Tax Credit?

[kapk22]

Anyone know if the actual credits possible for the short vs long range models?

From what I have read, there hasn’t been a confirmation yet.

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[PandaSlash]

Anyone know if the actual credits possible for the short vs long range models?

From what I have read, there hasn’t been a confirmation yet.

The current federal tax credit doesn’t matter between ER AND SR battery, however some state tax credits or rebates like NJ do.

I’m not sure how often the state rebate programs get updated. If the federal EV tax credit does get changed or expanded, then you’ll know in October as the house has set a tentative vote day of 9/27(but must vote on it by 9/30).

 

[vandy1981]

The current federal tax credit is based on battery size and max out at $7500 (I think it only applies to the first 16 kWh). Both battery pack sizes would easily meet that threshold.

This is subject to change if any new reconciliation incentives materialize with the current congress.

 

[Blainestang]

Anyone know if the actual credits possible for the short vs long range models?

From what I have read, there hasn’t been a confirmation yet.

As of today, both would get the $7,500 federal tax credit.

A few notes, though:

-In order to get the full credit, your federal tax liability must be at least $7500 for the year in which you bought the truck.

-There's a trigger of 200,000 credited vehicles per manufacturer (US sales only), which triggers a schedule of reductions in the tax credit, eventually down to zero after a few quarters. Ford has used ~130,000 of these credits as of today, give or take. Depending on how many Mach Es and Plug-in Hybrids Ford sells over the next year or two, plus how quickly they build Lightnings, will substantially influence how many Lightnings get to take advantage of the credits.

-Congress is considering completely revamping the EV tax credit, which would bump the Lightning up to $12,500 credit with no tax liability requirement (refundable credit), in which case all of the above is out the window. Will it pass? Don't know. Will it still have an $80k limit written in it that would block tax credits for the really high end Lightnings? Don't know.

 

[vandy1981]

I’m not sure how often the state rebate programs get updated. If the federal EV tax credit does get changed or expanded, then you’ll know in October as the house has set a tentative vote day of 9/27(but must vote on it by 9/30).

The 9/27 date applies to the bipartisan infrastructure bill which does not include changes to consumer EV incentives.

The house will try to pass a budget reconciliation bill before that date, but there will likely be significant changes when it hits the Senate that may or may not include changes to the BEV credits.

 

[Fordskeptic]

The 9/27 date applies to the bipartisan infrastructure bill which does not include changes to consumer EV incentives.

The house will try to pass a budget reconciliation bill before that date, but there will likely be significant changes when it hits the Senate that may or may not include changes to the BEV credits.

I think the oft repeated motto on this forum applies here. Plan on receiving no tax credits or incentives and you won't be disappointed and any credit or state incentives you receive would be a pleasant surprise.

Easy to say, but for some folks (myself included) these can make or break the decision. One thing seems certain, the tax credits and incentives are not going to last forever.

 

[sotek2345]

I think the oft repeated motto on this forum applies here. Plan on receiving no tax credits or incentives and you won't be disappointed and any credit or state incentives you receive would be a pleasant surprise.

Easy to say, but for some folks (myself included) these can make or break the decision. One thing seems certain, the tax credits and incentives are not going to last forever.

The tax credit isn't make or break for me on the Lightning, but is does weigh in to the trim level decision. I guess the silver lining is that a later delivery of the Lightning gives me more time to pay down my current truck and therefore get more net trade in value.

 

[PandaSlash]

The 9/27 date applies to the bipartisan infrastructure bill which does not include changes to consumer EV incentives.

The house will try to pass a budget reconciliation bill before that date, but there will likely be significant changes when it hits the Senate that may or may not include changes to the BEV credits.

You are correct, the bipartisan bill doesn't address the tax credits.

But I am still under the impression they are committed to passing the budget reconciliation bill around the same time as the bipartisan infrastructure bill. But the timeline is still a mess in general. From what I've read, "the House will take up the bipartisan $1 trillion infrastructure bill by Sept. 27, and that the House won't vote on the larger "human" infrastructure bill until there are 51 guaranteed votes in the Senate." If the bipartisan infrastructure bill doesn't pass by 9/30, they risk some current programs going defended - which the dems probably want to avoid going into an election year.

