EV tax credit for 2023 Mach E

[amcmahon]

I’ve been looking forward to the order banks re-opening for the Mach E since the spring. With the new bill that passed and changes to the EV tax credit it seems really unlikely that the vehicle will qualify for a tax credit next year. I’m wondering how other people are approaching this uncertainty. I don’t want to order a vehicle that currently qualifies for a tax credit but may not by the time it’s delivered. The Mach E qualifies through the end of the year but it seems impossible to find a new one by then.

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[generaltso]

Place your order when the order banks open. If it doesn't qualify for the tax credit when it arrives, and you don't want it without it, walk away.

 

[dmastro]

I’ve been looking forward to the order banks re-opening for the Mach E since the spring. With the new bill that passed and changes to the EV tax credit it seems really unlikely that the vehicle will qualify for a tax credit next year. I’m wondering how other people are approaching this uncertainty. I don’t want to order a vehicle that currently qualifies for a tax credit but may not by the time it’s delivered. The Mach E qualifies through the end of the year but it seems impossible to find a new one by then.

I'm not sure where you read that. Every resource I've seen, including the US Dept of Energy, seems to indicate the MME will qualify at least under the first tier implementation beginning next year.

 

[Bigfeets]

I’ve been looking forward to the order banks re-opening for the Mach E since the spring. With the new bill that passed and changes to the EV tax credit it seems really unlikely that the vehicle will qualify for a tax credit next year. I’m wondering how other people are approaching this uncertainty. I don’t want to order a vehicle that currently qualifies for a tax credit but may not by the time it’s delivered. The Mach E qualifies through the end of the year but it seems impossible to find a new one by then.

I think this is your answer: The only way to get full $7500 tax credit, you must buy a new MME before the end of the 2022 tax year and have an income tax obligation exceeding $7500. If the purchase takes place after 12/31/22, the MME qualifies for $3750 tax credit (made in North America) but not the domestic battery content provisions. Also, the income limits will disqualify some potential buyers. (Lastly, Ford has not yet announced pricing for 2023MY MME.)

 

[Travman1974]

I think this is your answer: The only way to get full $7500 tax credit, you must buy a new MME before the end of the 2022 tax year and have an income tax obligation exceeding $7500. If the purchase takes place after 12/31/22, the MME qualifies for $3750 tax credit (made in North America) but not the domestic battery provisions. Also, the income limits will disqualify some potential buyers. (Lastly, Ford has not yet announced pricing for 2023MY MME.)

The Clean Vehicles tax credit is split into two components both dependent on the battery.

1. Critical Minerals - $3750 - this requires that the critical minerals are extracted or processed, in the US or a country that the US has a free trade agreement. Or recycled in North America. I don't think we have enough information to determine if this will be applicable. Most are suggesting not.

2. Battery Components - $3750 - This requires the battery to be assembled or manufactured in North America. I thought that the battery was manufactured by LG in Poland. The MME may not qualify for this either in 2023.

 

[generaltso]

The Clean Vehicles tax credit is split into two components both dependent on the battery.

1. Critical Minerals - $3750 - this requires that the critical minerals are extracted or processed, in the US or a country that the US has a free trade agreement. Or recycled in North America. I don't think we have enough information to determine if this will be applicable. Most are suggesting not.

2. Battery Components - $3750 - This requires the battery to be assembled or manufactured in North America. I thought that the battery was manufactured by LG in Poland. The MME may not qualify for this either in 2023.

Both of these are awaiting guidance from the Secretary of the Treasury. Until that happens, nobody really knows what will happen.

 

[machK]

Even with guidance, you need to get Manufacturer's(Ford) to break it down and tell you the mineral and manufacturing content. That's gonna be a disaster as they start getting batteries from different suppliers in different countries. Those first LFP batteries are likely coming from CATL in china until they can build a plant closer. So this is likely going to end up being qualified by trim since batteries will likely go by trim or SR/LR.

What's sad is the cheap batteries may end up missing the rebate basically forcing you get the LR battery which has a better chance of getting the rebate. There may be no point in ordering a select if that happens.

 

[DaleL]

Without the Inflation Reduction Act (IRA), once Ford sold 200,000 EVs in the USA, the $7,500 tax credit was going to phase out anyway. I am likely to order a 2023 Mach-e. I did not expect to get any tax credit.

The IRA may or may not result in a tax credit for buyers of a 2023 MME. My 2018 Clarity could also be quite desirable to a dealer under the $4,000 used clean car credit. At one time it was expected that Ford would open up the ordering of the 2023 MME on August 15. I suspect that with the passage of the IRA, Ford is scrambling to determine how to have at least some trims/batteries qualify for some or all of the tax credits.

It does appear that the lower cost & lower capacity LFP batteries, made and sourced from China, will not qualify. Oh well, just have to wait until September or October to find out.

 

[phil]

If you want the $7,500, I recommend you get a Tesla.

Elon Musk is not very bright, but he does have one special gift: He's never met a subsidy he couldn't exploit. Tesla will capture that government subsidy, by hook or by crook.

Ford? Who knows? Maybe, some day.

 

[Hussar13]

I just read that Ford execs still think that $3750 will be available in 2023 for the Mach E. https://seekingalpha.com/news/3912424-ford-hits-milestone-production-mark-with-mustang-mach-e-as-it-looks-to-scale-up-even-more

 

[kkgg]

I think mach E will still qualify for $3750.00(half).

Lets say you are getting a car worth 60k
I see 2 options for you,
- Order it and take delivery next year (get $3750 tax credit in 2024, long time)
- Search and find a new one and get it at MSRP this year(may be 2-3k mark up is fine too) since that much more you are getting in tax credit this year (while filing 2022 taxes, not a long time)

finally,
In the grand schema of things (60k car), 3750 should not make or break a deal

 

[Triggerhappy007]

I think mach E will still qualify for $3750.00(half).

Lets say you are getting a car worth 60k
I see 2 options for you,
- Order it and take delivery next year (get $3750 tax credit in 2024, long time)
- Search and find a new one and get it at MSRP this year(may be 2-3k mark up is fine too) since that much more you are getting in tax credit this year (while filing 2022 taxes, not a long time)

finally,
In the grand schema of things (60k car), 3750 should not make or break a deal

Keep in mind that there will be an income limit starting next year. I think about 1/2 of the users on here won't qualify.

 

[Keeperofthe7keys]

Keep in mind that there will be an income limit starting next year. I think about 1/2 of the users on here won't qualify.

I think people with that kind of income are more likely buying E-trons and and Taycans not Mach Es lol.

 

[Triggerhappy007]

I think people with that kind of income are more likely buying E-trons and and Taycans not Mach Es lol.

 

[Keeperofthe7keys]

That is honestly shocking, but also doesn't reflect income disparity in the US which has me curious, it's a low sample size though. Certainly not what I would be buying if I had that kind of money. Although to be fair, this also depends on where else priorities/other major expenses are. Though the credit is really not a concern a buying decision at that point.

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