Ford EV Tax Credits May Run Out Sooner Than Expected

[Zprime29]

I thought MSRP means just that - however it's equipped - what the window sticker shows w/ $1795 destination & delivery charge....

AZ charges a vehicle license tax based on the base MSRP of the vehicle which is before options according to my dealer. I've never paid that close attention before as the options on vehicles I've bought didn't add a significant amount. I'm praying that the IRS goes this route as well. I'm right on the border of being able to swing an ER and that credit would go a long way for me.

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[lancersrock]

AZ charges a vehicle license tax based on the base MSRP of the vehicle which is before options according to my dealer. I've never paid that close attention before as the options on vehicles I've bought didn't add a significant amount. I'm praying that the IRS goes this route as well. I'm right on the border of being able to swing an ER and that credit would go a long way for me.

Iowa is the same. I "should" take delivery By the end of this year but being a refundable credit would be better as I'm also having solar installed and my tax liability hovers around $8k a year (kids are quite the tax relief)

 

[ExCivilian]

The big question that we need answered is if the MSRP is based on the trim with no options and that the ER battery is considered an optional addon. In which case XLT and Lariat would both still qualify next year.

That's how the states do it and how the IRS has handled similar type issues before.

It's also one of the reasons the platinum is barred from any of those programs since it doesn't have any of those big ticket items as "options."

Iowa is the same. I "should" take delivery By the end of this year but being a refundable credit would be better as I'm also having solar installed and my tax liability hovers around $8k a year (kids are quite the tax relief)

The solar credit rolls over to the next year if you can't avail yourself of the full amount.

 

[EdwinT]

I thought MSRP means just that - however it's equipped - what the window sticker shows w/ $1795 destination & delivery charge....

I haven't seen a breakdown for the federal credit, but the NJ credit specifically states that things like removeable cargo nets, covers, matts, and things like ceramic coatings do not apply. If the federal credit takes the same approach (no idea if it does), I would say that options like the battery WOULD certainly count. I took the conservative approach and assumed all counted for the federal credit.

 

[metroshot]

I haven't seen a breakdown for the federal credit, but the NJ credit specifically states that things like removeable cargo nets, covers, matts, and things like ceramic coatings do not apply. If the federal credit takes the same approach (no idea if it does), I would say that options like the battery WOULD certainly count. I took the conservative approach and assumed all counted for the federal credit.

California's EV rebate is based on the base model (Pro) price which qualifies, but I got the Lariat which was $30K over the Pro, but I still qualified for the state rebate check.

At least we have a full year (2023) to wait for the IRS ruling.

While my 2022 Lightning is good to go for the full $7500; my MME order is coming in early 2023.

Have to see what happens after they interpret the law for the MME.....

 

[TaxmanHog]

Minor updates to H.R.9289 AND S.5020

Changes to the Summary of the bill's

Affordable Electric Vehicles for America Act of 2022

This bill extends until after 2025 the requirement that final assembly of vehicles occur within North America for purposes of the clean vehicle tax credit.

Detailed text of each bill:

https://www.congress.gov/bill/117th-congress/house-bill/9289/text

https://www.congress.gov/bill/117th-congress/senate-bill/5020/text

 

[EdwinT]

Minor updates to H.R.9289 AND S.5020

Changes to the Summary of the bill's



Detailed text of each bill:

https://www.congress.gov/bill/117th-congress/house-bill/9289/text

https://www.congress.gov/bill/117th-congress/senate-bill/5020/text

Do we have an idea of when this will be passed/nixed?

This would be HUGE!! If I am reading this correctly, it appears that the final assembly, battery minerals, and battery components will be pushed back to vehicles purchased in 2026 (i.e. add 3 years to all the requirements).

This would mean that the Chevy bolt would qualify again. As well as many other cars. Better hurry and get some quotes from dealers lol.

 

[Pioneer74]

Do we have an idea of when this will be passed/nixed?

This would be HUGE!! If I am reading this correctly, it appears that the final assembly, battery minerals, and battery components will be pushed back to vehicles purchased in 2026 (i.e. add 3 years to all the requirements).

This would mean that the Chevy bolt would qualify again. As well as many other cars. Better hurry and get some quotes from dealers lol.

It would have to be passed by the end of this month. Congress has the Defense budget bill they are working on this week and the 2023 fiscal spending bill has to be done by the 16th, unless they can't get a deal and they pass a CR. If it's not in that, it won't happen.

 

[TaxmanHog]

0.00015%

 

[EdwinT]

0.00015%

.00015% Is the chance they make any decisions or the chance they say yes (meaning highly likely they say no)?

Side note...not saying I agree or disagree with any of these EV credit laws, BUT given the situation, I do feel they should do some type of easing in to the 3 main criteria that forced tons of companies out. Postponing to me is not the full answer. The companies should have to show proof or planning say year 1, then proof of actually doing those plans year 2, etc. Working towards meeting the qualifications should be the criteria is what I mean.

 

[TaxmanHog]

.00015% Is the chance they make any decisions or the chance they say yes (meaning highly likely they say no)?

Side note...not saying I agree or disagree with any of these EV credit laws, BUT given the situation, I do feel they should do some type of easing in to the 3 main criteria that forced tons of companies out. Postponing to me is not the full answer. The companies should have to show proof or planning say year 1, then proof of actually doing those plans year 2, etc. Working towards meeting the qualifications should be the criteria is what I mean.

These bills are in committee, as others said, unless they use it as trap bate for votes on something super important, the bills are in my humble and experienced opinion going no where, our representatives produce too many 'go-no-where' legislation, that it shameful and a waste of our precious forests

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