IRS recategorizes Mach-E as SUV with $80,000 limit

[4sallypat]

You all do realize this increased MSRP tax credit is a moot point come March or when the IRS rules on the battery ??

None of the trims will qualify for the full amount unless you find a 3rd party lease company that passes the credit.

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[generaltso]

You all do realize this increased MSRP tax credit is a moot point come March or when the IRS rules on the battery ??

None of the trims will qualify for the full amount unless you find a 3rd party lease company that passes the credit.

Even if the credit goes down to $3750, i wouldn’t call it moot.

 

[4sallypat]

Even if the credit goes down to $3750, i wouldn’t call it moot.

WHat if it's ZERO credit ?

 

[generaltso]

WHat if it's ZERO credit ?

Anything‘s possible since we haven’t seen the guidance yet, but Ford expects it to qualify for $3750.

 

[timbop]

WHat if it's ZERO credit ?

The law is clearly stated regarding the manufacture of the car in North America, so unless they move the plant to china it will qualify for the base portion of the credit.

*** EDIT ***
From the treasury website here:

 

[timbop]

Also, please note the vague language at the end:

 

[4sallypat]

The law is clearly stated regarding the manufacture of the car in North America, so unless they move the plant to china it will qualify for the base portion of the credit.

*** EDIT ***
From the treasury website here:

So are you interpreting the "battery components requirement" as made in the USA ?

I thought they are made in Poland ?

 

[generaltso]

The law is clearly stated regarding the manufacture of the car in North America, so unless they move the plant to china it will qualify for the base portion of the credit.

Not exactly. The car has to be manufactured in North America to qualify for the credit at all. From there, a certain percentage of the battery components have to be assembled in North America to qualify for half the credit. For the other half, a certain percentage of the critical minerals in the battery need to come from the US or a free trade partner.

So it's possible that a car manufactured in North America could still qualify for zero if it doesn't meet the battery component assembly and critical mineral requirements. But since Ford has already said that they expect the MME to qualify for $3750, I don't think the battery component assembly requirement will be a hurdle.

 

[generaltso]

So are you interpreting the "battery components requirement" as made in the USA ?

I thought they are made in Poland ?

The battery cells are made in Poland. But the battery packs are assembled in Mexico.

 

[timbop]

So are you interpreting the "battery components requirement" as made in the USA ?

I thought they are made in Poland ?

In Question 1 it talks about the final assembly must be in North America, be under 14000 pounds and a few other criteria that the Mach-E meets. I guess I wasn't being clear what I meant - my bad. Here's #1:

 

[4sallypat]

The battery cells are made in Poland. But the battery packs are assembled in Mexico.

So it seems that if the IRS rules the IRA statement of battery manufacture is North American, then half credit is what I should expect ?

Well that's better then zero credit.

I'll take the half credit - it's better than none.

Thanks!

 

[generaltso]

So it seems that if the IRS rules the IRA statement of battery manufacture is North American, then half credit is what I should expect ?

Well that's better then zero credit.

I'll take the half credit - it's better than none.

Thanks!

Half the credit is what Ford expects. But I think it’s likely that your car will arrive before the guidance is released, which would make it qualify for the full credit.

 

[4sallypat]

Half the credit is what Ford expects. But I think it’s likely that your car will arrive before the guidance is released, which would make it qualify for the full credit.

Ah, I like your optimism!

After 4 ETA delays (starting first week January) and now looking at late February, I am not holding my breath.

Hoping for :
1. delay in IRS ruling on battery credit
2. arrival on time after 4 delays....

 

[Mach1E]

Half the credit is what Ford expects. But I think it’s likely that your car will arrive before the guidance is released, which would make it qualify for the full credit.

What Ford expects and what the government does don’t seem to go in hand these days.

 

[generaltso]

What Ford expects and what the government does don’t seem to go in hand these days.

Yup. That’s why it will ultimately depend on the guidance.

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