OP edit title, remove “Rumor”.
I agree with the interpretation that the vehicle can be delivered way in the future as it relates to foreign assembly.
I’m more questioning whether the income limits that start on 1/1/2023 would still apply. I can see a scenario where the foreign assembled vehicle qualifies with a binding purchase agreement but the income limit still kicks in. So if you are below the income limit, the binding agreement allows you to purchase the car at any time in the future. But if you are above the income limit, the binding agreement only allows you to purchase the car prior to 1/1/2023. Thoughts?
One thing is for certain. Lawyers for EV manufacturers gonna make bank fighting this. It’s almost as if it was written this way on purpose with the input of trial lawyers. But I’m much too old to be this cynical.
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This says old rules. So that would imply the income limitations don’t exist either. Also implies the US only rule doesn’t apply either.
When I read this before, I didn’t think it was clear. But when I read it now, I guess it does say “the rules that were in effect” which should apply to both vehicle and buyer. Thanks for the input.
And how do you claim the $7500 credit in this scenario if you haven’t received the vehicle yet?
Do you declare on your 2023 tax returns in April 2024 and will they ask you for the binding contract?
Currently, the $7500 credit is easy to file for… just enter make, model, VIN and purchase date and you’re done. Will the new IRS form require attaching a binding contract agreement or will the form now just have 'Date you entered into binding contract agreement" and use the honor system?
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The IRS has yet to publish guidance for the hoe to handle this procedurally.
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If you take delivery after Dec 31, 2023 but before April 15 of an EV that qualifies for some or all of the EV rebate, can you include it on your 2022 taxes filed by 4/15/2023 or do you need to wait until the following year?
See post above yours
They can always push it to April 15 of next year, similar to IRA contribution to reduce tax burden for prior year. Not saying they would, but not hard to enforce.
Could very well be the honor system. As the honor system includes a felony for tax evasion.
for anyone wondering about the remainder of the electrification and energy improvement credits, it seems they’re being left to the states to deal with.
Yet another proof of effect of Inflation Reduction Act! (Unless the Mach E isn’t one of the currently eligible vehicles for the credit). It was supposed to save the customers money but I’m so surprised its going to the pockets of the manufacturers, gifted by our tax money!
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This makes for a good click bait title, but let’s dive in a bit deeper.
The Mach E already got $7500. The Mach E very well may get $0 tax credit moving forward. Best case scenario, the new tax credit kept things as status quo.
Ford also raised the price on the higher trims of the lightning that are not eligible for the new tax credit.
The only argument one could make here to suggest the new tax credit is going straight into their pockets is that Ford was starting to approach the 200k vehicle limit.
I would be willing to bet that if we look at the 2023 calendar year and calculate the total amount of EV credit dollars that go to Ford products with the new tax credit, it’ll be significantly less than the amount of EV credit dollars that would have gone to Ford products under the old tax credit, even with the phase out from them hitting their 200k limit somewhere around the end of this year/beginning of next year and triggering the phase out. 2024 on is a different story, but in the short term at least, I don’t see this being a net positive for Ford.
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The EV credit is gone.
Mazda sells OUT of the 100Mile range MX-30…
It’s madness I tell you.
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Still, those are just running Sally and Jonny to school in the mornings and home in the afternoons.
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Not hard to sell out when it’s a compliance vehicle where they built a whopping 505 of them and then stopped production due to production issues short of how many they were planning to build.
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If I buy/lease an ev between now and 12/31 I’ll get the $7500 if its final assembly is in NA? Except Tesla and Chevy?
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