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

[metroshot]

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.

Yes, under IRS 30D (individual or small business) claiming the tax credit in 2023 has an MSRP cap of $80K and income caps.

Under IRS 45W (commercial leasing) the leasing company can kick back or credit the tax credit back to the leasee (customer) by reducing net cap cost (price reduction) on the lease.

The loophole of 45W is that the EV does not need to be made in North America, no income caps, and no MSRP cap.

While other brands are leasing their EVs with a tax credit reduction resulting in adjusted cap cost (BMW, Mercedes, Volvo, Polestar, Audi, VW, Nissan, etc) - Ford's Red Carpet Lease (RCL) does not offer any credit back to the contract (Ford keeps it) which really sucks!

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[metroshot]

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

That was my conundrum as well - my established small business can use IRS section 179 but my accountant asked about the amount of business versus W2 that I also get and it was close to 50-50.

Just like @Pitbull2o08 I am in the same situation and claiming $13K is risky for an audit using Section 179.

My accountant said to be safe and just claim the $7500 using IRS 8936 which I am doing this month for my $7500+ $1600 EVSE installation credits.

 

[TaxmanHog]

The IRS DOES NOT make law, that is the purview of Congress.

Talk to your politicians if you think the threshold needs an adjustment, start with the esteemed senator hailing from West by god Virginia.

 

[astricklin]

As to the LLC route. Said business entity will also have to have at least$7500 tax liability to receive the full credit amount.

 

[astricklin]

We know Ford is not passing through the incentive in their lease. Has anyone found a leasing company that is doing a cap cost reduction?

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