I just wanted to confirm something - does the $300k income restriction only apply to a purchase and not a lease?
Yes only purchase
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Just remember on a Lease, not all EV cars get $7500.
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I wonder if there’s a list of EV’s that do NOT get the $7,500 pass through on a lease… that list is probably really short. All that comes to mind are:
BMW X5e
BMW 530e
Fisker Ocean (I don’t think it’s leasable now)
Edit: Silverado EV truck doesn’t seem to have the pass through yet
Just about every other BEV, PHEV, or FCEV seems to get the credit on a lease. Even a McLaren Artura gets the $7,500 credit on leases.
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With the ev market right now, only foolish one will not pass the $7.5k to its customer.
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For both of you
Toyota - Rav 4 Prime $7250 - Used to be $6500
Might as well put the Prius Prime on that list too. The no $7,500 list keeps growing!
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The only one is selling is bmw lol
Chevy’s approach currently seems to be to add the $7500 to the rv rather than give it as a cap cost reduction. At least thats what theyre doing on the blazer
Yeah, they call it a residual enhancement, but then call it a $7,500 in applied incentives as well. I can’t tell what they’re doing, and I don’t want to get spammed by Chevy Dealers any more than they already spam me since I signed up for a Silverado EV.
When I tried to decompose their national offer last month, the residual in the LH calculator was so low, that it didn’t feel like the $7,500 was going to subventing the residual.
You could probably find that info here: Federal Tax Credits for Plug-in Electric and Fuel Cell Electric Vehicles Purchased in 2023 or After
That’s for purchases, not leases.
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Seems like it, I thought everything was included in there so in that case all I could find was a faq about eligibility rules.
Yes the hidden deep in the IRS doublespeak is
- 30W Purchases By a Consumer direct (a consumer lease is NOT a consumer purchase) - Must follow a whole slew of rules to get $7500
- 45W Purchases by a Business (including a consumer lease) - You (the business or bank) get $7500 on all EVs and PHEVs. (I think there is a battery size requirement but I forget who doesn’t cover that)
So a lease can get $7500, and almost 95% give it back to the consumer.
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Yeah, and the 5% that do not give it back to the customer on a lease is that short list we’re attempting to cobble together.
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Multiply the msrp by the ratefindr rv and then add $7500 to the calculated rv. Thats the actual rv.
Oh ok so if you were to get a Blazer EV right now, the dealer will show a RV that is higher than the MSRP x Ratefinder RV. But, it seems like the customer is benefitting from the $7,500 either way so it’s probably mostly moot. Like AutoCompanion shows the $7,500 as lease cash, which is probably more simple for folks to grok.
I’m trying to figure out if the approach of subventing the resid is better or worse than the more common method where the $7,500 is treated as a taxable rebate (customer cash).
On the one hand, the MF is now multiplied against this higher resid. So you’re paying rent factor on the $7,500. On the other hand, burying the $7,500 in the resid makes the $7,500 sales-tax exempt in most areas. This is where it comes in handy that @delta737h uses LH hahah.
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The biggest issue is if tou are trying to do a lease to buy to capture the ev credit
Are there any implications to that for the leasee in terms of TCO?
Increases total rent charge because youre maintaining a higher adjusted lease cost.
In most states, it decreases your upfront/capitalized tax liability because it isnt a taxable incentive.
If it increases or decreases your tco will depend on your state’s tax laws and the mf on the lease.
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