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 !

[ArthurDOB]

Tax credits like this to promote development should be temporary. Like the original one that ended after 200k units from each manufacturer. Which made sense to encourage manufacturers to start developing EV models. Then the expectation was that it would build it's own momentum (which it did), and the natural market would take over from there if they proved viable.

Unfortunately this new bill destroyed that. It's now a permanent credit (well, 10 full years, but that's effectively permanent for this purpose). It's no longer an initial boost to get manufacturers onboard, it's an ongoing subsidy that will be factored into the cost structure now for another decade. Which means manufacturers will be manipulating their offerings to fit within the limits as much as they can. After the dust settles, we'll see a lot of manipulating of features to fit into a $54,999 price point (for cars, $79,999 for SUVs/trucks). And then probably a gap for the more fully-loaded cars at $65k+ that won't qualify.

It's government micromanagement at it's worst. But as was once famously said...

“The government you elect is the government you deserve.” -- Thomas Jefferson

Jefferson never said that. He is the man with almost more invented quotes than actual ones.

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[dbsb3233]

Jefferson never said that. He is the man with almost more invented quotes than actual ones.

Well whoever actually said it first, it's an apt one.

 

[Anthropod]

MSRP. Wonder if ford can use the private offer to lower overall MSRP?

 

[devmach-e]

MSRP. Wonder if ford can use the private offer to lower overall MSRP?

No.

 

[USGooner]

MSRP. Wonder if ford can use the private offer to lower overall MSRP?

I’m wondering that. I’m not sure if the dealer will honor the price of the 2022 that was damaged in transport. If they do I would be all set. If it’s the 2023 price, I’m not.

 

[Luke]

I was checking the other cars on that list, and the IRS has a strange logic. The Tesla model Y with 2 row seats is a car, the same model Y with 3 rows is an SUV.

Can I add a couple of seats in the trunk of the Mach-e and call it an SUV?

 

[jpinFLX]

After carefully reading the IRS information on the tax rebate, I went to my dealer this afternoon and dumped the "Rapid Red Metallic" paint and the "Interior Protection Package" from my 11/25 MME Premium, RWD, STD Range. I can live with a different, standard color and I can get the Protection Package items separately (although for more money), but I can't live with just missing the tax rebate by a few hundred dollars. I did really want the red color, though. Oh well. Next car!

I have to say also that I went into this on 11/25/22 understanding that there may not be any rebate at all if I take delivery in 2023 but crossing my fingers that there would be one, so I'm very happy that I could qualify for a rebate and only needed to make a minor adjustment to my order in order to do so.

Like others have mentioned, I am also quite surprised at how many people say that they are pulling the plug (pun intended) because of the IRS rules. I wonder how many of those plug-pullers did that because the MME they wanted became unaffordable, rather than because they were no longer getting a tax break. It seemed like the latter based on what I've read here.

I'm a Minnesota high school teacher and I gross about $86,000 a year. I understand that the cost of living in some parts of the country (talkin' 'bout you, Bay Area) makes people who gross $150,000+ and couples who gross $300,000+ have less buying power than it might seem to those of us who live in lower-cost areas. That's unfortunate and I agree there should be some consideration and a sliding scale, not a cliff. I would have been able to keep my red color!

But please remember that this law (and accompanying IRS rules) was designed to lower the cost of entry-level EVs for people who otherwise might not be able to afford them (that's me), not to give the relatively affluent/very affluent yet another tax break! If you fall into the latter category and this is why you are upset, your complaints are falling on deaf ears. I'm barely squeezing into a Premium and I'm happy to finally be able to afford a decent EV that isn't a tiny, ugly box on wheels and can begin the process of reducing my carbon footprint and start setting an example for my students.

I am with you on this. And while it may be a car or a SUV this is just another slap in the face to the upper middle class. I am in NY make a decent salary now I get:

• No EV tax credit on a premium Awd Sr (which has been produced since 11/4 but didn’t ship until 12/7)
• No childcare (or reduced) tax credit
• No mortgage interest deduction

Not to delve into politics but it is just another case of those in the middle who can use just a little break don’t get one, those lower do, those above don’t care.

I will take the car either way tax break or not, it is just another example where if you can get screwed out of something you pay into you will. And if Joe Machin’s name is anywhere near it you can bet it will screw the middle class.

 

[4sallypat]

I’m wondering that. I’m not sure if the dealer will honor the price of the 2022 that was damaged in transport. If they do I would be all set. If it’s the 2023 price, I’m not.

No, it goes off the Monroney window sticker.

Does not matter if you get a discount, pay ADM, etc..

My order was golden once the forum members cleared up the D&D fee that is not counted.

My MME is just $25 under the max.

I also get the $6K PCO, $2K state, $1K Ford Pass points....

 

[4sallypat]

After carefully reading the IRS information on the tax rebate, I went to my dealer this afternoon and dumped the "Rapid Red Metallic" paint and the "Interior Protection Package" from my 11/25 MME Premium, RWD, STD Range. I can live with a different, standard color and I can get the Protection Package items separately (although for more money), but I can't live with just missing the tax rebate by a few hundred dollars. I did really want the red color, though. Oh well. Next car!

I have to say also that I went into this on 11/25/22 understanding that there may not be any rebate at all if I take delivery in 2023 but crossing my fingers that there would be one, so I'm very happy that I could qualify for a rebate and only needed to make a minor adjustment to my order in order to do so.

Like others have mentioned, I am also quite surprised at how many people say that they are pulling the plug (pun intended) because of the IRS rules. I wonder how many of those plug-pullers did that because the MME they wanted became unaffordable, rather than because they were no longer getting a tax break. It seemed like the latter based on what I've read here.

I'm a Minnesota high school teacher and I gross about $86,000 a year. I understand that the cost of living in some parts of the country (talkin' 'bout you, Bay Area) makes people who gross $150,000+ and couples who gross $300,000+ have less buying power than it might seem to those of us who live in lower-cost areas. That's unfortunate and I agree there should be some consideration and a sliding scale, not a cliff. I would have been able to keep my red color!

But please remember that this law (and accompanying IRS rules) was designed to lower the cost of entry-level EVs for people who otherwise might not be able to afford them (that's me), not to give the relatively affluent/very affluent yet another tax break! If you fall into the latter category and this is why you are upset, your complaints are falling on deaf ears. I'm barely squeezing into a Premium and I'm happy to finally be able to afford a decent EV that isn't a tiny, ugly box on wheels and can begin the process of reducing my carbon footprint and start setting an example for my students.

Congrats!

You are very lucky to be able to make a slight change on your order before it went into production and qualify for the $55K max.

Now you just have to pray it arrives before March when IRS makes a ruling on the battery.....

So which color did you choose ?

 

[ArthurDOB]

Congrats!

You are very lucky to be able to make a slight change on your order before it went into production and qualify for the $55K max.

Now you just have to pray it arrives before March when IRS makes a ruling on the battery.....

So which color did you choose ?

Grabber Blue. I don't see it mentioned very often, but I want a color that jumps out. So tired of black, Gray, white, silver, Blue-gray,etc., etc. It was my second choice from the beginning. Now it's my first choice. Will save me thousands (I hope), so I'm good with it!

 

[gryphon]

After carefully reading the IRS information on the tax rebate, I went to my dealer this afternoon and dumped the "Rapid Red Metallic" paint and the "Interior Protection Package" from my 11/25 MME Premium, RWD, STD Range. I can live with a different, standard color and I can get the Protection Package items separately (although for more money), but I can't live with just missing the tax rebate by a few hundred dollars. I did really want the red color, though. Oh well. Next car!

I have to say also that I went into this on 11/25/22 understanding that there may not be any rebate at all if I take delivery in 2023 but crossing my fingers that there would be one, so I'm very happy that I could qualify for a rebate and only needed to make a minor adjustment to my order in order to do so.

Like others have mentioned, I am also quite surprised at how many people say that they are pulling the plug (pun intended) because of the IRS rules. I wonder how many of those plug-pullers did that because the MME they wanted became unaffordable, rather than because they were no longer getting a tax break. It seemed like the latter based on what I've read here.

I'm a Minnesota high school teacher and I gross about $86,000 a year. I understand that the cost of living in some parts of the country (talkin' 'bout you, Bay Area) makes people who gross $150,000+ and couples who gross $300,000+ have less buying power than it might seem to those of us who live in lower-cost areas. That's unfortunate and I agree there should be some consideration and a sliding scale, not a cliff. I would have been able to keep my red color!

But please remember that this law (and accompanying IRS rules) was designed to lower the cost of entry-level EVs for people who otherwise might not be able to afford them (that's me), not to give the relatively affluent/very affluent yet another tax break! If you fall into the latter category and this is why you are upset, your complaints are falling on deaf ears. I'm barely squeezing into a Premium and I'm happy to finally be able to afford a decent EV that isn't a tiny, ugly box on wheels and can begin the process of reducing my carbon footprint and start setting an example for my students.

Follow-up question: what if you had been unable to change those two options on your order, what then?

 

[Rory]

Jefferson never said that. He is the man with almost more invented quotes than actual ones.

"I have the most quotes incorrectly attributed to me." -- Albert Einstein.

 

[dbsb3233]

I wouldn't go so far as to say those $55k+ models will go away. But we agree that US demand for those will shrink and shift more to the sub-$55k trims. (That is, assuming Ford can meet the battery requirement to get the tax credit at all, which is yet to be determined.)

This tax credit only affects the US market, which while big, is only maybe 40% of the market for MME production. Maybe less as the vehicle spreads to more global markets.

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