EV Tax credit question

[Ccarm6]

So I’ve read up a good bit on the EV tax credit changes for 2023, and understand that I will be ineligible for tax credit at that point due to salary as well as Lariat 511a being over $80K limit, but my question is what are the current rules on the EV credit for the rest of 2022? Is there no purchase cap as well as salary limit until January 1? And if that is the case, at what point do I need to get in the purchase process to be eligible for the EV credit for the 2022 year? Do I need a written purchase agreement before Jan 1? Or what if I had only paid the deposit and had a written agreement but the sale didn’t go through till after Jan 1? Thanks in advance.

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[Ccarm6]

@TaxmanHog I wonder if you have any light to shed on this topic

 

[Lime Green]

It won’t be easy claiming the ‘22 credit. There is a roll-over clause, but the IRS has amended it somewhat and they’re clamping down on automakers in regards signing people up with bigger deposits and non-refundable terms to game the system for the credit.

where are you in terms of production and delivery? Do you have a scheduled build date? If your truck gets built this calendar year, you’d have a great case for the roll-over even if you don’t take delivery until next year? Although I think all current scheduled builds should still deliver this year anyway.
As I understand the current situation is that you’ll need a specific VIN to which you can tie the contract and deposit. They’re not going to roll you over for a vehicle that won’t even be built until next year. I’ve had Rivian warn me that may still happen to me even though I signed up for the bigger deposit and roll-over deal they tried to offer. But it doesn’t help they’ve offered me a truck a couple times now and I’m eligible to buy from the R1 Shop, but I’m holding out for the max pack I ordered long ago…

 

[Ccarm6]

No I do not, I am in discussions with a dealership to buy their demo. Trying to decide if the markup is worth the possible EV credit plus the lower MSRP on MY22 vs MY23 or MY24.

 

[hturnerfamily]

I'm not aware that anything about the 2022 EV Tax Credit has changed...no income cap, no pricing cap, and Ford has not built enough EVs to reach anywhere close to any 'cap' on number of builds affecting anything prior to Jan 1. IF you have $7,500 in OWED taxes for 2022, then you should receive a tax credit, by the current EV tax credit standings. The only thing that folks have gotten tripped up on is the confusion of having a 'written purchase agreement', but that is only for those who have already ORDERED, but might not receive a vehicle until AFTER Jan 1. That just preserves their right to claim the tax credit, even though they would then be claiming it on their 2023 taxes, in 2024... a big delay in time, but the EV Tax Credit, none-the-less.

That's my take.

 

[lancersrock]

No I do not, I am in discussions with a dealership to buy their demo. Trying to decide if the markup is worth the possible EV credit plus the lower MSRP on MY22 vs MY23 or MY24.

If you buy the Demo by december 31st you will be eligible for the current credit. we also dont know 100% that the ER wont qualify as they could use base msrp which ford classifies as the SR version with the ER being a option.

 

[Ccarm6]

So the consensus is that I should receive a tax credit if I buy a dealer’s demo within the next few months regardless of the price of the car, my income, or whether or not I purchase and own the vehicle before the new year? Thank y’all for all your input.

 

[BigNerd]

Yes... purchase in 2022 and as long as NorthAm final assembly (as of Aug 16), all other requirements remain the same until end of 2022.

 

[Arrington.LCA]

The only required for the remainder of 2022 is that an EV have final assembly in North America, and didn't previously have manufacturer exceed 200k units (and complete phase our period). Any Lightning purchased in 2022 is eligible.

 

[hturnerfamily]

the whole and only reason any of this EV Tax Credit change confusion is happening is because we have moved from a 'buy a vehicle now, today, from a dealer's lot', to a 'reserve, eventually order, and then WAIT for the truck to be delivered, maybe in the far future' way of buying many vehicles.
The commodity restraints and lack of employees is also adding to the 'wait'...

This puts the onus on US to manage the EV Tax Credit 'timing', versus the old school way of claiming it at the moment of the sale. Most of us are NOT tax professionals, and have little time and effort to 'crack' the tax code, especially when there are so many variables - especially in this 'latest' EV Tax Credit version. Even the dealers and their salespeople are not tax professionals, and have very little capability to 'help' customers maneuver thru the fray.

Of course, after Dec 31st, none of this current chatter will matter.

 

[Roy2001]

No I do not, I am in discussions with a dealership to buy their demo. Trying to decide if the markup is worth the possible EV credit plus the lower MSRP on MY22 vs MY23 or MY24.

As long as you take delivery this year and VIN has not been registered, you can claim tax credit.

 

[Ccarm6]

But that’s what I’ve been trying to clarify, I am not taking delivery of an order, I am trying to buy a dealer demo and don’t know if I need to have possession/ownership of the vehicle before the new year to qualify for the EV credit.

 

[TaxmanHog]

I am trying to buy a dealer demo

If the 6 month holding period has expired and the dealer is rightfully able to sell to you as a new vehicle with you being it's first owner and ownership/possession is with you and all this happens by 12/31/2022, then you're good to claim the credit.

 

[jimfigler]

If the 6 month holding period has expired and the dealer is rightfully able to sell to you as a new vehicle with you being it's first owner and ownership/possession is with you and all this happens by 12/31/2022, then you're good to claim the credit.

Exactly.

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