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

[Griff]

We're supposed to receive delivery of a 2021 ER AWD ($56k MSRP) in December. I'm trying to follow everything that has been mentioned but struggling to parse the details and what's fact vs fiction vs speculation.

Will I be eligible for the $7,500 tax credit? If not, is there a way I can get there? Switching to Rt1 or RWD to get MSRP below $56k, or switch to take delivery in 2022? I'm not sure how to optimize this -- any advice is much appreciated.

Sponsored

 

[timbop]

t's when you order the vehicle, not when you receive it.

NO. What matters is the date when you take possession.

 

[Larry Paul]

NO. What matters is the date when you take possession.

Agreed...the order date is NOT relevant!

 

[MachMachWhoThere]

Haven’t read this full thread, so perhaps this has already been discussed, but I believe the Senate version (last I saw) had an $80K MSRP cap regardless of vehicle type. As long as the Senate holds that path (which would be so much easier to implement because it isn’t subjective), hopefully the $55k MSRP cap evaporates when the bills are reconciled.

Like many of you, I’m watching closely. Got a GT that was scheduled for production 10/18, but with no evidence anything has actually happened. Could literally be a photo finish for me.

 

[RickMachE]

It's when you order the vehicle, not when you receive it.

Actually, it's the opposite.

 

[RickMachE]

We're supposed to receive delivery of a 2021 ER AWD ($56k MSRP) in December. I'm trying to follow everything that has been mentioned but struggling to parse the details and what's fact vs fiction vs speculation.

Will I be eligible for the $7,500 tax credit? If not, is there a way I can get there? Switching to Rt1 or RWD to get MSRP below $56k, or switch to take delivery in 2022? I'm not sure how to optimize this -- any advice is much appreciated.

There is a lot of speculation, and not much fact.

The $7,500 existing tax credit will be in effect until 12/31/21 or until the new law takes effect, should it ever pass.

Stop focusing on the MSRP, many are making a statement that is not fact, and is not likely to happen.

Once you get closer to delivery, if the new law has been passed, you'll know if it's better, or worse, for you. If delivery is going to happen at the very end of the year, you could bump it to 2022 if that was a better tax credit.

 

[gatechmet]

I recommend calling your local rep and voicing your concerns (especially if they have a D next to their name and might actually have some influence). I did. The more they hear the better the odds are they take it into account.

 

[Nikos]

I was thinking the same thing.

Wonder if Ford ends up tweaking the price slightly to keep the most popular option just under the $55,000 to be able to us the credit as a selling feature. Trade a bit of margin to get the higher volume that the credit will bring them.

We all going to get the $7500 tax credit.
The additional tax credits maybe in question. I have reserved an F-150 Lightning also. Not the lower trim but I know it will push the final price just a tod above $80000.
I will be getting the $7500 credit but not the $12500. Remember also that Ford may list the vehicle pricing which will include the tax credit and price it below the $60000 mark.
Here is the rub: no credit for the Tesla models S & X, Lucid Air, Hummer truck, EQS, Taycan and higher trim EV vehicles. Unfortunately when you purchase higher priced EVs the new infrastructure bill does away with affluent people needing the tax break. It is also unfortunate that in the begining of introducing EVs to the public those affluent people were the ones who could afford them. The playing field and game rules for owning an EV have changed.
Tesla is the game changer from the beginning. Tesla and Ford and other legacy manufacturers can not make EVs quickly enough to satisfy the masses. Infrastructure Bill is for everyone to be able to afford an EV at affordable prices.
They may be few more treats to this bill after all. Patience.

 

[Billyk24]

Battery supply limits and actual chargers being located in bare areas is another issue needed to be addressed. Not hopeful Goverment will install modern high speed chargers (150 kWh+) off the beaten path and in rural areas.

