US Federal EV Tax Credit - Things to know

Mach Daddy

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That’s my fear as a GT rez holder. Though the elections might bring an extension of the credit.

Base Mach E buyers also get a great benefit in WA. No sales tax, which for new cars can be over 11% in the Seattle area.
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eager2own

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Ford was at 121K units at the start of this year. Keep in mind, Ford only sold 8,300 qualifying vehicles in all of 2019.
I doubt that they did even that pace the first half of this year with depressed sales (especially on non-Tesla EVs), but let's say they've sold 5k. So Ford might be at 126k units sold to date.
They will sell 14k MMEs in the U.S. over the next twelve months and, at most, 8k units of the other EVs not including MMEs or Escapes. That gets them to 148k units.
I don't know how successful the Escape PHEV will be in the next twelve months, but it won't be selling 50k.
But even if Ford knocks it out of the park in the next twelve months, in an absolute worst case scenario, the 200k mark is reached beginning of Q3 and the full credit is still valid that quarter and the subsequent Q4.
In my view, a worst case scenario is that the full tax credit is only available through Dec. 31, 2021. And of course, we still get 50% for six months after that.

TLDR Version: I'm still not worried about not getting 100% fed. tax credit on a 2021 GT.
 

Mach Daddy

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TLDR Version: I'm still not worried about not getting 100% fed. tax credit on a 2021 GT.
I’ll take it! I had been sweating Bullits since I only sold my wife on the GT Performance with the tax credit ?...it has to be close to the MY Performance price.
 

dbsb3233

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C-Max Energi: 40k total
Fusion Energi: 53k total
Focus Electric: 9.2k total
Looks like Ford is about 1/2 way there. A full year of 50k of MME's brings them 3/4 of the way there (not to mention the addition of the Escape PHEV). Of course not all of that 50k will be in the US but I would bet the balance of the 50k is filled in with the Escape.
We've heard only about 15k-20k of the 50k 2021 MMEs will be sold in the US. But then the 2022's should go on sale in 4Q2021. I'd guess that it will take BOTH model years to reach near 50k in US sales.

Escape PHEV is an unknown, but sales of PHEV versions of existing ICE models are still slow to take off because they're significantly more expensive. The recession will likely keep them slow for a while.

The F-150 BEV will come along at some point but it's sounding more like at least 2022 now.

My guess is that Ford won't reach the 200,000 limit until 2022. And then there's an extra quarter of full credits after the quarter they hit the number. I think it's probably safe until at least 2Q2022. Maybe even 3Q or 4Q.
 

cjljr41

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For the tax gurus out there: If I finalize the purchase before the end of 2020 (i.e. sign on the dotted line), but take physical delivery in 2021 due to delays, which year do I get to claim the federal tax credit?
 


JamieGeek

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Given that you have the option of test driving it before taking posession it is likely that you won't sign any papers until the day you drive it off the lot.
 

cjljr41

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Given that you have the option of test driving it before taking posession it is likely that you won't sign any papers until the day you drive it off the lot.
That’s true...
 

Paulalex01

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I would add one other example:

Example 4: Like Example 3, your tax liability is greater than the tax credit, but in addition your liability is greater than your tax withheld. This could happen when your deductions reduce your total liability.

Tax liability: $17,500​
Apply credit: -$7,500​
New tax balance: $10,000​
Tax withheld: -$12,000​
Refund: -$2,000
This example is very revealing. It points out that a person needs to reduce their withholdings so as to taking advantage of the full $7500. Pretty sure will get car next year so...
 

dbsb3233

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This example is very revealing. It points out that a person needs to reduce their withholdings so as to taking advantage of the full $7500. Pretty sure will get car next year so...
Not exactly. Only in order to get the cash THIS YEAR. Otherwise you just get the $2000 balance back on your tax refund next April.
 

SD_Solar

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Yep, your with holdings only determine if you overpaid or underpaid your Tax Liability for that Tax year.
 

kennelh

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This example is very revealing. It points out that a person needs to reduce their withholdings so as to taking advantage of the full $7500. Pretty sure will get car next year so...
Exactly. You need to end up with $7,500 or more in income tax to get the full amount of the credit.
 

timbop

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This example is very revealing. It points out that a person needs to reduce their withholdings so as to taking advantage of the full $7500. Pretty sure will get car next year so...
NO. The example illustrates a change from OWING $5000 to GETTING BACK $2500: a net difference of $7500. The ONLY WAY you don't get the full advantage of the $7500 credit is if your LIABILITY is below $7500.
 

Paulalex01

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NO. The example illustrates a change from OWING $5000 to GETTING BACK $2500: a net difference of $7500. The ONLY WAY you don't get the full advantage of the $7500 credit is if your LIABILITY is below $7500.
I'm not sure what example you are referring to but, if your liability is $7500 and you have withheld (paid) $7500 during the year from your income. There will be no incentive. You have to owe the government money (liability). It's $7500, or more, to take full advantage of the incentive.
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