2024 Mach-E to Lose EV Tax Credit. Any News on Lightning?

[Maquis]

Could you share what you're reading, I don't doubt your take or that reporting just would like to see it myself, I could google, but that doesn't guarantee I'd get the results you trust.

.

So here’s a clarification.
The standard range Mach-E now uses LFP batteries produced in China by CATL. This is supposed to also happen for standard range Lightnings at some point.

Starting in 2024, vehicles with batteries sourced from a “foreign entity of concern” are no longer eligible for tax credits. Starting in 2025, the restriction widens to include battery components.

Extended range vehicles should not be affected. South Korean/US made batteries.

So while nothing explicitly states Fords will lose the credit in 2024, it’s pretty clear that any EV that has a China-manufactured battery will lose eligibility. Maybe this explains the delay in switching the SR Lightning over to LFP?

But, our bureaucrats could alter the rules either way at any time.

Tesla’s LFP batteries are also made in China by CATL.

https://techcrunch.com/2023/07/12/tesla-says-model-3-model-y-tax-credits-likely-to-be-reduced-by-2024/?

https://www.insideenergyandenvironm...r-section-30d-of-the-inflation-reduction-act/

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[AI_Speed]

Yep.... Also don't trust the tax rebates until you file and your returns are processed. Even then...

I'm dealing with the state of CO right now on my state incentive for my Lightning. They denied it, and charged me back for it. Because they determined it was previously titled in another state. Well, the deal is, I bought it in Iowa. Purchasing an EV out of state does not disqualify it from the rebate, it just must be titled in CO. Iowa requires new vehicle purchases to be titled and the dealership issued me a temporary Transit Title, good for 7 days. I literally flew to DesMoines, bought the truck and drove it back to Denver. Where I had to get a VIN verification and take all the paperwork to the DMV and title/ register the truck and get plates all within the first 7 days of owning the truck due to my transit title and temp tag expiring.

I've talked with two agents at the state Dept. of Revenue and they agree I shouldn't be denied the credit, but this has to go through a review process. And one of those agents who was sympathetic to me said I will most likely still be denied. Just because a title is a title, even if only a temporary measure so I could legally drive the truck. The only legal way for me to have taken the truck out of Iowa without getting said title would be to have a licensed CO dealership trade or make other arrangements for it, since that wouldn't be a sale.

oops.. Didn't mean to hijack the thread. That's just how my week is going. Getting a denial letter and a bill from the state for $3800.

BBB may be able to aid you for free.

Yes, that was my point. I read your original post as saying that the Federal credit didn't apply or only half applied because it was made in Mexico. So I was correcting you. Maybe I read your original post wrong?

I bought a '22 MME (sold at retail) & a '23 Lightning so got $15k as tax credit last year - going forward I've seen the Lightning is $7500 off but am unsure about other specific brands/models until I see a link to a '24 listing.

 

[KevinC]

Long Mcarthur mentioned in passing a few weeks ago that he believes the lightning has the credit in 24, but it didnt sound like he was emphatic about it... it seemed more like he was "pretty sure". I've heard it's possible they may play games with averaging it out to the IRS with the Nickel and Iron in the transition for SR to LFP, but that is pretty fuzzy.

If Ford can't figure out something for the LFP then it's going to be a price increase on the cheapest trim which goes against logic for a material that was supposed to decrease the price. Sk may throw them a hail mary and open up LFP production early, but I wouldn't count on it. They're gonna bring LFP to the lightning the same way they delivered android automotive. It's not like they have to free up the nickel batteries for the out-of-control demand on the Lariats.

" SK Innovation [096770:KS], plans to produce a new lithium-iron-phosphate (LFP) electric vehicle (EV) battery by 2025, with the aim of delivering lower-cost batteries"
https://senecaesg.com/insights/sk-innovation-unveils-plans-for-advanced-lfp-ev-batteries/

 

[Monkey]

BBB may be able to aid you for free.

Heh. Not sure what the BBB could do here... They're just Yelp for Boomers. Saw that somewhere recently and it's the most apt description of the BBB I've ever seen. They're just a ratings organization and that's it. Besides, this isn't a business issue, it's a dispute over my state tax return with the state department of revenue. The issue is under review now... I've given them copies of all the paperwork, transit title, etc.. Hoping they'll reinstate my credit, but the wording in the requirements specifically states that it must be originally titled here. I'm challenging their decision on the grounds that the Iowa transit title was in fact not a permanent title, but a temporary instrument, and only a means to legally purchase and move the vehicle. I would have been require to register and title the vehicle permanently in Iowa had I kept it there. It's equivalent to the temporary registration slip you get when you buy a vehicle that serves until the vehicle is properly registered.

 

[AI_Speed]

Heh. Not sure what the BBB could do here... They're just Yelp for Boomers. Saw that somewhere recently and it's the most apt description of the BBB I've ever seen. They're just a ratings organization and that's it. Besides, this isn't a business issue, it's a dispute over my state tax return with the state department of revenue. The issue is under review now... I've given them copies of all the paperwork, transit title, etc.. Hoping they'll reinstate my credit, but the wording in the requirements specifically states that it must be originally titled here. I'm challenging their decision on the grounds that the Iowa transit title was in fact not a permanent title, but a temporary instrument, and only a means to legally purchase and move the vehicle. I would have been require to register and title the vehicle permanently in Iowa had I kept it there. It's equivalent to the temporary registration slip you get when you buy a vehicle that serves until the vehicle is properly registered.

No - on this forum & others vehicle owners have used BBB to make the dealership/Ford corporate take back their lemon vehicles - so they are effective for results-oriented pursuits.

 

[RickLightning]

.

So here’s a clarification.
The standard range Mach-E now uses LFP batteries produced in China by CATL. This is supposed to also happen for standard range Lightnings at some point.

Starting in 2024, vehicles with batteries sourced from a “foreign entity of concern” are no longer eligible for tax credits. Starting in 2025, the restriction widens to include battery components.

Extended range vehicles should not be affected. South Korean/US made batteries.

So while nothing explicitly states Fords will lose the credit in 2024, it’s pretty clear that any EV that has a China-manufactured battery will lose eligibility. Maybe this explains the delay in switching the SR Lightning over to LFP?

But, our bureaucrats could alter the rules either way at any time.

Tesla’s LFP batteries are also made in China by CATL.

https://techcrunch.com/2023/07/12/tesla-says-model-3-model-y-tax-credits-likely-to-be-reduced-by-2024/?

https://www.insideenergyandenvironm...r-section-30d-of-the-inflation-reduction-act/

The rule for 2024 is 50% US mineral content extracted or processed vs. 40% in 2023. And for components, it goes up from 50 to 60%. That's why Ford has to figure it out, because we're not privy to the info.

And, in 2024, no battery components can be manufactured by "a foreign entity of concern".

https://home.treasury.gov/news/press-releases/jy1379

Right.

And the exact specifics of the rules may get tweaked, and Ford doesn't give us all the battery particulars, so that's why they supply what's needed to feds, and feds give thumbs up or down.

I know there is some scurrying around trying to get trade agreements with some countries counting, but no idea where that is at. In other words, if country XYZ makes it, that's ok. If DEF makes it, that's not.

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