 

[kennethjk]

We all going to get the $7500 tax credit.
The additional tax credits maybe in question. I have reserved an F-150 Lightning also. Not the lower trim but I know it will push the final price just a tod above $80000.
I will be getting the $7500 credit but not the $12500. Remember also that Ford may list the vehicle pricing which will include the tax credit and price it below the $60000 mark.
Here is the rub: no credit for the Tesla models S & X, Lucid Air, Hummer truck, EQS, Taycan and higher trim EV vehicles. Unfortunately when you purchase higher priced EVs the new infrastructure bill does away with affluent people needing the tax break. It is also unfortunate that in the begining of introducing EVs to the public those affluent people were the ones who could afford them. The playing field and game rules for owning an EV have changed.
Tesla is the game changer from the beginning. Tesla and Ford and other legacy manufacturers can not make EVs quickly enough to satisfy the masses. Infrastructure Bill is for everyone to be able to afford an EV at affordable prices.
They may be few more treats to this bill after all. Patience.

They are going to use MSRP, the credit cannot be used to reduce it

so unless Ford lowers the actual MSRP to below 80 on you care you could be out of luck

a lot has to happen before this bill is finalized and signed though

also Ford lobbyist are I am sure working right now to get classification changed

hopefully it works

 

[timbop]

Battery supply limits and actual chargers being located in bare areas is another issue needed to be addressed. Not hopeful Goverment will install modern high speed chargers (150 kWh+) off the beaten path and in rural areas.

In the 1930's there were enough politicians who cared enough to "do the right thing" to pass FDR's programs to electrify and connect telephone service to rural america - so there is certainly a precedent for it. The Eisenhower interstate system certainly netted huge returns in commerce for what seemed like a large outlay at the time.

Unfortunately I don't know that there are enough politicians available today with the courage and integrity to do what's best for the country instead of themselves.

 

[intoMME]

My CPA said I could take two EV tax credits this year. I hope that still holds true. I bought a MME for me and a Leaf for my daughter.

 

[kennethjk]

My CPA said I could take two EV tax credits this year. I hope that still holds true. I bought a MME for me and a Leaf for my daughter.

Yes multiple cars this year is ok
If bill passes and doesn’t change starting next years it’s one car a year

 

[Indy Mike]

Just posted a few minutes ago on CNBC.
https://www.cnbc.com/2021/11/03/dem...tax-breaks-for-evs-that-cost-up-to-80000.html
The newly revised plan from the House of Representatives Ways and Means Committee RULES COMMITTEE PRINT 117–18 TEXT OF H.R. 5376, BUILD BACK BETTER ACT

$4000 base amount
$3500 amount for vehicles with greater than 40kwh battery capacity and less than 2.5 gallons gas tank
$4500 for final domestic assembly (vehicle made in US by Union representative workers)
$500 for domestic content assembly (battery produced in US)

Vehicle cost not to exceed $80,000 for Van's, SUVs, Pickup trucks. $55,000 for other vehicles.

Income thresholds of $500k married filing joint, $375k head of household, or $250k filing single.

Not more than 1 credit allowed per tax year.

Credit can be automatically assigned to the seller (must be registered) towards purchase of vehicle.

Date of effect: December 31, 2021 or when the Bill takes effect. (Whichever happens last)

Verbiage of credits for Used Evs also included in bill, 2 & 3 wheeled vehicles, charging station credits, commercial usage, etc.

The Proposed bill extends the EV credit system for another 10 years and eliminates the 200,000 vehicle restriction.

The full bill is available here. Pg 1480-1540

https://rules.house.gov/sites/democrats.rules.house.gov/files/BILLS-117HR5376RH-RCP117-18.pdf

Our MME will or will not qualify for final assembly in the US by union worker? I thought they were made in Mexico.

 

[Nikos]

Our MME will or will not qualify for final assembly in the US by union worker? I thought they were made in Mexico.

Yes. They are made in Mexico City.
Still qualifies for a $7500 credit.
If you order another BEV after the first of the year, such as the F-150 Lightning which is made in Michigan by union workers and keep the list price under $80000, you going to get $12500 in tax credits.
Now the bill passed the Congress. It has to go thru the Senate, modified and send back to the Congress for final passage.
The bill has more challenges ahead.
I rather not speculate of what the final bill would look like judging from what went thru.
Interesting times we live in.!!!!!

Sponsored