Yep. If the MSRP is less than $45k including destination, before any rebates, the first $20k of the sale price is exempt from sales tax.
Edit: only certain PHEVs qualify. You have to check the site. Has to do with range.
Correct, the list is here: https://data.wa.gov/Transportation/WA-Tax-Exemptions-Potential-Eligibility-by-Make-Mo/aug9-4a7g
The forum’s pandemic superstar Wrangler 4XE is not on the list with its tiny 22mi range.
Out by price anyway. Lol
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That’s not how the phase-out on the current federal tax credit works. If they hit 200,000 eligible sales in this quarter, beginning April 1 it would be 75% and reduce by 25% per quarter until it’s 0. There are no limits on number of cars that can claim the credit during the phase-out.
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As I stated, for Toyota, if it hits the 200k figure by March 31, 2022, the credit will be cut in half beginning July 1, 2022. It will be reduced to 25% beginning January 1, 2023, and will be eliminated beginning July 1, 2023.
This information is directly from the IRS website:
Qualified Plug-In Electric Drive Motor Vehicle Credit (IRC 30D) Phase Out
The qualified plug-in electric drive motor vehicle credit phases out for a manufacturer’s vehicles over the one-year period beginning with the second calendar quarter after the calendar quarter in which at least 200,000 qualifying vehicles manufactured by that manufacturer have been sold for use in the United States (determined on a cumulative basis for sales after December 31, 2009) (“phase-out period”). Qualifying vehicles manufactured by that manufacturer are eligible for 50 percent of the credit if acquired in the first two quarters of the phase-out period and 25 percent of the credit if acquired in the third or fourth quarter of the phase-out period. Vehicles manufactured by that manufacturer are not eligible for a credit if acquired after the phase-out period.
Great info, thanks! Any way to tell how many a specific manufacturer may have already sold for use in the USA? For example, Hyundai has two models on the approved list from what I could see.
I’m interested more now in the Hyundai Tucson Plug-in hybrid but they are also extremely rare (not a shocker). We also can’t get them yet to any dealer in WA state as only some states have them. Portland has a dealership with one and it’s marked $5k over MSRP.
Another Portland dealer is providing me with pricing to order one to build and it’s marked up $6k.
Is there a better way to search inventory up and down the west coast on this model? Like using cargurus or something to submit a search?
I did contact Jim. He doesn’t have any Primes avail now, said to ping him on April 1 to see if anything could be coming in May. Looks like the markup is an expected 4 to 5k.
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Pinged the Portland dealer about this question. He said it sounds right but he’s not 100% sure of WA state rules. He did state that if I was bringing a trade-in, that amount would be removed from taxable total.
The app that his dealership uses gave me an initial estimate of $30k on my 2019. If that’s the case, this Tuscon PHEV would have an MSRP of $43,945 plus 6k dealer add for a selling price of $49,945.
Take out the 30k (if that holds true) and I’m just paying 10.1% on $19,945 right? Of course this is after I pay 10.1% on $21k to buy out the CR-V.
Then get the fed tax credit of $7,500. Is this a horrible scenario? Maybe it’s horrible if the financing doesn’t look good. Still trying to avoid fronting cash now in preference of payments if APR is reasonable.
Got more info on WA state:
On August 1, 2019, Washington State reinstated the sales and use tax exemption for the sales of:
- Vehicles powered by a clean alternative fuel.
- Certain plug-in hybrids.
The exemption applies to dealer and private sales of new, used, and leased vehicles sold on or after August 1, 2019.
- New vehicle transactions must not exceed $45,000 in purchase price or lease payments.
- Used vehicles transactions must not exceed $30,000 in fair market value or lease payments.
These thresholds may also include the value of your trade-in, if applicable.
Example
If the cost of a new vehicle is $48,000, and the value of your trade-in is worth $6,000, you can’t receive the tax exemption. Even though the trade-in brought the cost down to $42,000, the new vehicle was still worth over the $45,000 limit. You cannot use a trade-in to lower the price of a vehicle to meet the exemption limits.
So a marked up price at $49k would kill your tax exemption, but you’d still get the trade in tax credit for flipping the CRV.
Ditto for my SIL. Drove the entire winter on RWD and winter tires without knowing it and she’s like “this is the best AWD vehicle I’ve ever driven!”
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Here is a website that tracks how many EVs have been sold by specific manufacturers.
https://evadoption.com/ev-sales/federal-ev-tax-credit-phase-out-tracker-by-automaker/
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update on this: no real traction on getting a RAV4 prime or Hyundai PHEV. Got a few numbers on Honda CR-V Hybrids but not feeling it. Looks like some of the advice I got about sticking with the 2019 for now is the best move.
Honda financial makes it easy to extend the lease - went into account, clicked extend, chose max 6 months and boom it’s done. Can end it early with 1 month notice but now I just keep making the same payment and can kick this can a bit further down the road. Which is good enough for now, I’ve got plenty of other things to focus on.
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Interesting development! Have you seen the news of the new HRV? It might be equipped with a hybrid power train too, and Honda says it will be out this summer. Maybe this is a viable alternative? https://youtu.be/WztiN5H7XuM
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