2022 Mach-E eligibility for federal tax credit

[Debangor]

I may be trading my 2021 Mach-E Premium extended battery in for a 2022 GT. I am confused about whether I am eligible for the federal tax credit. On the Ford website, it is listed as a small station wagon. From what I understand, the tax credit is for SUV's under $80,000 and other vehicles under $55,000. If it is considered a small station wagon and not an SUV, then it would not be eligible with a sticker price of $66,000+. Does anyone know what the federal government considers it as, a station wagon or SUV?

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[summerlinLV]

I may be trading my 2021 Mach-E Premium extended battery in for a 2022 GT. I am confused about whether I am eligible for the federal tax credit. On the Ford website, it is listed as a small station wagon. From what I understand, the tax credit is for SUV's under $80,000 and other vehicles under $55,000. If it is considered a small station wagon and not an SUV, then it would not be eligible with a sticker price of $66,000+. Does anyone know what the federal government considers it as, a station wagon or SUV?

My 21 showed it is a small station wagon, while my 22 showed it as a small SUV.

 

[RickMachE]

You can get the full tax credit if you do this within calendar year 2022. In 2023, it might be 50% of the credit due to battery composition /sourcing.

For 2022, none of the classifications matter.

 

[4sallypat]

My 21 showed it is a small station wagon, while my 22 showed it as a small SUV.

Excellent!

That's what I needed to know - SMALL SUV means up to $80K MSRP limit for 2023 tax credit.

And since the first few months of 2023 with the battery sourcing suspended, I can claim the full $7500 tax credit on my incoming '23 MME...

 

[yngwenli]

And since the first few months of 2023 with the battery sourcing suspended, I can claim the full $7500 tax credit on my incoming '23 MME...

So everyone qualifies for $3750 from the battery components from Jan - March while they figure things out?

 

[generaltso]

So everyone qualifies for $3750 from the battery components from Jan - March while they figure things out?

Everyone qualifies for $7500 until secretary guidance on the battery component and mineral requirements is published, which is planned for March. (assuming you have enough tax liability, don't have an income over the limit, and are purchasing a car that was made in North America and is below the MSRP limit).

 

[yngwenli]

Everyone qualifies for $7500 until secretary guidance on the battery component and mineral requirements is published, which is planned for March. (assuming you have enough tax liability, don't have an income over the limit, and are purchasing a car that was made in North America and is below the MSRP limit).

I thought the foreign makers (Kia/Hyundai) doesn't get the $3750 made in North America bit?

 

[generaltso]

I thought the foreign makers (Kia/Hyundai) doesn't get the $3750 made in North America bit?

Cars made outside of North America don't qualify for the tax credit at all.

 

[4sallypat]

Can the IRS change the classification of the MME from Small SUV to station wagon or sedan for the new tax law ?

I keep hearing that a '23 MME is a small SUV classification but may get changed by the IRS ?

Is that a rumor or speculation ?

I read online that the IIHS uses weight, size, cargo capacity, etc to classify vehicles - IIHS-HLDI Guide to SUV ?

 

[RickMachE]

Can the IRS change the classification of the MME from Small SUV to station wagon or sedan for the new tax law ?

I keep hearing that a '23 MME is a small SUV classification but may get changed by the IRS ?

Is that a rumor or speculation ?

I read online that the IIHS uses weight, size, cargo capacity, etc to classify vehicles - IIHS-HLDI Guide to SUV ?

No, they won't do that.

Just an observation - you seem to feel fine about it, then question it in another post, then feel fine, ... I'd suggest to stop reading.

 

[max8176]

Just checking so if I can find something before the end of the year I am still qualify, for sure, the full 7.5k credit? My income should qualify.

 

[generaltso]

Just checking so if I can find something before the end of the year I am still qualify, for sure, the full 7.5k credit? My income should qualify.

If your income qualifies, you should be good until at least March.

 

[JJCritch]

Ok, you bring up income limit. I ordered my MME in May of 2021, it was built December 2021 as a 2021 model, I took delivery in early March 2022.

The inflation reduction act went into effect in Aug 2022 correct?
I am over the income limit for 2022. Does that mean I'm out the $7500 credit I thought I would get on my 2022 taxes when I bought the car?

 

[RickMachE]

Ok, you bring up income limit. I ordered my MME in May of 2021, it was built December 2021 as a 2021 model, I took delivery in early March 2022.

The inflation reduction act went into effect in Aug 2022 correct?
I am over the income limit for 2022. Does that mean I'm out the $7500 credit I thought I would get on my 2022 taxes when I bought the car?

There is no income limit in 2022.

 

[devmach-e]

Ok, you bring up income limit. I ordered my MME in May of 2021, it was built December 2021 as a 2021 model, I took delivery in early March 2022.

The inflation reduction act went into effect in Aug 2022 correct?
I am over the income limit for 2022. Does that mean I'm out the $7500 credit I thought I would get on my 2022 taxes when I bought the car?

Income limits don't apply for cars purchased in 2022. Just as the MSRP caps, battery assembly requirements, and battery minerals content requirements don't matter for cars purchased in 2022.

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