Commercial Leases Qualify for 2023 EV Tax Credits says U.S. Treasury

[Sdctcher]

U.S. Treasury says consumer leases can qualify for EV tax credits

https://www.reuters.com/business/au...leases-can-qualify-ev-tax-credits-2022-12-29/

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[greenne]

Interesting development.

So in theory could we be in a situation where a Lightning with MSRP above $80k would be not be eligible for clean vehicle credit as a purchase, but the same Lightning leased would be eligible for $7500 clean commercial credit?

(The latter would actually mean Ford would claim the credit and could apply towards purchase)

 

[TaxmanHog]

https://www.irs.gov/newsroom/treasu...-cost-for-the-commercial-clean-vehicle-credit

https://www.irs.gov/pub/irs-drop/n-23-09.pdf

Fact sheets & FAQ's

https://www.irs.gov/newsroom/irs-re...reviously-owned-and-commercial-clean-vehicles

https://www.irs.gov/pub/taxpros/fs-2022-42.pdf

 

[Sdctcher]

https://www.irs.gov/newsroom/treasu...-cost-for-the-commercial-clean-vehicle-credit

https://www.irs.gov/pub/irs-drop/n-23-09.pdf

Perhaps the title of this post should be edited to apply only to "Commercial Purchases"?

Confusing?

From:
https://www.investing.com/news/stoc...leases-can-qualify-for-ev-tax-credits-2971117

Treasury said it was using "longstanding tax principles" to determine consumer leasing could qualify for the EV tax credit.

I have added Bold, Italics, Unlined to above quote.

Does this news mean BOTH Commercial and Consumer sales?

 

[greenne]

Perhaps the title of this post should be edited to apply only to "Commercial Purchases"?

But if you read the guidance... I believe that applies to the purchaser. In the case of a lease, the purchaser(Ford, GM, Kia, etc) that offers the vehicle for lease IS the commercial entity..not the actual leasee of the vehicle. (When you lease isn't the mfr the actual "owner" of the vehicle?)

Q5. Is a taxpayer that leases clean vehicles to customers as its business eligible to claim the qualified commercial clean vehicle credit? (added December 29, 2022)
A5. Whether a taxpayer can claim the qualified commercial clean vehicle credit in its business depends on who is the owner of the vehicle for federal income tax purposes. The owner of the vehicle is determined based on whether the lease is respected as a lease or recharacterized as a sale for federal income tax purposes.

 

[greenne]

" The announcement is a win for South Korea and some automakers that earlier this month sought approval to use the commercial electric vehicle tax credit to boost consumer EV access. Automakers said the credit could be used to reduce leasing prices."

https://www.reuters.com/business/au...leases-can-qualify-ev-tax-credits-2022-12-29/

 

[Sdctcher]

" The announcement is a win for South Korea and some automakers that earlier this month sought approval to use the commercial electric vehicle tax credit to boost consumer EV access. Automakers said the credit could be used to reduce leasing prices."

https://www.reuters.com/business/au...leases-can-qualify-ev-tax-credits-2022-12-29/

So in the case of the 2023 Lightning, one would hope that @Ford would use this loophole to either make the monthly lease payment or the residual more favorable.

https://www.carsdirect.com/deals-articles/2023-ford-lightning-lease-costs-1-000-month

2023 Ford Lightning Lease Costs $1,000/month

 

[Driver8]

So in the case of the 2023 Lightning, one would hope that @Ford would use this loophole to either make the monthly lease payment or the residual more favorable.

One could hope, but I don't think Ford has a history of doing so.

https://www.carsdirect.com/deals-articles/2022-ford-mach-e-lease-prices-still-lack-ev-tax-credit

 

[greenne]

One could hope, but I don't think Ford has a history of doing so.

https://www.carsdirect.com/deals-articles/2022-ford-mach-e-lease-prices-still-lack-ev-tax-credit

Hyundai and Kia are the ones who are going to jump all over this. Great news since I'm leaning towards either Tucson or Sportage PHEV to replace my wife's aging Ford Escape. I have a reservation for a Blazer EV, but just not comfortable with her having to depend on DCFC by herself. Its still a crapshow out there with regards to public charging.

 

[brewski]

Get government involved...and create the problem.
This thing is such a mess.

Of course, that is the tax code, if it were simple, we'd understand it.

 

[TaxmanHog]

Perhaps the title of this post should be edited to apply only to "Commercial Purchases"?

Confusing?

From:
https://www.investing.com/news/stoc...leases-can-qualify-for-ev-tax-credits-2971117

Treasury said it was using "longstanding tax principles" to determine consumer leasing could qualify for the EV tax credit.

I have added Bold, Italics, Unlined to above quote.

Does this news mean BOTH Commercial and Consumer sales?

Another tread is focused on personal consumer type situations, it is a good idea to separate these conversations, OP can you edit the thread title? if not I can, suggest an appropriate title you would like to use in lieu of the current one. Note COMMERCIAL is important to the topic.

 

[TaxmanHog]

Of course, that is the tax code, if it were simple, we'd understand it.

Surely you jest !!!

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