That being said we have no idea what the future holds for tax credits or rebates or changed to the current policy. Hopefully we do soon though!

 

[kapk22]

You are correct, the bipartisan bill doesn't address the tax credits.

But I am still under the impression they are committed to passing the budget reconciliation bill around the same time as the bipartisan infrastructure bill. But the timeline is still a mess in general. From what I've read, "the House will take up the bipartisan $1 trillion infrastructure bill by Sept. 27, and that the House won't vote on the larger "human" infrastructure bill until there are 51 guaranteed votes in the Senate." If the bipartisan infrastructure bill doesn't pass by 9/30, they risk some current programs going defended - which the dems probably want to avoid going into an election year.

That being said we have no idea what the future holds for tax credits or rebates or changed to the current policy. Hopefully we do soon though!

so, if we do the $100 reservation and ultimately pay the full amount off in 2022, we will presumably qualify for a minimum of $7500.

that’s if they don’t get rid of the credits. I cannot imagine they would go away completely.

 

[Fordskeptic]

You don't have to pay off in 2022 to get the tax credit. You have to take possession as I understand it.

 

[PandaSlash]

so, if we do the $100 reservation and ultimately pay the full amount off in 2022, we will presumably qualify for a minimum of $7500.

Ideally - yes. However, this is the current EV policy - we still don't know if the tax policy will change.

It depends on if Ford hits their EV tax credit cap of selling 200K total EVs by the time you take delivery of your vehicle. It would be a maximum of $7,500 based on the current tax credits and if Ford doesn't hit their cap. However, If the cap is hit, then the tax credit begins to phase out for vehicles at the beginning of the second calendar quarter. Thus, the $7,500 credit would be reduced by 50%, so you would receive a $3,125 tax credit instead.

 

[PandaSlash]

You don't have to pay off in 2022 to get the tax credit. You have to take possession as I understand it.

Correct. Delivery time is the determining factor.

This is why some Tesla owners earlier this spring would keep pushing back their delivery dates by a few months with the expectation of an EV tax credit change.....clearly that hasn't worked out for those owners.

 

[kapk22]

Ideally - yes. However, this is the current EV policy - we still don't know if the tax policy will change.

It depends on if Ford hits their EV tax credit cap of selling 200K total EVs by the time you take delivery of your vehicle. It would be a maximum of $7,500 based on the current tax credits and if Ford doesn't hit their cap. However, If the cap is hit, then the tax credit begins to phase out for vehicles at the beginning of the second calendar quarter. Thus, the $7,500 credit would be reduced by 50%, so you would receive a $3,125 tax credit instead.

i forgot about that. Thank you for the reminder. When a reservation is made, is there a way to determine what number yours is? Ie. 143,589 out of 200,000

disregard. Sounds like a gamble either way. Especially if it ends up being like other orders. Some that ordered earlier than others have still taken delivery much later.

 

[PandaSlash]

i forgot about that. Thank you for the reminder. When a reservation is made, is there a way to determine what number yours is? Ie. 143,589 out of 200,000

disregard. Sounds like a gamble either way. Especially if it ends up being like other orders. Some that ordered earlier than others have still taken delivery much later.

Lol - please don't open up that can of worms. I would imagine (and this is pure speculation and somewhat best-case scenario for the F150L) that if you made a reservation within 12-24 hours of the F150L release video, then you may take delivery in 2022. But this is heavily dependent on Ford getting enough quality parts and battery packs and also dependent on what trim/options you order as Ford will most likely prioritize some trims/options over others.

Ford has said all trims will be available in spring 2022, but we don't know to what extent. I'm making this up but it could be 10% pro, 10% XLT, 40% Lariat, 40% Plat instead of an even split.

 

[shutterbug]

i forgot about that. Thank you for the reminder. When a reservation is made, is there a way to determine what number yours is? Ie. 143,589 out of 200,000

disregard. Sounds like a gamble either way. Especially if it ends up being like other orders. Some that ordered earlier than others have still taken delivery much later.

It doesn't matter what number is yours. If Ford reaches 200K on the 1st day of a quarter, everyone who buys during that quarter, still qualifies. IRS publishes quarterly numbers. As of 3/31/2021, Ford's total is 134,195.

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