Thoughts about the $7500 rebate

[JerryL]

I'm feeling that Ford will hold back some deliveries until the 4th quarter. Since deliveries are running late, they will be able to go through the 200k threshold in the first quarter of 2023 allowing the full federal rebate of $7500 until 4/1/23. It makes sense to me. It will make customers happy because they will not be losing 1/2 of the rebate.

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[kdonnel]

I don't think Ford is thinking about anything other than delivering as many cars as quickly as they can.

 

[generaltso]

I know it’s semantics, but it’s a tax credit, not a rebate. They’re not the same.

 

[AKgrampy]

If you are one of the 200,000 then you get the rebate whether it is hit during Q3 or Q4 or Q1 2023. I guess they could be so sneaky that they try to hit 200,000 on the first day of a quarter so that the $7,500 lasts for 6 month after the 200,000 is attained. I agree with previous poster though - sell them as fast as they get them done.

 

[Reign of Ravens]

This assumes a level of fine control and prediction during turbulent times. Given what we've seen, I don't think Ford would be able to pull this off even if they wanted to. I also don't think Ford would want to trade the happiness about the tax rebate (which most people won't attribute to Ford) for the misery of making customers wait even longer for their orders.

 

[Glen Boise]

As another poster has noted, the $7500 is a tax credit, not a rebate. It only helps if you owe the IRS money when you file your income taxes. It did not help me as I usually get a refund. I was aware of this, having done my homework. A rebate would have been paid no matter your tax situation.

 

[generaltso]

It only helps if you owe the IRS money when you file your income taxes. It did not help me as I usually get a refund.

Just to clarify, it doesn’t matter if you owe or get a refund at the end of the year. It just matters that you have at least $7500 of tax liability to take advantage of the full credit.

 

[rcechinel]

I'm feeling that Ford will hold back some deliveries until the 4th quarter. Since deliveries are running late, they will be able to go through the 200k threshold in the first quarter of 2023 allowing the full federal rebate of $7500 until 4/1/23. It makes sense to me. It will make customers happy because they will not be losing 1/2 of the rebate.

No offense intended, but I think you are completely wrong. Ford was destroyed by wall street analysts on their last quarter earnings call because of low delivery and low profitability. Their number 1 priority is to do better financially so their stock doesn't get hammered again.
This triggered Ford only selling GTs and Selects, allegedly more profitable. And now, people ordering GTs in 2022, including March, already have production dates and some have their cars already. Meanwhile, people with Premium orders from September still don't have a production date yet.
Ford doesn't care about consumers, they have showed time and time again. An absolutely terrible company. Our tax credit is irrelevant to them because thay already have way more orders than the 200k. It's a non-factor. If they coupd blow it this quarter, they would.

 

[Illinibird]

We received the entire $7500 because our tax liability was over that amount. We went in on a Monday and the refund posted into our checking account the following week! We have never had such a quick tax refund before and it was sure nice to see the $7500 show up.

 

[Garbone]

Still waiting on the IRS for our refund. Thinking of getting another Select so I can claim it again next year. Have to decide to order it soon.

 

[mmap]

My guess is that Ford is trying to line up MY23 with the decreasing credit so that they can make price adjustments. They don't want to appear to change the price directly in response to the credit (it's bad press for them and for legislators who they still want to pass new credits). So dropping the price at the model year will avoid a negative perception.

I think that's why they stopped Premium orders, because they don't want to still be shipping MY22 cars without the full credit.

 

[Kevin P]

As another poster has noted, the $7500 is a tax credit, not a rebate. It only helps if you owe the IRS money when you file your income taxes. It did not help me as I usually get a refund. I was aware of this, having done my homework. A rebate would have been paid no matter your tax situation.

That is not how it works. It doesn't matter whether you owe or not when filing taxes, it only matter how much tax you had to pay FOR THE YEAR. Almost everyone who can afford a Mach E paid more than $7500 in Federal taxes for the year.

 

[Glen Boise]

That is not how it works. It doesn't matter whether you owe or not when filing taxes, it only matter how much tax you had to pay FOR THE YEAR. Almost everyone who can afford a Mach E paid more than $7500 in Federal taxes for the year.

You are correct. I went back and reviewed my 2021 tax return. It clearly gave me a tax credit for my purchase of an EV last year. The tax credit was reduced to reflect that I did not owe $7500 in taxes despite other changes to my income. It meant I received a bigger refund this year. Next year will be another matter.

 

[DarkStang]

As I understand it, even if Ford hits 200k vehicles this year, we still get the full $7500 for the next 2 quarters after they exceed the limit. My order would just be sneaking into the end of 2022 (hopefully so I can claim on 2022 taxes right away), but if not, I’m sure it will be within the next 2 quarters of 2023.

But, does anyone know how they track your “place in line”? When you take delivery on your car, do you get some type of dated certificate or paperwork that shows the car is eligible, and once you have that, you are guaranteed to be able to claim it when you do your taxes later in the year? Or is this going to be an issue if I get my car during the grace period, but by tax season 2023 (2024 really) the credit is gone?

 

[Garbone]

As I understand it, even if Ford hits 200k vehicles this year, we still get the full $7500 for the next 2 quarters after they exceed the limit. My order would just be sneaking into the end of 2022 (hopefully so I can claim on 2022 taxes right away), but if not, I’m sure it will be within the next 2 quarters of 2023.

But, does anyone know how they track your “place in line”? When you take delivery on your car, do you get some type of dated certificate or paperwork that shows the car is eligible, and once you have that, you are guaranteed to be able to claim it when you do your taxes later in the year? Or is this going to be an issue if I get my car during the grace period, but by tax season 2023 (2024 really) the credit is gone?

You just fill out a form on the tax return with date of purchase and VIN. I did my own taxes and had to look for the form in Turbo Tax but it was fairly easy. No real extra paperwork was required.

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