Tax Credit?

[greenne]

The reconciliation package is really the FY22 federal budget, so if they don't pass it by the end of Sept., either you get a government shutdown or they have to pass a continuing resolution to keep the lights on.

They could I suppose do a continuing resolution to kick the can down the road....but I think the majority party would want to get their crap together and pass it(Reconciliation pkg) ASAP. Things only get more complicated the longer it sits. Not to dive into politics, but it wouldn't be a good look for a party with congressional majority to be in gridlock with itself. I'm thinking they are going to want to avoid that at all costs.

Good eye-- I didn't catch that the reconciliation and budget were the same...

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[sotek2345]

They could I suppose do a continuing resolution to kick the can down the road....but I think the majority party would want to get their crap together and pass it(Reconciliation pkg) ASAP. Things only get more complicated the longer it sits. Not to dive into politics, but it wouldn't be a good look for a party with congressional majority to be in gridlock with itself. I'm thinking they are going to want to avoid that at all costs.

Good eye-- I didn't catch that the reconciliation and budget were the same...

Given past history, I suspect they will miss the end of the Federal fiscal year and go into continuing resolution, and then get something passed before the end of the calendar year.

I work in Defense, and our budgets get jerked around by this every year (which directly impacts my work), so I am very familiar and follow it pretty closely. Everything right now is just posturing for political points. Around mid-September things will heat up and we will see if they can get something through or will punt and do a CR. I don't think there is a big risk of a government shutdown, but the debt limit discussion will lead to some brinksmanship.

 

[greenne]

Given past history, I suspect they will miss the end of the Federal fiscal year and go into continuing resolution, and then get something passed before the end of the calendar year.

I work in Defense, and our budgets get jerked around by this every year (which directly impacts my work), so I am very familiar and follow it pretty closely. Everything right now is just posturing for political points. Around mid-September things will heat up and we will see if they can get something through or will punt and do a CR. I don't think there is a big risk of a government shutdown, but the debt limit discussion will lead to some brinksmanship.

LOL.. I used to work as a government contractor in DC, so yeah I get it. With a democratic majority(even a razor thin majority) in the Congress and the WH something will get passed by end of the year. Much better than a split congress, or split congress/WH..then its a total CF with the budget. September is always crunch time when you're in the federal workforce bubble...

I agree, a short punt is possible but I don't see a shutdown looming.

 

[cstring]

I'd like to point out that full credit is the quarter the automaker hits 200k AND the first quarter after.

So if Ford were to hit 200k "sold"(i.e. delivered to customer) the 4th qtr of 2022--(for example)..all Lightnings sold in 4th qtr and 1st qtr 2023 would be eligible--no matter how many they sold those qtrs.

50% of the credit for the following two quarters(again no matter how many are sold) and then 25% for two more quarters(no matter how many are sold).

Again that's if the current EV tax credit is unchanged.

I am thinking maybe Ford is trying to plan the production to maximize the credit for us, which in response would drive up their sales. If Ford times it right and have the production ramp-up during the quarter they hit 200k it would actually benefit more buyers, also the credit halves after in the subsequent until it hits 0. So I am thinking it might not be as bad as I initially thought it would be. But then again 2023 is gonna be a long wait...

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