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 !

[jpinFLX]

I would not accept such a hosing, but of course it's up to you if you wish to give up on the tax subsidy, and can afford to do so. Especially at 2023 model year prices, I would insist that Ford or the dealer get me that tax credit. If they won't or can't, I'd tell them to keep their car and I would shop for another.

I might feel worse, except when I placed my order for a premium Awd sr, in August of 22, the whole incentive was up in the air. Maybe the MME would qualify based on battery maybe not. Now it is classified as a hard not for a premium Awd sr, which is a must IMHO, in the northeast. Can I afford it, probably, if you spread the 7k out over 60 months is it really that much. There is also all of 2023 for Ford to lobby everyone and their mother to get a tax incentive to be claimed in 2024, it is not like the 7,000 comes off the top you have to wait until next year to even claim it. Unless you do some tax funny business.

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[phil]

I might feel worse, except when I placed my order for a premium Awd sr, in August of 22, the whole incentive was up in the air. Maybe the MME would qualify based on battery maybe not. Now it is classified as a hard not for a premium Awd sr, which is a must IMHO, in the northeast. Can I afford it, probably, if you spread the 7k out over 60 months is it really that much. There is also all of 2023 for Ford to lobby everyone and their mother to get a tax incentive to be claimed in 2024, it is not like the 7,000 comes off the top you have to wait until next year to even claim it. Unless you do some tax funny business.

That is a healthy attitude, but it would really bug me, even if I could afford the money!

If you lease thru Ford, perhaps they would have a year to figure out the credit and might give it to you in lease terms retroactively. But if you purchase the car this month (for MSRP over $55k), it seems like you would be permanently disqualifed from ever getting the tax credit on that purchase. Maybe for January buyers, it would be best to lease now, and trust Ford to do the right thing later?

 

[ssmachemi]

That is a healthy attitude, but it would really bug me, even if I could afford the money!

If you lease thru Ford, perhaps they would have a year to figure out the credit and might give it to you in lease terms retroactively. But if you purchase the car this month (for MSRP over $55k), it seems like you would be permanently disqualifed from ever getting the tax credit on that purchase. Maybe for January buyers, it would be best to lease now, and trust Ford to do the right thing later?

Yeah at this point I feel like I either need to bite the bullet on the options plan and hope the IRS rules change (highly unlikely for 2023) or discuss leases and once again hope they can pass the savings on in the future.
Both options are sadly just all hopes and doubtful anything gets fingered out quickly. I’d rather not walk away from the car, but that’s option 3 to wait it out and see how the market settles.

 

[Ynnhojnorood]

The blazer isn’t on the list just yet. I’d expect it to pop up in the near future. Does it share body design with the Lyriq? Real question as I quite literally haven’t paid one iota of attention to the new Blazer.

I think the question is can the blazer stay under $55k? It should have more features such as park assist and ventilated seats, and super cruise is miles ahead, but definitely not as nice as the Mach E styling.

 

[generaltso]

I think the question is can the blazer stay under $55k? It should have more features such as park assist and ventilated seats, and super cruise is miles ahead, but definitely not as nice as the Mach E styling.

Since the Blazer hasn't enterred mass production yet, it's conceivable that GM could make small changes to ensure it gets classified as an SUV. Even if it delays release by a bit, it may be worth it if their main competitors at the same price point don't qualify for the tax credit.

 

[Ynnhojnorood]

Since the Blazer hasn't enterred mass production yet, it's conceivable that GM could make small changes to ensure it gets classified as an SUV. Even if it delays release by a bit, it may be worth it if their main competitors at the same price point don't qualify for the tax credit.

That’s possible, but with 3 models already starting under $55k, I doubt they’ll be too inclined to actually do anything. Maybe the AWD will classify as an SUV like the id4. I’m not sure why the same does not apply to the Mach-e. Nor do I understand why the escape PHEV is an SUV considering it is smaller in every dimension except 2” taller.

