Usually get refund. How should i prepare for EV credit?

[PungoteagueDave]

but you get the full tax credit for two quarters after they hit 200k sales, so that means potentially deliveries into 1Q cy23 will also qualify.

correct, and with 20k first-day reservations, with Ford hitting the limit in 3Q, it will use up the entire 2022 MY run of Lightning deliveries through year end. I should have been clearer above. After officially reaching 200,000 units, the full amount will be available through the end of the particular quarter (in this case 3Q2022), and for the two following quarters, so through the first quarter 2023. Then it will be decreased to 50% for another two quarters ($3,750 for deliveries through Sept 2023) and to 25% for the final two quarters ($1,875 for deliveries through March 2024), so there will be SOME credit available for many of the early reservations after day one.

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[Ccarm6]

correct, and with 20k first-day reservations, with Ford hitting the limit in 3Q, it will use up the entire 2022 MY run of Lightning deliveries through year end. I should have been clearer above. After officially reaching 200,000 units, the full amount will be available through the end of the particular quarter (in this case 3Q2022), and for the two following quarters, so through the first quarter 2023. Then it will be decreased to 50% for another two quarters ($3,750 for deliveries through Sept 2023) and to 25% for the final two quarters ($1,875 for deliveries through March 2024), so there will be SOME credit available for many of the early reservations after day one.

Don’t forget about priority list people. May bump some proportion of first-day reservation people out of full tax credit, assuming the priority people’s deliveries will occur in same time frame as everyone else that were close to the same time order-entry wise. Would find it hard to believe that they would make a priority list of people and then deliver based on time stamp and not time of order entry.

 

[sd25]

but you get the full tax credit for two quarters after they hit 200k sales, so that means potentially deliveries into 1Q cy23 will also qualify.

I think the full tax credit is only available for one quarter after the quarter with 200k sales. Here's a quote from the IRS website:

Taxpayers may claim the full amount of the credit up the end of the first quarter after the quarter in which the manufacturer records its sale of the 200,000th qualified vehicle. For the second and third calendar quarters, taxpayers may claim 50% of the credit. For the fourth and fifth calendar quarters, taxpayers may claim 25% of the credit. No credit is allowed after the fifth quarter. Section 4.07 of Notice 2009-89 provides that a vehicle is not “acquired” before the date on which title passes under state law. ​

At the rate Ford is now selling EV's, I'm wondering if they might hit 200k as soon as Q2.
Here's why...

As of the end of 2021, Ford was at 149,525 vehicles.

https://www.irs.gov/businesses/irc-30d-plug-in-electric-drive-motor-vehicle-credit-quarterly-sales​

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Ford recently said they sold 13,169 EV's in January 2022.

https://media.ford.com/content/dam/fordmedia/North America/US/2022/02/02/jan-ford-2022-sales.pdf​

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[Ken]

that is what I meant to say but it came out wrong. People normally talk about two quarters but it's actually the one that the manufacturer hits 200k in sales and the one after that as you quoted. Hopefully most if not all of the 2022 deliveries make it.

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