Federal EV $7500 Rebate for F-150 Lightning

[astricklin]

No difference really, other than how soon you put the rebate in your pocket. Unused rebate $ carries over if you don't use it in your first tax year. The current Biden infrastructure bills change it to a rebate.

If they really want people to buy EVs this needs to be a retail credit so I can qualify for a loan and my initial payment is based on the lower amount. If it ends up being over $10k in rebates. A lot of people will not be able to finance a $40k vehicle over a $30k vehicle. That's around $200 difference in monthly payment. That's significant. Also yes, ford will make adjustments once you get the tax credit/rebate/whatever, but if I buy at the beginning of the year then I may have 10-12 months or more at a higher payment. Also if I have to span that rebate across multiple tax years then how many times is ford going to let me adjust my loan without making me actually refinance?

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[Blainestang]

If they really want people to buy EVs this needs to be a retail credit so I can qualify for a loan and my initial payment is based on the lower amount. If it ends up being over $10k in rebates. A lot of people will not be able to finance a $40k vehicle over a $30k vehicle. That's around $200 difference in monthly payment. That's significant. Also yes, ford will make adjustments once you get the tax credit/rebate/whatever, but if I buy at the beginning of the year then I may have 10-12 months or more at a higher payment. Also if I have to span that rebate across multiple tax years then how many times is ford going to let me adjust my loan without making me actually refinance?

Someone said Ford will set it up so you pay as if you've already given them the credit from the beginning, and you just give them the credit when you get it.

That's how my solar loan worked: We *should* have been paying $300/mo because we hadn't paid them the credit yet, but they set it up that we paid $200/mo and we just gave them the credit when we got it.

The credits will not span across multiple tax years, either, FWIW. The current one cannot be spread out. If you can take the whole thing, you take it the first year. If you can't, it's gone. With the newly proposed one, it's a "refundable" credit and you get the whole amount even if it's larger than your tax liability. No need to spread it out.

 

[GreggT]

No difference really, other than how soon you put the rebate in your pocket. Unused rebate $ carries over if you don't use it in your first tax year. The current Biden infrastructure bills change it to a rebate.

Big difference, rebate is actual cash off, tax credit mainly helps upper middle class and wealthy who pay more than that in taxes every year.

 

[EaglesPDX]

If they really want people to buy EVs this needs to be a retail credit so I can qualify for a loan and my initial payment is based on the lower amount. If it ends up being over $10k in rebates. A lot of people will not be able to finance a $40k vehicle over a $30k vehicle.

If the $7500 needs to be a down payment you can always borrow it and can get a 0% credit card charge which you pay off with the rebate when you do your taxes

 

[shikataganai]

Charge Point charger rebate

It's a 30% tax credit on EVSE, maxing out at $1,000. But to get that one would have to have spent $3,333.33 on that EVSE, which is quite ridiculous and still leaves $2,333.33 out of your pocket.

Does anyone know if there is a small incentive for the Powerboost hybrid? Lol it’s kind of electric... I guess.

No tax credits for non-plugin hybrids. Never have been, although some states offered HOV stickers for them early on.

a large number of people probably don't realize they owe less than $7500 in federal taxes

Those people shouldn't be buying new cars and for the most part aren't by the demographics.

 

[astricklin]

Those people shouldn't be buying new cars and for the most part aren't by the demographics.

My actual amount of tax owed is about $3000 and I have purchased 3 brand new cars so far in my lifetime. Two of them I still own and they are 13 and 6 years old. Before covid, I spent about $250 a month on fuel between my commute and running errands. We will see where I am at in the coming months but I should be able to afford a payment around $200 higher than my last vehicle payment which should put a pro within my reach if I can apply the full $7500 as a down payment.

 

[GreggT]

"a large number of people probably don't realize they owe less than $7500 in federal taxes"

Those people shouldn't be buying new cars and for the most part aren't by the demographics.

Certainly glad we have a "Tax Expert" on the forum.
Since 1992 only one year have we Paid more than $7,500.00 in Federal Income Taxes, last year in was less than 1K.
Guess you feel Jeff Bezos can't afford a new car, Donald Trump, most farmers, people with large land holdings, many small business....And I could go on. Most folks I mentioned including myself would pay cash but still would like that incentive if we were to buy an EV.

 

[Texas Dan]

He is saying that Ford has already sold over 125K EV's since the inception of the credits. They only have 75K credits left until they hit the 200K cap. What those EV's were I have no clue (Fusion, Focus and MachE???) The cap is not a hard cap but tapers out (lower amount of credit) over several quarters. More than likely only the first year or so deliveries will get the credit. And yes, the Mach E is selling in the US.

Before the Mach-e went on the market Ford had already sold over 100,000 plug -ins and only about 6,000 of those were the Focus Electric (I bought two of those). The vast majority of plug-in sales before the Mach-e were for the Fusion Energi (I bought one of those). Other models that contributed to the plug-in sales count were the C-Max Energi and the Transit Electric.

 

[Texas Dan]

A lot of things would change before next year. $7500 could be deducted directly when you buy it.

You can always lease and get the credit up front, I have done that twice already.

 

[shikataganai]

Certainly glad we have a "Tax Expert" on the forum.
Since 1992 only one year have we Paid more than $7,500.00 in Federal Income Taxes, last year in was less than 1K.
Guess you feel Jeff Bezos can't afford a new car, Donald Trump, most farmers, people with large land holdings, many small business....And I could go on. Most folks I mentioned including myself would pay cash but still would like that incentive if we were to buy an EV.

You (and certainly those tax-dodging billionaires) are oddities then.

F-150 buyer demographics:

Average age 55, 84% male.
Average family income $82k per year. So even after the standard deduction, 401(k) contributions, etc. most average buyers will be well above $7,500 overall Federal tax liability.

 

[Brian Head Yankee]

Yep, people seem to be confusing taxes paid in April to the total tax liability. It is hard to imagine anyone who working and has less than $7500 taken out of their paycheck in taxes throughout the year that is buying a Lightning. I think people who are retired and paying cash would be stuck without the upcoming change in the credit working thru Congress.

 

[shutterbug]

I think people who are retired and paying cash would be stuck without the upcoming change in the credit working thru Congress.

Many of those retired people could use this as an opportunity to convert regular IRA to Roth.

 

[GreggT]

You (and certainly those tax-dodging billionaires) are oddities then.

I've paid every dollar I have owed, no "Tax Dodging Here"!!
Nothing wrong with taking advantage of our crazy overly complicated tax system.
By the way we are retired along with a growing 17% of the population. Not exactly an oddity!

 

[Silenze]

You (and certainly those tax-dodging billionaires) are oddities then.

F-150 buyer demographics:

Average age 55, 84% male.
Average family income $82k per year. So even after the standard deduction, 401(k) contributions, etc. most average buyers will be well above $7,500 overall Federal tax liability.

Your math only works for single filers. Im married with 2 kids and my tax liability is around 3k

 

[vegas2k]

Your math only works for single filers. Im married with 2 kids and my tax liability is around 3k

looking at least year's taxes, we did get a refund because we overpaid. However, our total tax was way over this tax credit. I imagine that means if things are the same next year's tax season, we should get all of it back to the tune of the 7500/12500, whichever it ends up being? I did ask my tax person as well, waiting for a response from that person.

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