 

[generaltso]

That’s possible, but with 3 models already starting under $55k, I doubt they’ll be too inclined to actually do anything. Maybe the AWD will classify as an SUV like the id4. I’m not sure why the same does not apply to the Mach-e. Nor do I understand why the escape PHEV is an SUV considering it is smaller in every dimension except 2” taller.

It's because AWD is just one factor in a list of criteria. The ID.4 must have met enough of the other items in the list to have AWD just put them over the edge, while the MME did not, even with AWD. It seems to me like the easiest criteria to change would be front and rear fascias to increase the approach and departure angles. But I'm not a car designer.

 

[gryphon]

It's because AWD is just one factor in a list of criteria. The ID.4 must have met enough of the other items in the list to have AWD just put them over the edge, while the MME did not, even with AWD. It seems to me like the easiest criteria to change would be front and rear fascias to increase the approach and departure angles. But I'm not a car designer.

Should they just start calling it something different than a Mustang at that point?

 

[generaltso]

Should they just start calling it something different than a Mustang at that point?

That ship has sailed.

 

[yngwenli]

I would not accept such a hosing, but of course it's up to you if you wish to give up on the tax subsidy, and can afford to do so. Especially at 2023 model year prices, I would insist that Ford or the dealer get me that tax credit. If they won't or can't, I'd tell them to keep their car and I would shop for another.

This seems to affect all Tesla MYs without 7 seats too. These IRS rules make no sense to any common sense person and I think/hope they adjust them soon/right away.

I've stated before and will state again that I feel the new IRA EV tax credit was not a good idea. Ford should've been still able to get $3750 for a few months and GM/Tesla should've got nothing.

It's a total sh*t show with what's going on from that IRS page guidance.

Hope more rational minds prevail and takes that down and anything classified as an SUV should be an SUV. Even the CVRP (CA Tax rebate thing) rates both Mach-E, Tesla MY (too high in price now though) as valid for rebates being SUVs.

Not a good look for the IRS for sure (totally incompetent...).

 

[newmme]

Tesla, will aggressively exploit the new tax rules, and Ford can't allow itself to be at a $7,500 cost disadvantage on the majority of MME trims.

I don't think Ford needs to panic. Tesla had the "7500 cost disadvantage" you mention, and still sold quite a few cars. The MME should still sell all they can make regardless of 7500 credit, just like Tesla has done for years. Ford has to make a PROFIT on the MME.

 

[phil]

This seems to affect all Tesla MYs without 7 seats too. These IRS rules make no sense to any common sense person and I think/hope they adjust them soon/right away.

I've stated before and will state again that I feel the new IRA EV tax credit was not a good idea. Ford should've been still able to get $3750 for a few months and GM/Tesla should've got nothing.

It's a total sh*t show with what's going on from that IRS page guidance.

Hope more rational minds prevail and takes that down and anything classified as an SUV should be an SUV. Even the CVRP (CA Tax rebate thing) rates both Mach-E, Tesla MY (too high in price now though) as valid for rebates being SUVs.

Not a good look for the IRS for sure (totally incompetent...).

I don't think the IRS is going to adjust anything. IRS rejected Senator Manchin's pleas, and made a mockery of all the IRA provisions by extending the leasing loophole. This was no mistake, it was clearly intentional.

The $55k and other price limits don't matter. Neither do the income limits. The foreign manufacturers are eligible for tax credits too, under the lease loophole. Tax credits for everybody! Even Tesla and GM. Congress might as well never have passed the IRA. People will simply lease and continue to get tax credits for almost every EV.

I agree with you about one thing: It makes no sense. But here we are. And most likely, here we will stay.

 

[phil]

I don't think Ford needs to panic.

Correct. Ford benefits from all this. Their federal EV tax credits were about to be phased out, due to the 200k vehicle limit. Now, those credits are extended for another 10 years. So long as they use leases, rather than sales.

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