How many got screwed on the tax credit? [ADMIN WARNING: NO POLITICS]

[Star Lord]

Just curious how many people got a nasty letter from the IRS after learning your tax credit was rejected because your MME isn't part of the EV rebate?

What were the circumstances and what did you have to do to fix it?

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[ADDZ71]

What year model? The 2024's did not qualify since their batteries and minerals were from outside of the USA. If you leased you still received the full $7500 credit due to a loophole. The IRA publishes a list of qualifying vehicles. If your dealer told you otherwise that is unfortunate but I think it is a proven fact that dealer sales people are usually the most uninformed about nearly anything ralting to cars. Where to get the best coffee they may be good at!

 

[RickMachE]

What year model? The 2024's did not qualify since their batteries and minerals were from outside of the USA. If you leased you still received the full $7500 credit due to a loophole. The IRA publishes a list of qualifying vehicles. If your dealer told you otherwise that is unfortunate but I think it is a proven fact that dealer sales people are usually the most uninformed about nearly anything ralting to cars. Where to get the best coffee they may be good at!

It's not a model year thing, it's based on the year of purchase. The Mach-E was reduced in 2023, and eliminated at the end of the year. Any year Mach-E bought in 2024 got no tax credit.

 

[Star Lord]

What year model? The 2024's did not qualify since their batteries and minerals were from outside of the USA. If you leased you still received the full $7500 credit due to a loophole. The IRA publishes a list of qualifying vehicles. If your dealer told you otherwise that is unfortunate but I think it is a proven fact that dealer sales people are usually the most uninformed about nearly anything ralting to cars. Where to get the best coffee they may be good at!

2023. It only qualified for half the amount according to the IRS form and documents I got from the dealer. However in June I got a letter from the IRS saying that my 23 MME didn't qualify and I am short $3500 on my 2024 taxes now.

 

[Star Lord]

It's not a model year thing, it's based on the year of purchase. The Mach-E was reduced in 2023, and eliminated at the end of the year. Any year Mach-E bought in 2024 got no tax credit.

Do you have any reference on that?

 

[RickMachE]

Do you have any reference on that?

It's simply fact.

Starting 4/18/23, the Mach-E tax credit was reduced from $7,500 to $3,750, due to it not meeting one of the two battery requirements.

Then, on 1/1/24, the requirements got tougher, and the Mach-E no longer qualified at all (whereas the Lightning still did, and still does).

If you bought a Mach-E (bought, not leased) in 2024, you are not eligible for any tax credit at all from the federal government. If a dealer told you that you were, they lied or were mistaken. If you have in writing from them that it qualified, you may have a case with their GM or in court.

There are threads that talk about the tax credit as time passed that you can search for, but this is 100% the way it was and is.

https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after

 

[RickMachE]

If you bought in 2024, the only one to blame is yourself, it was widely publicized that the Mach-E no longer qualified. The IRS website clearly showed (and still does) that the Mach-E didn't qualify any longer as it is not on the list. In addition, many other sources explained this including Ford's website. The requirements to get the tax credit push to get battery production and raw materials FROM THE US over time, each year increasing percentages. The Mach-E wasn't able to meet the 2024 requirements (whereas the Lightning was). With Ford's new battery plant, assuming the credit wasn't killed like it was by the OTHER PARTY, the Mach-E likely would have qualified for the full tax credit starting in 2025. Now, no vehicle qualifies after 9/30/25.

https://electrek.co/2023/12/06/ford-mustang-mach-e-to-lose-ev-tax-credit/

 

[TNGreenMachE]

Just curious how many people got a nasty letter from the IRS after learning your tax credit was rejected because your MME isn't part of the EV rebate?

What were the circumstances and what did you have to do to fix it?

https://fueleconomy.gov/feg/tax2023.shtml

 

[RickMachE]

2023. It only qualified for half the amount according to the IRS form and documents I got from the dealer. However in June I got a letter from the IRS saying that my 23 MME didn't qualify and I am short $3500 on my 2024 taxes now.

The issue here is with your understanding, and the dealership giving you something that led you to believe you would get a tax credit on your 2024 taxes.

In 2024, all dealerships were required to enter your information into the IRS website and give you paperwork at the time of sale. When they went to enter the Mach-E, it would have told them it was not eligible.

In addition, had you used a tax program or qualified tax preparer, it would have rejected the vehicle as not eligible.

If you would like (not that it matters), take a picture of the forms you got from the dealership, hiding any private information, and post it here.

 

[Star Lord]

The issue here is with your understanding, and the dealership giving you something that led you to believe you would get a tax credit on your 2024 taxes.

In 2024, all dealerships were required to enter your information into the IRS website and give you paperwork at the time of sale. When they went to enter the Mach-E, it would have told them it was not eligible.

In addition, had you used a tax program or qualified tax preparer, it would have rejected the vehicle as not eligible.

If you would like (not that it matters), take a picture of the forms you got from the dealership, hiding any private information, and post it here.

Appreciate the offer. The damage is done. No point. I guess I learned my lesson to not trust a dealer then. That should make the admins happy. Unless they love dealers. Then this is the wrong place to run a forum.

 

[Star Lord]

https://fueleconomy.gov/feg/tax2023.shtml

Thanks for that reference.

 

[RickMachE]

Not trusting a dealership is a long standing thing, yes, especially when it comes to your personal taxes. For example, you might have been disqualified on income (had the Mach-E qualified), and they have no way to know that, unless you told them your income.

 

[Star Lord]

Not trusting a dealership is a long standing thing, yes, especially when it comes to your personal taxes. For example, you might have been disqualified on income (had the Mach-E qualified), and they have no way to know that, unless you told them your income.

I am sure when Ford Credit runs a credit check they may know.

 

[ChrisO]

When dealing with a lease, the dealer/credit company is applying for the credit, so they will certainly know if the tax credit is available.

When you are buying it is all up to you to make sure that you can get the claim since it not only depends on what credits are available at the time, it also depends on your taxes. If for instance, you didn't have to pay any taxes that year, you would get exactly zero.

Ford credit isn't even going to look at if you can qualify for the credit when you buy the car.

 

[RickMachE]

When dealing with a lease, the dealer/credit company is applying for the credit, so they will certainly know if the tax credit is available.

When you are buying it is all up to you to make sure that you can get the claim since it not only depends on what credits are available at the time, it also depends on your taxes. If for instance, you didn't have to pay any taxes that year, you would get exactly zero.

Ford credit isn't even going to look at if you can qualify for the credit when you buy the car.

That's not correct.

Starting in 2024, the tax credit could be taken at the point of sale. If it was (for vehicles that had a tax credit), whether or not your tax liability was sufficient was IRRELEVANT. If the dealer made you take the tax credit on your taxes, then your tax liability being sufficient matter. In all cases, the income cutoffs mattered, so if the dealership processed the credit but you didn't make the income cutoffs, you'd have to pay it back.

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