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 !

[DonnieJ]

Just imagine if you would have ordered an option that cost around $100. That would in effect cost you $7,500. CRAZY!!

Lol

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[SWO]

People are saying it may be that GVWR of greater than 6,000 lbs. The premium AWD misses by 70 lbs.

The Escale PHEV GVWR is 500-1000lbs less than a Mach E. That can't be the sole deciding factor.

 

[Yeskamil]

Agreed!

Escape PHEV weighs less, has less cubic feet of storage, etc...

MME should be classified as "mini or small SUV / CUV"....

No tow rating for the US MachE probably is the reason.

 

[johnny_golf]

The people that build it call it an SUV.

Not that it matters to the IRS apparently.

Hopefully they will revise these “lines“ to be phase outs rather than cutoffs.

The whole thing is stupid. Seems the law was designed to give out as few credits as possible.

The current law was fair and just for everyone. As it has been rewritten, it's become a disincentive for those taxpayers at higher income levels who want something more than a base model. You can verify that by just reading this forum.

In February, I ordered a 22 Select AWD with the comfort and technology package. The ETA at time of order was 20 weeks. In August, I received the email from Ford saying that my 22 was going to be converted to a 23 Select with the deletion of comfort and technology, but with the private offer. My car was built the week of 11/7 with an original delivery date of 12/6. The car is still in transit.

So I was looking for an upgrade before the end of the year, primarily to get the tax credit and get the options that I lost through the conversion. 2 weeks ago, I found a 22 CR1, same dealer, different store. MSRP before destination 55,390. They wanted 5000 over sticker. They ended up trading that vehicle between the two stores for the one that I have in transit, and I got the CR1 for MSRP, no markup. So I'm happy that I got one before the 23 base price increase, with the full tax credit and it has the extended battery and many of the options that my original Mach-E lost in the conversion to 23 model year. This car would not qualify for the tax credit under the 23 rules, as it is $390 over the limit.

Now apparently the 23 Select that is in transit gets a 2 month reprieve for the full tax credit because they haven't defined the specifics of the battery portion of the tax credit. That vehicle is well under the 55K IRS limit, so it turns out that it has favorable status after all.

My point is, you can do all of your due diligence and try to make an informed decision before purchasing an EV, but you're at the mercy of the manufacturer and the lawmakers to determine what you're actually going to get and how much it's going to cost you.

 

[s7davis]

Think of a positive now Ford will be forced to start lowering prices below the $55k MSRP if they want to continue getting the rebate/credits. Or they will not be selling as many cars as they normally were. Of course this will not deter the consumers who do not need to count on the tax credit, but does help the average buyer with the price of car. Also remember at first it is a tax credit and not a point of sale rebate quite yet.

 

[new to mach-e]

Silly question, purchasing for qualifying Mach-e next month would have to be claimed under the 2023 tax return, right? Yeah I know it’s being purchased in 2023, but thing seem to have been fluid lately with recent extensions etc. just checking…thanks

 

[HondaRacer]

Silly question, purchasing for qualifying Mach-e next month would have to be claimed under the 2023 tax return, right? Yeah I know it’s being purchased in 2023, but thing seem to have been fluid lately with recent extensions etc. just checking…thanks

Correct. Any tax credit for purchase in January would apply to 2023 taxes (filed in 2024). Whether or not any qualification extension will eventually apply to the MME doesn’t change that.

 

[gryphon]

Think of a positive now Ford will be forced to start lowering prices below the $55k MSRP if they want to continue getting the rebate/credits. Or they will not be selling as many cars as they normally were. Of course this will not deter the consumers who do not need to count on the tax credit, but does help the average buyer with the price of car. Also remember at first it is a tax credit and not a point of sale rebate quite yet.

The flip side to this positive is that everyone's residual resale value will take a hit IMO. If dealerships are forced to cut the price of new cars to compensate for a large number of buyers now ineligible for any credit, then naturally that downward pressure will be felt on the used car market for this model as well.

