November 3rd 2021 Revised Tax incentives for EVs from House of Reps.

[Draconfier]

This is good news for some, but ultimately many people aren’t even going to be able to take advantage of the full $7,500 because their tax liability isn’t that high. I’ll be getting far less it seems. It’s unfortunate how many people think the government is just writing them a $7,500 check when tax time comes.

No, its no longer treated that way, it doesn't take in to account your tax liability, just your AGI either Married/Joint, HOH, or Single. With the ability to assign the credit towards the purchase price.

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[veronicablack]

IMHO the Government may be the only ones still using the classification of "station wagon". Chrysler introduced the Minivan to avoid the negative connotation of the "family wagon" back in the 80's.

Electric Vista Cruiser when?! The people need to be able to cruise... the vista.

 

[HuntingPudel]

This is good news for some, but ultimately many people aren’t even going to be able to take advantage of the full $7,500 because their tax liability isn’t that high. I’ll be getting far less it seems. It’s unfortunate how many people think the government is just writing them a $7,500 check when tax time comes.

As I read it, the “taxpayer” can assign their credit. If the taxpayer assigns their credit to Ford, Ford has enough tax liability to take the whole $7500.00 in credit.

 

[HuntingPudel]

Electric Vista Cruiser when?! The people need to be able to cruise... the vista.

Huh, Vista Cruiser. The first station wagon to have glass panels in its roof. I remember it well. ??

 

[Badger_Prof]

Thanks! So it would seem that as long as the Mach E is classified as an SUV this will actually be a benefit to everyone making under the income threshold, since you no longer need the tax liability to get the full $7500, and will be financing less of the cost of the car (assuming most people don't preemptively put down the $7500). That's an improvement I guess.

Without getting political about the union thing, it also makes the Bolt a freaking steal at like $23k for the base model (although I would expect GM to raise the price even though LG is covering most of the recall costs).

Yes, it looks like (under the current iteration) they would allow you to assign your tax credit to the seller if you choose to do so and if the seller chooses to allow that and registers to be eligible to do so. But, I think you will find that, if you assign $7500 to the seller but your tax liability is less than $7500 you will need to make up the difference when you file your tax return since it is still a tax credit against tax liability, not a rebate. Of course, as noted, elsewhere, the bill has not yet been passed so that could change.

 

[Badger_Prof]

As I read it, the “taxpayer” can assign their credit. If the taxpayer assigns their credit to Ford, Ford has enough tax liability to take the whole $7500.00 in credit.

Interesting read. That could make a difference.

 

[Draconfier]

As I read it, the “taxpayer” can assign their credit. If the taxpayer assigns their credit to Ford, Ford has enough tax liability to take the whole $7500.00 in credit.

No, there is no longer a tax liability qualification under this new bill, just an AGI or Adjusted Gross Income limitation and the MSRP and whether or not it gets more than the $7.5k. Based off of where and who manufacturers it.

 

[Draconfier]

No, there is no longer a tax liability qualification under this new bill, just an AGI or Adjusted Gross Income limitation and the MSRP and whether or not it gets more than the $7.5k. Based off of where and who manufacturers it.

If you didn't qualify for it under those limitations you most likely would end up owing them back on your taxes as a penalty....I'm sure you have to sign something stating your eligibility for the credit when you sign it over to the purchase price of the vehicle.

 

[kennethjk]

After a very quick read it seems as though, assuming you meet modified adjusted gross income level (if over the MAGI there is a phased in reduction) and MRSP

1: you can elect to use the 7500 credit as part of your down payment and if doing so use your prior year MAGI instead of current year
2: leases may now be allowed
3: have to check how EPA and dept of energy classify MME

 

[Avelli]

The way I understand it, the Mach-E is an SUV. However the issue is if it is a car-based SUV or truck-based SUV. The difference, according to the IRS, is weight- a GVWR below 6000 lbs is a car, and a GVWR above 6000 lbs is a truck.

Can Ford add 30 lbs to tip the scales? We shall see....

As for the tax credit implications, you can "create" a tax burden if you have a traditional 401k, by converting it to a Roth 401k. You will owe, get back what you owe, and in the end have benefitted from converting to a Roth option.

 

[kennethjk]

The way I understand it, the Mach-E is an SUV. However the issue is if it is a car-based SUV or truck-based SUV. The difference, according to the IRS, is weight- a GVWR below 6000 lbs is a car, and a GVWR above 6000 lbs is a truck.

Can Ford add 30 lbs to tip the scales? We shall see....

As for the tax credit implications, you can "create" a tax burden if you have a traditional 401k, by converting it to a Roth 401k. You will owe, get back what you owe, and in the end have benefitted from converting to a Roth option.

EPA seems to classify MME as a small station wagon compared to the Porsche Macan which is an SUV. Basically same dimensions

credit can be taken as a down payment at purchase if you so desire
lit seems to apply to leases also

 

[Draconfier]

The way I understand it, the Mach-E is an SUV. However the issue is if it is a car-based SUV or truck-based SUV. The difference, according to the IRS, is weight- a GVWR below 6000 lbs is a car, and a GVWR above 6000 lbs is a truck.

Can Ford add 30 lbs to tip the scales? We shall see....

As for the tax credit implications, you can "create" a tax burden if you have a traditional 401k, by converting it to a Roth 401k. You will owe, get back what you owe, and in the end have benefitted from converting to a Roth option.

There is no verbiage in this bill about tax liability. Its all based off your previous years reported Modified Adjusted Gross Income.

 

[kennethjk]

Using MSRP is pretty stupid because in normal times all sorts of discounts are available so MSRP is almost meaningless

 

[kennethjk]

There is no verbiage in this bill about tax liability. Its all based off your previous years reported Adjusted Based Income.

I believe it is only based on last years Modified AGI if you elect to take the 7500 as a credit at closing, which most people will do.

not based on tax liability as you say

but still has to go thru reconciliation with the senate version.

 

[yngwenli]

The way I understand it, the Mach-E is an SUV. However the issue is if it is a car-based SUV or truck-based SUV. The difference, according to the IRS, is weight- a GVWR below 6000 lbs is a car, and a GVWR above 6000 lbs is a truck.

Can Ford add 30 lbs to tip the scales? We shall see....

As for the tax credit implications, you can "create" a tax burden if you have a traditional 401k, by converting it to a Roth 401k. You will owe, get back what you owe, and in the end have benefitted from converting to a Roth option.

The model Y according to this website is only ~4000 pounds.

https://weightofstuff.com/how-much-does-a-tesla-weigh/


I still think the classification from the epa was based on what they had/started with which was a car based EV platform that was heavily changed to be an SUV.

The Macan was based on the Audi Q5 (SUV) so that's why it's probably listed as an SUV.

I doubt anyone honestly has to worry.

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