Federal tax credit

[Kachook]

Hi, all. I wanted to solicit this forum’s thoughts on whether you think if I order an MME GT PE when the order banks open (assuming Congress can’t get out of its own way and doesn’t change anything), would I still qualify for the $7,500. Assume I meet all the other requirements. I’m worried that for is close to the initial phaseout to $3,750 or whatever the number is. TIA.

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[SWO]

Almost zero chance.

 

[generaltso]

The order banks aren't likely to open again until the 2023 model year can be ordered. So it's very likely the full $7500 will no longer be in play.

 

[dmastro]

You're in the scenario now where you need to figure out if you can find a car with less than $7,500 ADM, in which case you'll be ahead of the game financially and get your car sooner.

 

[jlauro]

I would put it higher than 0% (government could always change the rules so it's possible...), and also real slight chance the delay from order to shipment will be much lower once it opens.

That said, probably higher chance to find one on the lot with no ADM then the break going down to 50% by the time you receive an order that hasn't already been placed... Of course that depends how picky you are on color, etc...

 

[CompilerBreak]

I would say there's probably zero chance of getting the full $7500 on a future Mach E order, but possibly a partial credit as it phases out depending which quarter that happens in.

 

[Murse-In-Airy]

Pretty darn low. But do remember that after Ford sells 200K EV’s the incentive goes down to $3750 for a while. So it’s not like it all suddenly shuts off. Pretty good chance you get $3750 back.

 

[dbsb3233]

Ford was at ~160k units as of the end of 2021. Only 40k left. With 10k-15k Lightning sales expected this year, multiple PHEV model sales, and eTransit sales adding to ongoing Mach-E sales, Ford should probably hit 200k around 3Q (maybe even 2Q). But there's an extra quarter of full credit beyond that (takes a while to get all the sales data). If they hit 200k in 3Q2022, the $7500 lasts thru 12/31/2022 deliveries, then it drops to $3750 for 2 more quarters.

https://www.irs.gov/businesses/irc-30d-plug-in-electric-drive-motor-vehicle-credit-quarterly-sales

 

[nvabill]

Reduced yes, $7500 no way!

 

[RickMachE]

Right, zero chance. 50% rebate for first half of calendar 2023, 25% for second calendar half. Congress won't pass anything.

 

[Dancefreak]

You're in the scenario now where you need to figure out if you can find a car with less than $7,500 ADM, in which case you'll be ahead of the game financially and get your car sooner.

Really less than 3500 since a car ordered on day 1 for 2023 should still get half the rebate.

But should also be considered that the significant price increases announced and abandoned last month will probably be the minimum jump for 2023 MSRP.

 

[dbsb3233]

Really less than 3500 since a car ordered on day 1 for 2023 should still get half the rebate.

Remember that the tax credit is based on the sale date (when you take delivery), not the order date.

 

[Dancefreak]

Remember that the tax credit is based on the sale date (when you take delivery), not the order date.

Yes. I know that. The most likely scenario--if Ford hits 200K in Q3--is that the half credit will be good on cars delivered through June 30, 2023.

 

[dbsb3233]

Yes. I know that. The most likely scenario--if Ford hits 200K in Q3--is that the half credit will be good on cars delivered through June 30, 2023.

Yep. I guess you meant something different with "ordered on day 1 for 2023" than what I thought you meant.

 

[ChuckA]

I think that there is zero chance for the full rebate on an MME that may not deliver this year. You may be able to find one on a lot, but GT-PE’s are probably not the trim you’ll find.

Don’t make any decisions on what Congress will do. They will do nothing.

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