IRS Issues Statement on New Plug-In Electric Drive Vehicle Credit (IRC 30D)

[bfisher]

Can anybody give clarity on the tax credit for MY 23 wave 3 vehicles ordering this year and possibily being delivered this year? Prior to the effective date of the new law going into effect. Thank you

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[VTbuckeye]

I did a reservation for my father and of course it’s in my name at this point for a 2023 Wave 1 Pro Order. In hindsight I wish I would have used his credit card back on May 19th with his name. I have already taken delivery of my Lariat and I placed his order on Aug 11th.

When it arrives at the dealer in 2023 it will be in the new EV rebate law. I make above the single 150k cap. Question is, when I’m filling out the paperwork for the truck, can I have his name on it too, as a co-owner? He’s literally paying for all of it. But, I know my name has to be on as the buyer since I reserved it. Has anyone done this, and if his name is on original paperwork, then he should be able to apply for the credit.!?

Thanks for any insight.

Can he legally change his name to match yours? If my Dad wanted a Silverado EV in a few years he could use my reservation (same first and last name). I get emails from Toyota Everytime their car has an appointment.... I guess you could also get married to someone with low income (unless you are over the 300k limit).

 

[VTbuckeye]

Can anybody give clarity on the tax credit for MY 23 wave 3 vehicles ordering this year and possibily being delivered this year? Prior to the effective date of the new law going into effect. Thank you

If it is delivered to his calendar year, it is this year's rules. If next year, MSRP and income limits apply.

 

[bfisher]

If it is delivered to his calendar year, it is this year's rules. If next year, MSRP and income limits apply.

So if the manufacturer has reached the 200,000 limit then any lightning being delivered this year will not be eligible for any tax credit. Is that right?

 

[Oneand0]

Can he legally change his name to match yours? If my Dad wanted a Silverado EV in a few years he could use my reservation (same first and last name). I get emails from Toyota Everytime their car has an appointment.... I guess you could also get married to someone with low income (unless you are over the 300k limit).

That’s a unique idea if all else fails!

 

[VTbuckeye]

So if the manufacturer has reached the 200,000 limit then any lightning being delivered this year will not be eligible for any tax credit. Is that right?

Tax credit eligibility is 7.5k for the quarter of and subsequent quarter in which they reach the 200k limit. They did not get there in q2, so q3 and q4 are full credit.

 

[VTbuckeye]

That’s a unique idea if all else fails!

I have lots of bad ideas..."I learn from the mistakes of those who follow my advice"

 

[bfisher]

Tax credit eligibility is 7.5k for the quarter of and subsequent quarter in which they reach the 200k limit. They did not get there in q2, so q3 and q4 are full credit.

Thank you for the clarification

 

[PV2EV]

I did a reservation for my father and of course it’s in my name at this point for a 2023 Wave 1 Pro Order. In hindsight I wish I would have used his credit card back on May 19th with his name. I have already taken delivery of my Lariat and I placed his order on Aug 11th.

When it arrives at the dealer in 2023 it will be in the new EV rebate law. I make above the single 150k cap. Question is, when I’m filling out the paperwork for the truck, can I have his name on it too, as a co-owner? He’s literally paying for all of it. But, I know my name has to be on as the buyer since I reserved it. Has anyone done this, and if his name is on original paperwork, then he should be able to apply for the credit.!?

Thanks for any insight.

If he is paying for it his name should be on the contract, and he should claim the tax benefit. If yours is on the contract as well should not matter to the IRS if he is the only one claiming the credit.

I am adding my wife's name, dealer did not care as there is no financing.

 

[cvalue13]

Ford would be the one to just take it though, instead of you the person. If Ford builds 80,000 Lightnings in 2023, they will get $600M in tax credits to reduce their tax liability for 2023. Tesla very similiar will also benefit heavily from this.

The POS rebate, beginning in 2024, reduces the purchase price in the buyer’s purchase contract at the dealer POS.

 

[Oneand0]

If he is paying for it his name should be on the contract, and he should claim the tax benefit. If yours is on the contract as well should not matter to the IRS if he is the only one claiming the credit.

I am adding my wife's name, dealer did not care as there is no financing.

That’s what I was looking for. I guess it will work.

 

[VTbuckeye]

If he is paying for it his name should be on the contract, and he should claim the tax benefit. If yours is on the contract as well should not matter to the IRS if he is the only one claiming the credit.

I am adding my wife's name, dealer did not care as there is no financing.

I can see a dealer not allowing a random stranger (or your best friend) to be added to the reservation/order, but a family member does not seem like a stretch. What if someone got married and has a new name since reserving?

 

[cvalue13]

Ok, 80k in 2024 nets them $600M in non refundable tax credits. You understand how that actually happens right? Ford isnt just going to sell a truck for $7500 less without a benefit on the backend. This is where the tax credit will come into play. Ford can actually take advantage of the full tax credit, where maybe 30% of people can.

Honestly, I’m not sure what you’re saying

if the dealer sells me a $70K vehicle for $7,500 less, then the dealer turns around and gets $7,500 back from the Fed, the dealer has still sold a $70K vehicle for $70K

Perhaps all you’re saying is the separate topic that the dealer was actually going to sell the same vehicle for $62.5K but increases the price $7,500 because of the credit. Still, that’s a separate matter (and also less applicable now given the MSRP/income caps).

 

[ExCivilian]

Question is, when I’m filling out the paperwork for the truck, can I have his name on it too, as a co-owner?

I made a similar mistake when I ordered our lightning but didn't put it in my wife's name. In CA, buyers are only eligible for one CVRP rebate (from the state) and I already submitted for one last year. I called the dealership and was told they wouldn't have any trouble adding her as a co-buyer. The people at the CVRP told me that she *must* be on the purchasing contract, though, she can't just be a registered owner on the title.

 

[cvalue13]

The “Electrification Coalition” put out a sort-of FAQ/infographic on the new bill, which is modestly concise and accurate (for its brevity)

Below posting not only their summary chart because it’s fine, but also because it describes the POS as the “rebate” and elsewhere goes on to describe it this way (in blue underline below). That seems to square with the reading of the bill alone.