Federal EV tax credit overhaul

I didn’t realize there were so many Ford incentives on the MachE, I thought they were selling for MSRP with no manufacturer incentives. $37k is definitely a great price if you are getting the big battery and awd…

My incoming ordered Mach E is a Premium base, standard range battery, RWD.
Barely made the $55K IRS cutoff by $25.

My original order was back in April and since Ford pushed my order into a '23, they are giving $6500 back as a price adjustment to make it the same as a '22.

And if I choose the balloon finance, they are giving $2000 incentive.

Plus state & Ford credit (Ford Pass points) gets me down to $37K before TTL.

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Looks like Audi is giving $7500 on leases. Now is VW going to follow?

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Can you share a link to the Audi 7500 incentive on lease?

Here you go

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Im surprised I havent seen anyone advertising that as of the end of 2022. The rules for how the $7500 federal tax credit has been changed.

" The IRS has given automakers and EV shoppers who prefer to lease a way to circumvent the new North American assembly requirement for a $7,500 federal tax credit for EVs and other clean cars. The new requirement has stripped many previously qualified clean vehicles of their eligibility.

In a “guidance” ruling issued just before the end of 2022, the agency said that commercial vehicle regulations for the clean vehicles credit allow leasing companies to claim it for vehicles they purchase to lease to consumers. “Clean vehicles” are defined as fully electric, plug-in hybrid and fuel cell electric cars, trucks and SUVs.

Unlike the rules relating to consumer purchases of clean vehicles, the commercial rules do not require clean vehicles to be assembled in North America—the U.S., Mexico or Canada—in order to be eligible for the credit. Nor do they impose a weight limit or price cap on the vehicles or an earnings cap on lessees.

As it stands, consumer rules govern consumer purchases, not leases. For those purchasing, the guidelines limit the gross weight of eligible clean vehicles to 14,000 pounds and cap the price to $55,000 for cars and $80,000 for vans, SUVs and pickups. "

However after looking at some dealers websites. Many of the 2023 S60 Hybrid plug ins were over $55,000. So I copied the vin #s and pasted them here to see if they qualify. I heard that Volvo would be finishing up their cars in the US. I just didnt know when. Therefore Im assuming since Volvo is now finishing their S60 T8’s here in the US. It doesnt matter whether they are over $55,000 Alternative Fuels Data Center: Electric Vehicles with Final Assembly in North America

Here is a link to the IRS website showing which manufacturers show finally assembly in the US. Unless I mis-read everything. These would qualify for the $7500 fed tax credit https://www.irs.gov/credits-deductions/manufacturers-and-models-for-new-qualified-clean-vehicles-purchased-in-2023-or-after

The MSRP matters for the consumer purchase tax credit. The MSRP does not matter for the leasing situations, but the captives/banks get the tax credit, not the lessee. Some captives/banks are passing through some or all of the tax credit.

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Anything on official Audi site about 7500 credit on lease. If true then Tesla just started a war which rest will follow to compete if they want to make any sale in EV mkt.

Not from the official Audi website, but here is from the palo alto dealership

Another from Huntington MB dealer…

Audi just dropped this today. It’s official as a dealer sent it to me.
AFS EV Lease Bonus - $7500
2022/23 - Q5 55e, etrons, etron SB’s, Q4’s, etron GT and RS etron GT

Doesn’t stack with any existing customer credit money (etrons had some).

VW also passes on the tax credit

That would make the base Id4 effectively a $30k car, I wonder if a flip would still be possible after the Tesla price cuts…

Edit: I just checked my reservation and they bumped the price up to $39k. With destination on top, it is now a $40k car, not the original $37.5k that they promised when I reserved it.

Scared Still Waiting GIF by Looney Tunes
Anxiously waiting for BMW to do the same :slight_smile:

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When will tesla allow leases to grab that 7.5k credit?

Still nothing.

Magic 8 Ball GIF by Jim Gaffigan

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BMW could have done it for years with the x5 45e (amd possibly 330e?), but chose not to.

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There was a time when 530e and 330e were very attractive leases when bmw passed through the incentives.

MB 350e had also an insane lease deal when they passed through their incentives as well.

With the current market pressure, one can hope it’s only a matter of time :slight_smile: