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 !

[s7davis]

They didn’t used to be. But with their recent price jumps…… yup. Definitely overpriced. It’s also why they have a $7500 incentive right now.

And if they suffer the same “no credit” fate as the Mach e, expect those discounts to continue.

Most all Model 3 and Ys will qualify for the tax credit. As they are built in USA and the Batteries are as well. Just the mining of resources is the downfall when that becomes a factor. So starting Jan. 1 the Model 3 and Y's will qualify for full tax credit. Ironically though the 5-Seater model Y is listed as a car by the IRS and the 7-seater is an SUV lol go figure. And they do not make the 7-seater any more I do not think they do at least.

So mostly the MSRP cap for both vehicles according to the IRS website is $55k for all variations of each Model 3 and Model Y 5 Seat Config.

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[Scooby24]

Note the Lyriq then reference the following from the Cadillac website:

Well damn, there goes my hope for the Blazer EV SS being considered an SUV.

 

[Scooby24]

I'm reading over the IRS tax guidelines for 2023s purchased between 8/16 and 12/31 and I don't think ANY of those 2023's get a tax credit at all.

Per the IRS site for vehicles purchased in 2022 or before: https://www.irs.gov/credits-deductions/credits-for-new-electric-vehicles-purchased-in-2022-or-before

For vehicles purchased after August 16th, 2022: Check a list of qualifying Model Year 2022 and early Model Year 2023 electric vehicles under "For Vehicles Purchased before January 1, 2023."

So some 2023's will qualify. Go to the list of vehicles that qualify between 8/16 and 12/31 and the 2023 Mach-e does not qualify. Seems to mean anyone who might have had a 2022 convert to 2023 and took delivery, and anyone who bought a 2023 before EOY thinking they were getting in before the bell got screwed over big.

https://afdc.energy.gov/laws/electric-vehicles-for-tax-credit#/tab-2022

 

[Chainspell]

I'm reading over the IRS tax guidelines for 2023s purchased between 8/16 and 12/31 and I don't think ANY of those 2023's get a tax credit at all.

Per the IRS site for vehicles purchased in 2022 or before: https://www.irs.gov/credits-deductions/credits-for-new-electric-vehicles-purchased-in-2022-or-before

For vehicles purchased after August 16th, 2022: Check a list of qualifying Model Year 2022 and early Model Year 2023 electric vehicles under "For Vehicles Purchased before January 1, 2023."

So some 2023's will qualify. Go to the list of vehicles that qualify between 8/16 and 12/31 and the 2023 Mach-e does not qualify. Seems to mean anyone who might have had a 2022 convert to 2023 and took delivery, and anyone who bought a 2023 before EOY thinking they were getting in before the bell got screwed over big.

https://afdc.energy.gov/laws/electric-vehicles-for-tax-credit#/tab-2022

Is our reservation order considered a "written binding contract"?

Purchase date vs. delivery date

If you entered a written binding contract to buy a vehicle before August 16, 2022, but took possession on or after August 16, 2022, and before January 1, 2023, you may claim the credit based on the prior rules and disregard the assembly requirement.

 

[phil]

Say what you will about rich, Corinthian leather. It may not have been Corinthian, but at least it was real leather!

I agree with the larger point. I really don't understand why so many manufacturers seem to think it's a good idea to design expensive electric cars with chintzy interiors. It's not just Ford - Tesla, Chevy, and others do the same damn thing. It's just foolish to ruin an expensive car with cheap features and materials. I want the Corinthian leather option! And the cooled seats, HUD, active suspension, etc.

 

[Scooby24]

Is our reservation order considered a "written binding contract"?

Purchase date vs. delivery date

If you entered a written binding contract to buy a vehicle before August 16, 2022, but took possession on or after August 16, 2022, and before January 1, 2023, you may claim the credit based on the prior rules and disregard the assembly requirement.

Every tax expert I've heard from said no, because it was refundable and didn't meet the IRS's definition of "binding"

 

[Chainspell]

Every tax expert I've heard from said no, because it was refundable and didn't meet the IRS's definition of "binding"

I am super sad, my GTPE just came in tonight. I am supposed to go finalize it tomorrow morning... This week it's been so back and forth whether it would arrive in time, if it would qualify, etc. If what you're seeing is true then I don't think I can go through with it...

 

[phil]

Go to the list of vehicles that qualify between 8/16 and 12/31 and the 2023 Mach-e does not qualify.

"This list will be updated as vehicle manufacturers submit Fuel Economy labeling information and Part 583 vehicle identification information to the relevant government agencies."

 

[Scooby24]

I am super sad, my GTPE just came in tonight. I am supposed to go finalize it tomorrow morning... This week it's been so back and forth whether it would arrive in time, if it would qualify, etc. If what you're seeing is true then I don't think I can go through with it...

I'm really sorry! I don't see the blindspot in the wording on the guidelines that would give an exception. It seems very well defined based on the explicit wording, timelines for purchase and vehicles that qualified under the hybrid rules.

 

[Sundar]

Not sure if anyone mentioned this, but apparently 2024 onwards, the tax rebate CAN be applied at the Point of Sale, which means that buyers can transfer the rebate to the dealer. Get the rebate right there, which can help with prices, but also with leases.

I am thinking, this may also help those who want to ditch the MME this coming year, but can still drive and enjoy one next year. (Maybe!)

https://www.pbs.org/newshour/economy/tax-credits-for-electric-vehicles-are-coming-how-will-they-work

How will the credit be paid?
At first, it will be applied to your 2023 tax return, which you file in 2024. Starting in 2024, consumers can transfer the credit to a dealership to lower the vehicle price at purchase.

 

[Scooby24]

"This list will be updated as vehicle manufacturers submit Fuel Economy labeling information and Part 583 vehicle identification information to the relevant government agencies."

I could be wrong, but I would assume that would have been done already with 2023s being sold.

 

[Mach1E]

I am super sad, my GTPE just came in tonight. I am supposed to go finalize it tomorrow morning... This week it's been so back and forth whether it would arrive in time, if it would qualify, etc. If what you're seeing is true then I don't think I can go through with it...

You should be fine. As many have said, for deliveries this calendar year, the “list” is irrelevant as long as it’s built in North America, that’s the only requirement.

 

[Logal727]

I am super sad, my GTPE just came in tonight. I am supposed to go finalize it tomorrow morning... This week it's been so back and forth whether it would arrive in time, if it would qualify, etc. If what you're seeing is true then I don't think I can go through with it...

I’m confused, why are you sad? Get it all purchased before 2023 and you are good.

 

[bostonman]

Does the max MSRP apply to MME's delivered between 8/16/22 and 12/31/22? Trying to research that now.

Edit: MY23 MMEs delivered prior to 12/31/22

Follow this link for MME delivered prior to end of 2022:
https://www.irs.gov/credits-deducti...d-clean-vehicles-purchased-in-2022-and-before

 

[bostonman]

I’m hoping they will get around to updating this list to include 2023 Fords purchased in 2022. Other manufacturers have MY23 vehicles listed. I don’t see any reason why we wouldn’t be eligible but I’d be a lot more comfortable to see 2023 MME on that list!

I have a 2023 Premium delivered in Dec2022 and I am not nervous. They are selling next model year vehicles way before the end of the year (6 months) all the time since the '90s. This tax rule seems to based on the deliver date before the 12/31/2023 and is real dead line.

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