 

[gryphon]

This entire landscape is a hot mess. Now Sen. Manchin, as Chairman of the Senate Energy and Natural Resources Committee, is urging Treasury to suspend implementation of the new 30D and 45W provisions until further guidance can be released. Meanwhile, we as consumers, need to make decisions, that have significant financial implications, with imperfect and uncertain information. Added to this is the arbitrary time pressure of making a decision by close of business on 12/31.

Good luck everyone, I'm now firmly sitting this one out until the dust settles.

 

[GatorJ_MME]

Thanks to the OP for pointing this out. I'm still waiting for my production date (ordered 10/12), so have requested the rear bumper protection option be removed from my order to keep my '23 Premium RWD SR under the $55k limit. Still don't know if the car will qualify for the credit, but this at least doesn't put me out of the running....

 

[s7davis]

This entire landscape is a hot mess. Now Sen. Manchin, as Chairman of the Senate Energy and Natural Resources Committee, is urging Treasury to suspend implementation of the new 30D and 45W provisions until further guidance can be released. Meanwhile, we as consumers, need to make decisions, that have significant financial implications, with imperfect and uncertain information. Added to this is the arbitrary time pressure of making a decision by close of business on 12/31.

Good luck everyone, I'm now firmly sitting this one out until the dust settles.

I do not want to go political but will just say this as my own opinion. If he hadn't stopped the previous BILL from passing he would not be in this mess. This is the mess he created with this dumb IRA Bill and now he got mad because the IRS (another gov. agency) allowed companies to use the loophole of leasing cars so people can get the tax credit. So he wants to stop this implementation because he was hoping that the money would stay in the Treasury for at least 2 years min. before the tax rebates will be given out as the battery resource can be started in NA.
He was trying so hard to stonewall the previous BILL and now he is back against a wall with not much he can do about it as the IRS can only implement rules and regulations that are stipulated in the BILL. And, if no new rules on leased vehicles is stipulated in the BILL well that means it falls back on the previous rules for leased vehicles. So now Munchin wants to stop it as this was not the intent of this BILL but its a Bill he signed off on no matter what so it falls back on him as this was brought to the table by him and now it is backfiring he is mad and trying to stop it now.

 

[Logal727]

Hyundai and Kia did not do any price adjustments….when they lost the credit.

I think they were already priced reasonably

 

[Mach1E]

I do not want to go political but will just say this as my own opinion. If he hadn't stopped the previous BILL from passing he would not be in this mess. This is the mess he created with this dumb IRA Bill and now he got mad because the IRS (another gov. agency) allowed companies to use the loophole of leasing cars so people can get the tax credit. So he wants to stop this implementation because he was hoping that the money would stay in the Treasury for at least 2 years min. before the tax rebates will be given out as the battery resource can be started in NA.
He was trying so hard to stonewall the previous BILL and now he is back against a wall with not much he can do about it as the IRS can only implement rules and regulations that are stipulated in the BILL. And, if no new rules on leased vehicles is stipulated in the BILL well that means it falls back on the previous rules for leased vehicles. So now Munchin wants to stop it as this was not the intent of this BILL but its a Bill he signed off on no matter what so it falls back on him as this was brought to the table by him and now it is backfiring he is mad and trying to stop it now.

So he blocked a previous terrible bill, now it’s his fault they passed something worse?

It’s simpler than that. They’re all idiots and have no business passing laws that affect the tax code if they don’t understand the tax code.

Remember, these are the same idiots that decided two years ago that everyone in the country should get a check in the mail……. Except 17 year olds.

They also decided a decade ago that everyone in the country should get access to health insurance……. Except “kinda poor” people. They still haven’t fixed that one.

 

[DaveP]

Welp, was a good ride. MME is going to be a dead car after 2023, IMO.

Why? Tesla had had no tax credit for ages and continues to sell despite terrible build quality, and horrible service. It's an incentive, not a normal baked in savings anytime should count on that is available for a fraction of vehicles out there. I don't understand this logic at all.

 

[dmac1418]

Seems the law was designed to give out as few credits as possible.

It’s actually trying to encourage lower priced BEV vehicles which have largely been too expensive for the average American.

Yes, some people are now excluded , but on the whole the intent is good and will hopefully help drive overall EV adoption.

BEVs need to be cheaper for widespread adoption and in turn more chargers publicly available, etc.

It’s all cyclical.

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