2023 Mach-E priced over $55K & delivered in 2023 will not qualify for tax credit! Latest IRS ruling says Mach-E is a CAR - not SUV !

[Mach1E]

Kinda like if you make $150,000 in income versus $150,001 next year.

Yup.

This is what we call a “tax torpedo.” When $1 can cost you thousands.

It’s the result of morons in charge of writing the tax laws when they know nothing about how taxes work.

Sometimes they FIX them (usually years later after much protesting) sometimes not.

Example: ACA health insurance credits. Used to be a hard line for income. Then last year they fixed it to be a % of income sliding scale.

EVERY credit like this should be a sliding scale. Same with MSRP. A hard line cutoff is stupid.

Like many have pointed out a $100 option could cost $7500. Result? Less people will buy cars above that magic idiotic line. Less BEVs sold (if you can’t get the car with the options you want at a reasonable price). Worse for the environment.

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[snowdoggie]

So how come no one noticed this until this morning? did the IRS update the guidance / classification recently and it snuck under the radar? All the RT1/GT/and non base premiums are gonna get hosed

 

[dmac1418]

The income limit is AGI, so if your salary is $150,001 you can still get in with standard deduction (with room to spare).

Add in some deductions like 401k and IRA contributions and you have some nice breathing room.

 

[Dadams]

2023	Volkswagen ID.4	$55,000
2023	Volkswagen ID.4 Pro	$55,000
2023	Volkswagen ID.4 Pro S	$55,000
2023	Volkswagen ID.4 S	$55,000
2023	Volkswagen ID.4 AWD Pro	$80,000
2023	Volkswagen ID.4 AWD Pro S	$80,000

Aren't these all the same chassis? so shouldn't they all be the same?

 

[tdmeng]

I'm surprised Ford didn't protest this, they had to have known. Mach E is definitely more SUV than the MY

 

[phil]

So how come no one noticed this until this morning? did the IRS update the guidance / classification recently and it snuck under the radar? All the RT1/GT/and non base premiums are gonna get hosed

The IRS published the guidance this morning, and OP reported it here almost immediately. Our radar sees everything!

 

[tdmeng]

2023	Volkswagen ID.4	$55,000
2023	Volkswagen ID.4 Pro	$55,000
2023	Volkswagen ID.4 Pro S	$55,000
2023	Volkswagen ID.4 S	$55,000
2023	Volkswagen ID.4 AWD Pro	$80,000
2023	Volkswagen ID.4 AWD Pro S	$80,000

Aren't these all the same chassis? so shouldn't they all be the same?

Now I'm 100% sure the IRS is just making stuff up now....

 

[MachKet]

I'm surprised Ford didn't protest this, they had to have known. Mach E is definitely more SUV than the MY

You can bet they are on the phone with the IRS right now. This hurts ford in a huge way

 

[jesta715]

This is my car on order. Does it qualify for the 55k because base msrp is under 55k or does the destination charge push it over?

il probably cancel my order if it doesn’t qualify. Car isn’t worth this much $$ without the rebate.

 

[Rory]

Model Y 2-rows is classified as car, 3-rows as SUV.

 

[dmac1418]

This is my car on order. Does it qualify for the 55k because base msrp is under 55k or does the destination charge push it over?

il probably cancel my order if it doesn’t qualify. Car isn’t worth this much $$ without the rebate.

Yes, the guidance says it’s MSRP excluding destination & delivery fees.

 

[tdmeng]

Model Y 2-rows is classified as car, 3-rows as SUV.

Everyone is opting for the $3k 3rd row, and save $4.5k in rebates then.

 

[Mach-Lee]

2023	Volkswagen ID.4	$55,000
2023	Volkswagen ID.4 Pro	$55,000
2023	Volkswagen ID.4 Pro S	$55,000
2023	Volkswagen ID.4 S	$55,000
2023	Volkswagen ID.4 AWD Pro	$80,000
2023	Volkswagen ID.4 AWD Pro S	$80,000

Aren't these all the same chassis? so shouldn't they all be the same?

The rules in my last post say an SUV must have 4-wheel drive.

 

[snowdoggie]

This is my car on order. Does it qualify for the 55k because base msrp is under 55k or does the destination charge push it over?

il probably cancel my order if it doesn’t qualify. Car isn’t worth this much $$ without the rebate.

Your good, dest / delivery fee are excluded

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