I began throwing around the idea of leasing a Ford F150 lightning so I contacted a dealer who has one in stock. When I asked about the $7500 tax credit he said I would have to claim that on my taxes. Is that true? I was under the impression that the $7500 is reduced off the price of the vehicle and essentially claimed by the leasing company. I thought the only way you had to file at tax time is if you purchase the vehicle rather than lease it?
Ford does not pass through the $7500. You would have to file on your taxes if eligible.
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*if you purchase instead of leasing
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For leases: It is claimed by the leasing company. They are just not legally obligated to pass on a cent of it. And you don’t get to claim it either.
For purchase, read @jeisensc comment above.
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That’s what I thought. So I’m not sure if this dealership is not familiar with how it works or if the leasing company simply won’t pass on the credit.
The dealership knows how it works.
The ones passing through credits right now are cars that are otherwise not eligible for $7500 tax credit to individuals such as cars not assembled in America and cars that use Chinese or Korean battery packs.
It is eligible. Ford just chooses not to pass it on to people choosing to lease from what I understand. Correct me if I’m wrong, but they must be keeping the $7500 for themselves?
Be very wary of someone who feeds you information that benefits themselves and screws you over.
The person who takes them at their word will leave the dealership in a leased vehicle thinking they’ll get the tax credit when filing their tax returns next year. And then they’ll be SOL.
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What’s the MF & RV anyways? Ideally you’ve worked out a ballpark deal before talking to any of these places. It’s pretty rare to see a Ford lease on LH for good reason. Historically Ford Motor Credit has turned the levers of a good lease to where it makes more financial sense to finance it.
Point being even if they include the $7500 which they aren’t, it still may not be an attractive lease. The most recent price cut should help things but it isn’t going to make up for the other factors on its own. I get your kind of stuck here in wanting a relatively new Ford product without the risk of ownership however financing may be the answer here depending on what a lease could even look like.
Any incentives or private offers you qualify for? Carb state?
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Yes, the F150 is 100% eligible as it is made in America with batteries sourced here. this is why you can claim the tax credit on your taxes, the full 7500 on purchases.
On a lease, Ford motor credit or whomever is leasing it is keeping hte credit. They may or may not pass any of it on, either as a direct credit as many lease companies are doing OR supporting the MF and Residual instead of passing on the full credit up front.
Originally, the whole notion of passing on the $7,500 tax credit came from EV companies who were not eligible for full $7500 as a credit on individual returns, think VW, Hyundai, etc. They started passing on the $7,500 via sales discount and now we are all used to it.
However by law, there is nothing that states they have to pass on ANY credits on a lease, and why most people are buying the F150 lightning anyway.
The Lightning is going to be a vehicle you purchase, get the $7,500 then sell to your business and write off 100% of it anyway with accelerated depreciation.
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Correct. @Agn5009, you can check the details of the IRS credit for New Clean vehicles at Credits for New Clean Vehicles Purchased in 2023 or After | Internal Revenue Service.
I’m in PA so unfortunately not a carb state. The only other incentive I know is qualify for is first responder.
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