For tax credit purposes, is the Mach E an SUV? I'm not so sure...

[murphy62]

I don't think you will have an issue frankly, but curious why you say that a small station wagon is classified as a sedan--I didn't see that anywhere but may have missed it.

My PA title says the body type is SW. It does not define SW. I assume it means station wagon.

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[Whatstreet]

The Mache must is a small pickup with an enclosed bed.

 

[veronicablack]

I don't think you will have an issue frankly, but curious why you say that a small station wagon is classified as a sedan--I didn't see that anywhere but may have missed it.

If you click the little "i" next to the "EPA class size" it pulls up a chart that puts station wagons underneath "cars"

 

[veronicablack]

i am of the opinion if you need the tax credit to max it affordable, then I wouldn’t buy the car. This is in no way a comment on the likely hood of getting that tax break as much as the way I financially plan. Too many variables and things can happen that can cause you not to get the tax credit, so I personally plan as if I’m not getting it. Again though this is just the way I financially plan, I’d rather be surpsied by something being cheaper then more expensive.

I tend to try to be conservative here too. Especially in my big purchases. I can afford eating the $7500 so it's not like this is going to financially ruin me, but I'd rather not. But I also ordered this car months ago and was not at all expecting such a change. It's just taking a very long time for delivery to occur.

 

[ARK]

OP raises a very interesting point. If this new tax credit becomes law, they would hopefully use a new definition of SUV. But if it just references EPA classification, I don’t see how the sedan’s $55,000 limit would not apply.

Frankly, even if the new tax credit law says nothing on what counts as an SUV or not, that would be troubling for the Mach-E’s prospects because other federal law already treats it as a non-SUV, so there is an easy definition for the IRS or a court to use.

Hopefully Ford has raised this issue with someone in Washington.

 

[easycomeeasygo]

OP raises a very interesting point. If this new tax credit becomes law, they would hopefully use a new definition of SUV. But if it just references EPA classification, I don’t see how the sedan’s $55,000 limit would not apply.

Frankly, even if the new tax credit law says nothing on what counts as an SUV or not, that would be troubling for the Mach-E’s prospects because other federal law already treats it as a non-SUV, so there is an easy definition for the IRS or a court to use.

Hopefully Ford has raised this issue with someone in Washington.

I tend to try to be conservative here too. Especially in my big purchases. I can afford eating the $7500 so it's not like this is going to financially ruin me, but I'd rather not. But I also ordered this car months ago and was not at all expecting such a change. It's just taking a very long time for delivery to occur.

You are completely correct. I have been tracking this same issue in CA because the state is going to vote next month on limiting the state rebate to cars under $45,000 and SUV's under $60,000. the state of CA uses the EPA classification as the determining factor and the EPA has determined the MME is a small station wagon. Pull up any MME window sticker and look at the fine print on the upper right hand corner and you will see the designation. So CA buyers are in for a rude awakening when the new plan goes into effect next Feb (2022). So if the federal government goes forward with their proposed changes you have to assume they would also classify it as a car and not an SUV....

 

[RickMachE]

A 2021 delivered vehicle will get the existing tax credit. Period. Any new credit, and rules, us for 2022 deliveries. OP's concern is unwarranted.

 

[DevSecOps]

My PA title says the body type is SW. It does not define SW. I assume it means station wagon.

This is the correct way to see how a state classifies a vehicle. Lot's of guessing will not help. In California, for example, it's a Body Type Model UT = Utility. Have someone in your state look at their registration card and it should have the body style listed for your state.

https://www.dmv.ca.gov/portal/handb.../chart-1-body-type-model-and-body-type-codes/

 

[veronicablack]

This is the correct way to see how a state classifies a vehicle. Lot's of guessing will not help. In California, for example, it's a Body Type Model UT = Utility. Have someone in your state look at their registration card and it should have the body style listed for your state.

https://www.dmv.ca.gov/portal/handb.../chart-1-body-type-model-and-body-type-codes/

But since it's a federal tax credit and not a state credit, wouldn't it matter how the feds classify the MME? Not the states?

 

[DevSecOps]

But since it's a federal tax credit and not a state credit, wouldn't it matter how the feds classify the MME? Not the states?

According to the NHTS it's an SUV:
https://www.nhtsa.gov/vehicle/2021/FORD/MUSTANG MACH-E/SUV/AWD

That's the same classification CA gives it with UT

 

[RickMachE]

But since it's a federal tax credit and not a state credit, wouldn't it matter how the feds classify the MME? Not the states?

Yes.

But it is irrelevant in the situation you proposed, a 2021 purchased by 12/31/21. Only relevant for a new tax law, should one be approved and put into law, and then the classifications would be available to understand before purchase.

 

[ARK]

Yes.

Bit it is irrelevant in the situation you proposed, a 2021 purchased by 12/31/21. Only relevant for a new tax law, should one be approved and put into law, and then the classifications would be available to understand before purchase.

That’s not quite accurate, Congress can in theory make the change retroactive, but it’s highly unlikely to do so because of the uproar it would cause.

 

[RickMachE]

That’s not quite accurate, Congress can in theory make the change retroactive, but it’s highly unlikely to do so because of the uproar it would cause.

Right. Zero chance.

 

[veronicablack]

Right. Zero chance.

But it is definitely a possibility that someone who ordered in 2021 could end up taking delivery (and thus completing the purchase) in 22. I ordered months ago and now have a car on chip hold since beginning of this month. I'm hoping for mid December but you never know...

 

[RMoore]

It is somewhat disconcerting that different federal agencies call the MME different things.

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