2023 Tax Credit options for F150 Lightning above $80K MSRP

[ChrisC]

Help! I am so confused about what my tax credit options are thanks to the price increase by @Ford Motor Company in every F150 Lightning trim and the removal of the $7,500 EV tax credits by the IRA. Farley mentioned that the $7,500 would still be available for commercial vehicles under the Commercial Clean Vehicle Credit in the IRA but there is a MSRP limit of $80,000. I have ordered my vehicle and the Lariat trim was the lowest price trim available but I added the ER battery so the MSRP will be $87K and above the limit. I am hoping the IRS updates this restriction by next year but am looking for other options. One that I found that makes no sense to me is the incremental cost section. The EV F150 Lightning will cost more than the ICE F150, so is this an option or does it not apply because the truck is more than $80K? I am seriously regretting adding the ER battery if it makes me ineligible for any tax rebates

https://www.irs.gov/pub/irs-drop/n-23-09.pdf
https://www.irs.gov/pub/taxpros/fs-2023-04.pdf

Sponsored

 

[astricklin]

Talk to a tax professional.

 

[TheBigBezo]

As much as I wish we could get the credit, I see almost no way the IRS changes their rules nor do I see any future where the current congress expands EV credits. It is what it is.

 

[Zprime29]

I just bought a 2022 mannequin from out of state so that I could still get the credit. There are more out there. Anderson Ford in Kingman, AZ has a white Lariat with ER, max tow, and MRSP (minus D&D) is under $80k. They went down to $2500 over for me. The purchase price does not affect eligibility for the credit. I ended up going with a red one elsewhere. They also verified that it has not been titled yet, so to the best of my knowledge it is still good to go. Going out of state has been a bit of extra hassle but I'm still saving a lot of $$$ and getting all the features. I'm very happy others here recommended I go this route.

 

[ChrisC]

As much as I wish we could get the credit, I see almost no way the IRS changes their rules nor do I see any future where the current congress expands EV credits. It is what it is.

It would be nice if @Ford Motor Company reduced the price like Tesla did for the 2023 and 2024 model years to what they originally said until they can be compliant with the IRA.

 

[metroshot]

Help! I am so confused about what my tax credit options are thanks to the price increase by @Ford Motor Company in every F150 Lightning trim and the removal of the $7,500 EV tax credits by the IRA. Farley mentioned that the $7,500 would still be available for commercial vehicles under the Commercial Clean Vehicle Credit in the IRA but there is a MSRP limit of $80,000. I have ordered my vehicle and the Lariat trim was the lowest price trim available but I added the ER battery so the MSRP will be $87K and above the limit. I am hoping the IRS updates this restriction by next year but am looking for other options. One that I found that makes no sense to me is the incremental cost section. The EV F150 Lightning will cost more than the ICE F150, so is this an option or does it not apply because the truck is more than $80K? I am seriously regretting adding the ER battery if it makes me ineligible for any tax rebates

https://www.irs.gov/pub/irs-drop/n-23-09.pdf
https://www.irs.gov/pub/taxpros/fs-2023-04.pdf

What Farley mentioned is the IRS 45W (leasing) thru commercial business/banks.
Under this rule, you can LEASE and those banks that participate in the lease credit return, you can exceed the $80K MSRP, have no income restrictions, and not be made in North America.

It's a very big loophole created by foreign EV makers (Kia, Hyundai, BMW, Mercedes, VAG) to bypass IRS 30D ( individual restrictions: MSRP cap, income cap, NA build).

On your ER Lightning, you can try to find a 3rd party lease company (because Ford's RCL does not credit the $7500), thus you can lease from the 3rd party leasor and get a cap cost reduction your lease.

3rd party lease companies like Ally or US Bank comes to mind.
Unfortunately, the Ford dealer will let you know if you can lease thru a 3rd party.

Some other brands are already leveraging IRS 45W by reducing the cost of the EV lease contract by up to $7500 (Mercedes, BMW, Audi, VW, Polestar2, Chrysler).

 

[Pitbull2o08]

Can you not form your own LLC and take the credit, in addition to max depreciating it 25k in one year since it’s over 6k pounds?

 

[ChrisC]

What Farley mentioned is the IRS 45W (leasing) thru commercial business/banks.
Under this rule, you can LEASE and those banks that participate in the lease credit return, you can exceed the $80K MSRP, have no income restrictions, and not be made in North America.

It's a very big loophole created by foreign EV makers (Kia, Hyundai, BMW, Mercedes, VAG) to bypass IRS 30D ( individual restrictions: MSRP cap, income cap, NA build).

On your ER Lightning, you can try to find a 3rd party lease company (because Ford's RCL does not credit the $7500), thus you can lease from the 3rd party leasor and get a cap cost reduction your lease.

3rd party lease companies like Ally or US Bank comes to mind.
Unfortunately, the Ford dealer will let you know if you can lease thru a 3rd party.

Some other brands are already leveraging IRS 45W by reducing the cost of the EV lease contract by up to $7500 (Mercedes, BMW, Audi, VW, Polestar2, Chrysler).

Thank you so much! This is what I was confused about. I plan to lease via my credit union on a green new car loan but will look into this 3rd party lease option

 

[ChrisC]

Can you not form your own LLC and take the credit, in addition to max depreciating it 25k in one year since it’s over 6k pounds?

I was looking into this for normal commercial vehicles using tax code 179 but wondered about the ones meant for EVs. It seems there must be something since I am putting a clean commercial vehicle into production instead of an ICE truck

 

[metroshot]

Can you not form your own LLC and take the credit, in addition to max depreciating it 25k in one year since it’s over 6k pounds?

Ha!
This is what I was planning on doing since the Lightning meets the "heavy weight GVWR" vehicle deduction for businesses.

I think its $26K in 2022....

Less this year....

 

[metroshot]

I was looking into this for normal commercial vehicles using tax code 179 but wondered about the ones meant for EVs. It seems there must be something since I am putting a clean commercial vehicle into production instead of an ICE truck

Yes if you have a business, then leverage Section 179 under the IRS "Heavy vehicle GVWR" section 179.

Don't know the one time lump amount this year, but last year it was $26K.

Glad the Lightning's GVWR is 8500 lbs!

 

[Pitbull2o08]

I was going to do that but I didn't put it in my side hustle's name, plus i'll be using it 99% of the time for W2 work so I don't want to risk it.

 

[metroshot]

I was going to do that but I didn't put it in my side hustle's name, plus i'll be using it 99% of the time for W2 work so I don't want to risk it.

Yah, same here - I have small business that can take advantage of Section 179 but my accountant asked how much I drive it for the business.

When I told him about 50%, he said just take the $7500 tax credit from the '22 and don't get audited...

 

[MurphysLaww]

isn't there a max income level for the credit as well ? We took delivery mid jan, so as far as I know we're under 2023 rules, which I think means a 2023 lariat wouldn't qualify anyway.

 

[cvalue13]

Can you not form your own LLC and take the credit, in addition to max depreciating it 25k in one year since it’s over 6k pounds?

I mean, if you’re prepared to prove up that the LLC is a legitimate business, the lightning is purchased by and originally titled in the name of the business, and the lightning is used more than 50% of the time for business (with ‘receipts’/proof of business mileage usage) - and even then any fraction above that 50% would be the max fraction of the deduction you’d be allowed.

at that point, the individual tax rebates for BEVs are not the relevant rebates

Sponsored