Federal EV $7500 Rebate for F-150 Lightning

[JStump24]

Looking promising on the new Biden EV plan. Fingers crossed we end up with a $12,500 credit and basically unlimited number of units for the next few years.

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[astricklin]

I

Looking promising on the new Biden EV plan. Fingers crossed we end up with a $12,500 credit and basically unlimited number of units for the next few years.

I am hopeful the rebate can get changed to a retail credit (down payment) instead of a tax credit as a large number of people probably don't realize they owe less than $7500 in federal taxes. Also you still end up financing and making monthly payments based on the pre-rebate amount with the current system. People say 'the base truck will be $33k'. But you still have to be able to afford the payment on a $40k truck. And there are a lot more people that can afford 33-35 and not 40-45.

 

[shutterbug]

I

I am hopeful the rebate can get changed to a retail credit (down payment) instead of a tax credit as a large number of people probably don't realize they owe less than $7500 in federal taxes. Also you still end up financing and making monthly payments based on the pre-rebate amount with the current system. People say 'the base truck will be $33k'. But you still have to be able to afford the payment on a $40k truck. And there are a lot more people that can afford 33-35 and not 40-45.

Ford Credit will allow you to adjust the payment terms by applying $7,500 credit, once you receive it. This will lower your monthly payments and interest charges.

 

[audiomikej]

The union test shouldn't be allowed. I'm not a lawyer and can't speak to legal challenges but I don't see how Union v. non-union shops has anything to do with EV tax credits. Also this doesn't benefit a potential Lightning buyer like me because I already don't even pay $7,500 in federal income taxes. Since Congress lowered the overall rate and doubled the child tax credit my income tax liability has plummeted. 5 years ago I paid a little over 9k in income taxes, the last couple years it's been less than 2k.

 

[dingle87]

The union test shouldn't be allowed. I'm not a lawyer and can't speak to legal challenges but I don't see how Union v. non-union shops has anything to do with EV tax credits. Also this doesn't benefit a potential Lightning buyer like me because I already don't even pay $7,500 in federal income taxes. Since Congress lowered the overall rate and doubled the child tax credit my income tax liability has plummeted. 5 years ago I paid a little over 9k in income taxes, the last couple years it's been less than 2k.

Right there with you. The credit increase does nothing for a vast majority of the population, from my perspective. If they want these to become more mainstream they should open this up to a retail credit and not a tax credit. I doubt that ever happens, but it'd make the buying decision much easier for buyers with middle class family type income. Either way, I'm buying one, but I know my financial situation isn't like many of my peers either. Very little debt, no car payment currently and no credit card debt. That isn't normal for many Americans.

We'll be a 1 vehicle family (I have access to a work vehicle to drive to/from work), so our situation isn't normal. We're lucky, but I know some that would love to buy one, but their situation doesn't allow for it. If the credit was retail and $12,500, it just might though.

 

[Roy2001]

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

 

[Blainestang]

The text of the current bill changes it to a REFUNDABLE tax credit, so there would be no more issue with whether or not one has enough tax liability anymore.

"The elimination of the per-manufacturer-cap is effective for vehicles sold after May 24, 2021. The portions of the proposal making the EV credit a refundable personal income tax credit along with the VIN requirement are effective for vehicles acquired after December 31, 2021"​

And if Ford will let you basically pay them back the credit when you get it (as shutterbug stated above), then that eliminates both of the main issues.

Sure, you still have to pay sales tax on the full amount, but you're getting a $12,500 discount, so the tax just eats into that a bit, but it's still a huge discount.

 

[F150ROD]

Those buying off the lot will probably see X amount Market Adjustment once those. $12.5K are approved.

 

[JStump24]

The text of the current bill changes it to a REFUNDABLE tax credit, so there would be no more issue with whether or not one has enough tax liability anymore.

"The elimination of the per-manufacturer-cap is effective for vehicles sold after May 24, 2021. The portions of the proposal making the EV credit a refundable personal income tax credit along with the VIN requirement are effective for vehicles acquired after December 31, 2021"​

And if Ford will let you basically pay them back the credit when you get it (as shutterbug stated above), then that eliminates both of the main issues.

Sure, you still have to pay sales tax on the full amount, but you're getting a $12,500 discount, so the tax just eats into that a bit, but it's still a huge discount.

This is good to hear, I didn't even realize it was not like this before.

 

[astricklin]

Those buying off the lot will probably see X amount Market Adjustment once those. $12.5K are approved.

Find a dealer who will sell it without the market adjustment (or contact ford corporate as they have been reprimanding dealers doing this on the mach-e). Then just pay to have it shipped home if it is too far to drive. I would think it's only a couple thousand to ship and would be worth it to me to save 10k

 

[F150ROD]

Find a dealer who will sell it without the market adjustment (or contact ford corporate as they have been reprimanding dealers doing this on the mach-e). Then just pay to have it shipped home if it is too far to drive. I would think it's only a couple thousand to ship and would be worth it to me to save 10k

Thanks, my reservation is already good to go with X-plan and no mark up. I was saying on the actual lot. Dealers can add all weather mats or some crappy alarm system and mark it up $5k. Ford has no control over accessories.

 

[astricklin]

Thanks, my reservation is already good to go with X-plan and no mark up. I was saying on the actual lot. Dealers can add all weather mats or some crappy alarm system and mark it up $5k. Ford has no control over accessories.

I need to verify if my chosen dealer will accept the Costco (which I think is xplan) pricing.

For people buying off the lot vehicles No matter what vehicle, if people stopped buying cars from dealerships that do this sort of thing, then dealers would stop doing it. I personally would never pay over MSRP for a vehicle unless it was an accessory that I requested to be added. I know I am lucky living in the Dallas area and there are countless car dealerships, but the internet really has made car buying a totally different game and you can easily deal with a dealership further away. There's even car buying services out there that will locate and transport the vehicle for you.

 

[Blainestang]

I need to verify if my chosen dealer will accept the Costco (which I think is xplan) pricing.

Hmm, I need to look into this. Will this really work for something like a Lightning that's new and in ultra-high demand?

Also, I agree. As a matter of principle, I would drive a long, long way to avoid paying above MSRP... and there are already dealers saying they will offer $1000 under invoice on Lightnings.

 

[astricklin]

Hmm, I need to look into this. Will this really work for something like a Lightning that's new and in ultra-high demand?

Also, I agree. As a matter of principle, I would drive a long, long way to avoid paying above MSRP... and there are already dealers saying they will offer $1000 under invoice on Lightnings.

It is my understanding that it was available on the mach-e at launch

 

[Don]

I will probably be thrown off of this forum for what I am about to write, so be it! I think this whole idea of giving rebates to those buying EV’s is crap!! It is my tax dollars helping someone buy an EV while over 60 % of the electricity they use is generated by fossil fuel. Giving rebates is NOT a sustainable idea if tax payers help pay for the vehicle. If you want an EV, I think that is just wonderful, but don’t expect me to enjoy that waste of tax payer dollars. Additionally, my gas guzzler will be paying for road use taxes while an EV will avoid most or all of this. I might be wrong, but I don’t think a single tax payer dollar was used to help me pay for my EB. No, tax dollars are NOT free, those tax dollars can be much better spent on building roads and bridges that we ALL use.

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