$7500 tax credit changes come MARCH

[metroshot]

Yeah, the sad reason why I had to opt for a SR.

Nothing sad for me.
Love my daily driver SR Lariat.
Exceeded my expectations and range (260-290 miles) per charge.
Once a week charging only.

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[Monkey]

Then why does Ford's website have a bright red banner that is new and states "get your $7500" by March??! I think new changes COULD take place and start this March

Marketing?

Incorrect

How so? Everything you linked just talks about the $7500 federal credit and says absolutely nothing about the further guidance for materials sourcing or anything about how it will be implemented. In other words, it none of it applies to anything I said. The last CNBC link isn't there... I think I know what it was though, as I'm pretty sure I read it last week. It's probably been pulled because it was bunk and I'm not going to detail it further than that. Decisions don't get made until next month. Maybe. No new guidance will be released until said decisions on the materials sourcing are made. And it could be months before guidance is finalized and ultimately released.

Taking delivery before the March meeting guarantees you absolutely nothing. For all we know, they could push everything off to a later date anyway. Again...

Current proposed requirements would absolutely crush any credits for darling GM and have a huge impact on others. They want to phase this in. They want a definitive start date and escalation to the impact on federal credits. But what if they don't reach a decision in March? Do they try again in April? August? What if they reach a consensus, but don't finalize and release guidance until November?

I know what many are worrying about is the materials sourcing requirements will be put into effect with the first credit reduction beginning April 1 to start the 2nd quarter. And will potentially see increases (reduced credits) each quarter until manufacturers shift their materials acquisition to favorable sources.

I suppose it's always possible they could just bring the hammer down and tell automakers that they have to change to get those tax credits to consumers. Many lawmakers against the EV credits are pushing for this... ie; Manchin. They could also make it retroactive to January 1st. I don't see this happening. I seriously doubt they're going to just drop the hammer and they're not going to yank the rug out from everyone starting March or April. Not when they're trying to incentivize EV sales and auto sales as a whole are slowing along with everything else. This is a treasury meeting, not an IRS meeting to make this decision.. Assuming it's all going to go to hell in a hand basket in March is purely FUD. And no more or less speculative than myself or others saying it's not.

 

[TaxmanHog]

Taking delivery before the March meeting guarantees you absolutely nothing.

This is the crux of my disagreement with your hyperbole, OFTEN new regulations are established mid year with effective dates defined, they won't backtrack and leave folks in the gap [1/1/2023 to date unknown] who have made a critical financial decision based on the status quo.

BTW, you understand that the Treasury is the "organizational parent" of the IRS, many things go up the to treasury level, especially things which cross over and touch other cabinet operations ie. Department of energy, etc......

 

[TaxmanHog]

And no more or less speculative than myself or others saying it's not.

33 years at the IRS and having back room hands on policy making Trumps your FUD

 

[metroshot]

Maybe for a 2023, but it's MSRP less destination, so 2022 Lariat's qualify.

Funny you mentioned that!

I just filed my taxes and for the first time in 20 years, I have gotten a refund!

Every year, I'd wait till April to file, sometimes with an extension to file just because I owe money - more money to the state than federal.

This year thanks to the '22 SR Lariat + EVSE credits:

 

[Traconesu]

8 times since October? Wow, what is the build status today? Man, that's pure torture! Sorry to hear about your build.

I'm not expecting any tax credits as my Lariat ER went well over the 80K price tag. You would think that they would give us SOME of the 7500 because we are buying a clean energy vehicle. Why does it have to be all our none. It's all bullshit political theater.

Even the ones like me won't be getting the entire $7500 off their taxes if they paid less than $7500 in taxes in 2022.
I'll only be getting around $4000. Nobody will get any more back than what they paid in taxes.

 

[brewski]

The updated tax specifics should not affect the $7500, per se. They're going to phase-in the battery materials requirements, they just can't seem to decide how that's to be done. Finalizing this may have an impact to your final credit amount, but I'm guessing it won't make much or any difference for 2023 vehicles. It doesn't matter that it's happening in march, whatever they decide will apply to the entire year -- January to December, won't matter if you get your truck in March or not. I hope you get it soon though... Still waiting on an October order... That's brutal.

You are speaking of battery components …not price or income which drastically changed b

 

[RickLightning]

Even the ones like me won't be getting the entire $7500 off their taxes if they paid less than $7500 in taxes in 2022.
I'll only be getting around $4000. Nobody will get any more back than what they paid in taxes.

It's been explained a few times, let's make sure you understand though.

What you paid in withholding or estimated taxes is IRRELEVANT.

What your tax liability is matters. That's the tax computed off the income you made, with certain adjustments.

Mary could have paid $4,000 in paycheck withholding, but earned enough interest, dividends, and capital gains to have a tax liability of $8,000. Mary can use the entire $7,500 tax credit.

Bob is retired. Bob would have insufficient tax liability to use the tax credit (he pays zero tax). Bob is smart, and did a Roth IRA conversion last year to generate enough income that is taxed to get a tax liability of at least $7,500. Retired people filing jointly could earn up to $83,350 in capital gains in 2022 and pay zero tax.

 

[Sealevel]

I got an advert from Lucid in my email today - it claimed the Lucid Air is eligible for the $ 7500 through MARCH 31. Has the IRS made an official announcement that sales finalized by 3/31/23 qualifies for the full $ 7500?

 

[TaxmanHog]

I got an advert from Lucid in my email today - it claimed the Lucid Air is eligible for the $ 7500 through MARCH 31. Has the IRS made an official announcement that sales finalized by 3/31/23 qualifies for the full $ 7500?

Nothing published here "YET"
https://www.irs.gov/newsroom/news-releases-for-current-month

Or here...
https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after

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