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

[MachhE-CT]

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?

My dealer clearly told me my 2024 was not eligible for the credit. But I knew that before I went shopping. Didn't bother me as I liked the car so much that the credit or lack thereof had no influence on my purchase. The credit would have been nice but it has not reduced my enjoyment of the car. The IRS website is pretty clear on eligible vehicles.

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[4sallypat]

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.

I am confused.

Did you lease or finance thru Ford Credit ?

If you financed it after April 2023 but before December 2023, meet income limits, and have tax liability for 2023, you can claim the $3750 on your taxes starting in 2024.

That's what I did (2023 Job 1) purchased in June 2023. Claimed the credit when I filed in 2024. Never heard back from the IRS.....

If you leased it then you can't claim the tax credit as the leassor (Ford) keeps it unless it was returned to you as a cap cost reduction.

 

[Bad Dolphin]

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

Thank you for posting the back up to your (accurate) statement.

 

[RickMachE]

I am confused.

Did you lease or finance thru Ford Credit ?

If you financed it after April 2023 but before December 2023, meet income limits, and have tax liability for 2023, you can claim the $3750 on your taxes starting in 2024.

That's what I did (2023 Job 1) purchased in June 2023. Claimed the credit when I filed in 2024. Never heard back from the IRS.....

If you leased it then you can't claim the tax credit as the leassor (Ford) keeps it unless it was returned to you as a cap cost reduction.

He bought in 2024, not 2023...

 

[RickMachE]

I had asked my sales contact about the rebate very early (because I noticed the instant credit/discount was not applied to price online or on the window sticker) and they explained it was because the MME was made in Mexico and didn't qualify. Thankfully I ended up getting the Ford Employee Discount sale/discount which did pretty much the same, for the same amount in the end.

We are discussing the federal tax credit, not a rebate. Federal tax credits are not listed on window stickers.

As far as their explanation, they are incompetent. The tax credit required the vehicle be assembled in North America. It fully qualified in 2022 and early 2023. Then, after April 18, 2023, it qualified for half the tax credit because one of the two battery criteria it didn't qualify. Then, in 2024, because the battery criteria percentages increased, it didn't qualify at all (yet the Lightning still did, and still does).

 

[Space_Pony]

It sounds like nobody did.

 

[devmach-e]

I actually purchased my vehicle in April of this year. I was told by the dealership, that I would get a $4000 rebate if an "EV" was purchased. (Which I did) Surprise, IRS sends me a letter in the mail. You don't qualify for a tax credit because you opted to receive the rebate. I was never given that option.

Vehicles purchased this year would have any sort of available tax credit applied for the 2025 tax year. If you tried to claim a tax credit on your 2024 taxes for something purchased this year, then it isn’t surprising the IRS said “hold on there, buckaroo.”

If you purchased a used EV, then the dealer was supposed to deduct $4K off of the purchase price, assuming that the car was at least 2 model years old (I.e a 2023 or earlier), and was priced under $25K.

 

[Guss-E 2021]

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

Take it from someone who pulls credit on people all the time: income is not part of the report. Only the IRS knows what you make (assuming you are honest on your tax forms).

 

[devmach-e]

Take it from someone who pulls credit on people all the time: income is not part of the report. Only the IRS knows what you make (assuming you are honest on your tax forms).

Every time I apply for a loan, it asks me for my annual income. Of course, there’s no way to easily verify that.

 

[Guss-E 2021]

Every time I apply for a loan, it asks me for my annual income. Of course, there’s no way to easily verify that.

Yes but you are providing the income information. The lender can't get it on their own. Trust me in the 17 years I've been in lending, I have never seen income listed on a report from Experian, Transunion or Equifax.

We require copies of filed and processed tax returns for both individuals and businesses to determine income.

 

[voxel]

Change the title.

How many got screwed by your Stealership on the tax credit?

 

[Administrator]

Do Lenders Check Income for an Auto Loan? https://share.google/tS7wDlWJgr6sM91Vw

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[KriegTiger]

We are discussing the federal tax credit, not a rebate. Federal tax credits are not listed on window stickers.

As far as their explanation, they are incompetent. The tax credit required the vehicle be assembled in North America. It fully qualified in 2022 and early 2023. Then, after April 18, 2023, it qualified for half the tax credit because one of the two battery criteria it didn't qualify. Then, in 2024, because the battery criteria percentages increased, it didn't qualify at all (yet the Lightning still did, and still does).

The federal tax credit COULD BE APPLIED as a rebate at time of purchase. It WAS shown on the websites and window stickers for Lightnings while I was shopping around all last year and into this year up until the point that I ordered my MME and stopped looking at other stuff. I don't know the process because I obviously didn't end up with a Lightning, but it was always shown in the price summary list with an *, and that * was explained below as the federal tax credit being applied at time of purchase.

A quick google provides more detail:

Part of why I ended up going with the MME over the Lightning is that even with that $7500, I would have to trade in our previous vehicle (also an F-150, incidentally) to get it down to the point where the savings I had would get the payment where I wanted it. So we kept the F-150 for doing 'truck things' as needed, and I got myself a nice daily driver while keeping payments low because the MME was cheaper out of the gate even at the highest trim level.

 

[4sallypat]

He bought in 2024, not 2023...

Ah then that resolves the issue!

I guess it was TLDR issue for me...

 

[4sallypat]

The federal tax credit COULD BE APPLIED as a rebate at time of purchase. It WAS shown on the websites and window stickers for Lightnings while I was shopping around all last year and into this year up until the point that I ordered my MME and stopped looking at other stuff. I don't know the process because I obviously didn't end up with a Lightning, but it was always shown in the price summary list with an *, and that * was explained below as the federal tax credit being applied at time of purchase.

A quick google provides more detail:

Yes, correct, the Lightning qualifies along with a handful of other brands currently.

OTOH only way to "capture" any tax credit for a 2024 or 2025 Mach E would have been to lease it.

If you leased it, Ford MAY have given you back some money in the form of a cap cost reduction or incentive.

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