checkmark icon in paragraph 7, word 6, letter 5") is insane.

At least Illinois offers a mark-up version that shows the changes in the actual rule as opposed to the instructions as to what to modify.

What's confusing is that some of the items are retroactive, some are not.

 

[Diabolical!]

I hope 22 are going to be all good. Tried reading through the text but it difficult to read. Found this online stating retroactive to December 31st 2021

Wow, if this is accurate and it passes, I will be getting $7,500 back for the Chevy Bolt EUV I bought for my wife last month, and I already got $6,800 off of MSRP in GM and dealer discounts. Needless to say, I hope it passes.

 

[luebri]

So the big questions... for the $80k threshold.

1) If we take delivery in 2022 can we use the old Tax credit rules?

2) Is the $80k threshold Base MSRP or Total MSRP.

3) What constitutes a binding agreement.

4) If this is like a bunch of tax law it may be left to the interpretation of you and your Tax preparer.

From Ford's order page. "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."

 

[Trick]

For NJ tax rebate they do not include D&D. $4k under 45K and $2K under 55K. And no sales tax on EV's. Hoping the fed is the same

 

[personalt]

Which is why we need an EV point of sale credit for vehicles under $40k and families with income under the national median.

Any EV credit for a luxury vehicle makes no sense. The world changed since the credit was put in place, the government needs to change the credit. It doesn't need to be a simple no or yes either, let's refine the credit to spark development of affordable EVs.

Most people under the national medium don't pay income taxes so why would they need a tax credit

 

[personalt]

“The deal also includes limits on the price and income eligibility of purchasers.”

curious what the limits are

If it is anything like the other stilumus packages the limit will be about 5K less then my wife and I make - happens every time.

 

[personalt]

$300k married/150k single isn’t the same across the US. Wish the income limits were somehow indexed to COL similar to fha loan limits.

Seriously.... In parts of NJ a decent 3-4 bedroom will cost you 1.3 million with 26K in property taxes. so your housing costs are six figures and you are paying 100K income taxes.

 

[KevinC]

Does anyone have any insight on where next year's lightning batteries are made/sourced from geographically? Is that going to kill 2023 rebates for trims that source Chinese batteries? The more I look into the battery requirements it just seems like a nebulous mess.

 

[Trick]

I do not think that counts for next year, It increase year over year after 2023.

 

[greenne]

So the big questions... for the $80k threshold.

1) If we take delivery in 2022 can we use the old Tax credit rules?

2) Is the $80k threshold Base MSRP or Total MSRP.

3) What constitutes a binding agreement.

4) If this is like a bunch of tax law it may be left to the interpretation of you and your Tax preparer.

From Ford's order page. "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 wouldn't necessarily count on the IRS interpretation of MSRP being the same as Ford's. Hell, sometimes even various government agencies don't agree on terminology...

I'm not saying D&D will not count towards the $80k...but there is the possibility it won't. There is also then possibility the IRS will go off base MSRP (that is what they do in NY for their EV rebates)

 

[KevinC]

I do not think that counts for next year, It increase year over year after 2023.

The bill through 2023 would require 40% of the battery minerals for electric vehicles to be mined and processed in the U.S. or partner countries or recycled in North America, rising to 80% after 2026. The target for North American battery-component manufacturing and assembly would rise from 50% to 100% after 2028.
https://www.wsj.com/articles/auto-m...ath-to-electric-vehicle-tax-break-11659614402

 

[jaykoolzboy]

So the big questions... for the $80k threshold.

1) If we take delivery in 2022 can we use the old Tax credit rules?

2) Is the $80k threshold Base MSRP or Total MSRP.

3) What constitutes a binding agreement.

4) If this is like a bunch of tax law it may be left to the interpretation of you and your Tax preparer.

From Ford's order page. "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."

Just from all the information I gathered,

1. Theoretically , any finalized purchase deal before DEC 31 2022 11:59PM would be qualifying for the old EV tax credit. However, we still don't have the final resolution from IRS yet on exactly how it would work.

2. Total MSRP - it will be purely based on the MSRP of the specific vehicle you are purchasing, nothing more , nothing less. Only Pro and XLT SR would be qualifying for the new credit (assumes Ford resolve the Battery Content origination issues)

3. Purchased deal before Dec 31 2022 , that means we might have the car delivering in 2023 but the deal must be finished before that time frame. I believe Fisker is doing something keep their $7500 Old EV tax credit.

4. If 2020 - 2022 isn't more confusing, we probably need to lecture many CPA on the EV credits.

 

[Pioneer74]

Just from all the information I gathered,

1. Theoretically , any finalized purchase deal before DEC 31 2022 11:59PM would be qualifying for the old EV tax credit. However, we still don't have the final resolution from IRS yet on exactly how it would work.

2. Total MSRP - it will be purely based on the MSRP of the specific vehicle you are purchasing, nothing more , nothing less. Only Pro and XLT SR would be qualifying for the new credit (assumes Ford resolve the Battery Content origination issues)

3. Purchased deal before Dec 31 2022 , that means we might have the car delivering in 2023 but the deal must be finished before that time frame. I believe Fisker is doing something keep their $7500 Old EV tax credit.

4. If 2020 - 2022 isn't more confusing, we probably need to lecture many CPA on the EV credits.

Lariat SR would qualify too with a $74,474 starting price.

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