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 !

[ChasingCoral]

Wasn't the 2022 MY MME classified as "Small SUV" ??

That is debatable. The Pontiac Aztec was/is classified as an SUV and the "stance" is quite similar IMO.

The CyberTruck looks like the love child of a Pontiac Aztec and a door wedge. Does that make it an SUV or furniture?

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[Dadams]

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

Missed that sorry.

 

[ChasingCoral]

Okay - I feel better. Thanks for the clarification ?

The rear horse shoe. Never in my life have I considered the rear jump seats two separate rows, I can see the argument. But I would not myself say those are two rows of seats.
I drove a ‘95 Caprice wagon with the awful reverse flow LT1 motor and before that we had a ‘83 iirc LTD with the rear seats. God I loved those cars.

 

[Mach-Lee]

Except ground clearance is irrelevant. Tesla Model Y Long Range 7 seat: $80,000 limit. Tesla Model Y Long Range 5 seat: $55,000. Same car, one extra row of seats.

This is also covered in 49 CFR 523.5(a)(5)(ii) https://www.ecfr.gov/current/title-49/subtitle-B/chapter-V/part-523#p-523.5(a)(5)(ii)

Adding the 3rd row allows the Model Y to qualify with the 523.5(a) option.

 

[RickMachE]

The problem isn't Americans' preference for taller/larger vehicle, the problem is lawmaker's dumb policies. An arbitrary MSRP cutoff and an arbitrary vehicle type classification for such a huge tax credit is an irresponsible way to govern. ESPECIALLY making it all-or-nothing across an arbitrary price point. These types of things should always be done on a sliding scale (like say, a $200 reduction in the credit for every $1000 in MSRP over $50k, regardless of vehicle type). That way people only lose a little of the credit when they're barely over the threshold.

There are a vast number of IRS regulations that don't phase in or out. This is only one of them.

 

[RickMachE]

If I run my VIN in the NHTSA VIN Decoder, body type comes back as an SUV.

And the IRS will say "so what, we don't care how the NHTSA classifies it".

 

[RickMachE]

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

This was published 12/29/22. That's today.

 

[DevinsHorsey]

This makes sitting at the port for over two weeks really, really sting.

EDIT: Also, having a '23 Premium SR RWD with White Paint (A $795 option) sting even more. If the wording is true, without destination, I am at $55,770

 

[Marley970]

Maybe good news? I feel everyone's pain that information keeps changing. This was my dealer's response today after I tried to see if I could purchase the car now before it arrives: "Unfortunately, we can't finalize the Mach-E until it arrives. Good news, it looks like it has been extended to March (see attached)"

 

[Kamuelaflyer]

This is also covered in 49 CFR 523.5(a)(5)(ii) https://www.ecfr.gov/current/title-49/subtitle-B/chapter-V/part-523#p-523.5(a)(5)(ii)

Adding the 3rd row allows the Model Y to qualify with the 523.5(a) option.

And the Corsair vs the escape?

 

[MachKet]

Maybe good news? I feel everyone's pain that information keeps changing. This was my dealer's response today after I tried to see if I could purchase the car now before it arrives: "Unfortunately, we can't finalize the Mach-E until it arrives. Good news, it looks like it has been extended to March (see attached)"

you are missing the point of the last sentences of #1

 

[Regulus7]

The average EV buyer is in the top 5% of the income pyramid. Stripping away incentives from this group is not going to matter that much as a large proportion has already bought a BEV or PHEV and so if we all re-up in another 3-4 years we are no longer “New EV” buyers. Hence the only way to really foster adoption is to target lower prices for BEVs which is what you see in CHINA. The average BEV in China has a 40KWh battery and is a small car. Of course US legacy manufacturers do not want to make a sub $20,000 EV so here we are. Income limits means at the margin higher income people without an EV now and who may have considered an EV are less likely to be new buyers. Meanwhile middle income buyers will find very few new EVs that qualify for the full $7500 so I think that really just leaves the lower segment that could see growth in sales in 2023. Cars like the Bolt could be the big sellers next year while the MME will likely sell fewer units than in 2022

 

[DevinsHorsey]

Maybe good news? I feel everyone's pain that information keeps changing. This was my dealer's response today after I tried to see if I could purchase the car now before it arrives: "Unfortunately, we can't finalize the Mach-E until it arrives. Good news, it looks like it has been extended to March (see attached)"

I mean... in that they even said that the Federal Govt. had not confirmed their decision, meaning most likely the final decision was that it is not an SUV to them.

 

[Gloff]

An Escape is a SUV because of the ground clearance and approach/departure angles.

Here are the requirements in 49 CFR 523.5(b)(2): https://www.ecfr.gov/current/title-49/subtitle-B/chapter-V/part-523#p-523.5(b)(2)

Needs 4 out of these 5 to be a SUV:
(i) Approach angle of not less than 28 degrees.
(ii) Breakover angle of not less than 14 degrees.
(iii) Departure angle of not less than 20 degrees.
(iv) Running clearance of not less than 20 centimeters.
(v) Front and rear axle clearances of not less than 18 centimeters each.

I've previously calculated the Mach-E angles:

Seems like the Mach-E only qualifies with the breakover and departure angles (2/5).

Fascinating.
Corsair must have less approach or departure, as the ground clearance is the same as the Escape.
7 Seater Model Ys qualify because they have three rows.

Very interesting, thank you for the clarification.

 

[Mach-Lee]

And the Corsair vs the escape?

Not sure but my guess is the Corsair has a slightly lower ground clearance that busted one of the requirements. In the photos it looks a little lower.

EDIT: The Corsair is 2.3 inches shorter than the Escape, which supports the suspension being lowered compared to the Escape.

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