Ford's tax credit availability

[benk016]

If the law stays the same then, all Mach Es sold next year will likely get the full tax credit. However, the democratic congress is planning on making lots of tax changes and many of them focus on reducing/eliminating tax credits for those making a decent amount of money, so there’s a chance that the tax credit will be phased out or eliminated next year for those making over a certain threshold.

I think, if anything, this tax credit will get expanded. I actually wouldn't be surprised if they updated it to make Tesla qualify again. or make it so you can get the rebate at purchase instead of waiting to file.

Again this is just my opinion, but I really don't see this administration taking away tax credits for electric.

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[Old Guy]

https://www.reuters.com/world/us/us-senate-panel-advances-ev-tax-credit-up-12500-2021-05-27/

 

[JWW]

The IRS has made it official?

I noticed that the IRS has added a few new EV's that qualify for the IRC 30D plug in credit., one is:

2021

Mustang Mach-E GT

$7,500

Also, according to the IRS, thru 3/31/2021 Ford has sold 141,749 qualifying units.

The credit BEGINS to phases out once the manufacturer reaches 200,000 units used in the United States.

However the Mach-e is not the only new EV - the Lighting is coming online in the next year but before that, I believe, that the Transit vans will start delivery.

As with all tax items consult with your tax professional (don’t rely on what you read on an MME Forum).

 

[tacobellcow]

The IRS has made it official?

I noticed that the IRS has added a few new EV's that qualify for the IRC 30D plug in credit., one is:

2021

Mustang Mach-E GT

$7,500

Also, according to the IRS, thru 3/31/2021 Ford has sold 141,749 qualifying units.

The credit BEGINS to phases out once the manufacturer reaches 200,000 units used in the United States.

However the Mach-e is not the only new EV - the Lighting is coming online in the next year but before that, I believe, that the Transit vans will start delivery.

As with all tax items consult with your tax professional (don’t rely on what you read on an MME Forum).

By "units used" do you mean that 200k people have taken ownership of their Mach E? For example, what if you ordered before it hit 200k but don't know what the number will be when you take ownership? Also is each trim level separate? For example: does the GT have a different threshold than premium?

I know that most of us need to consult a tax professional. My biggest challenge is understanding how I know my positioning relative to the phase out. A tax professional will never be able to tell me that!

 

[JWW]

By "units used" do you mean that 200k people have taken ownership of their Mach E? For example, what if you ordered before it hit 200k but don't know what the number will be when you take ownership? Also is each trim level separate? For example: does the GT have a different threshold than premium?

The units used in the US comment - only cars used in the US are counted to the 200k, not those used in Canada or Europe or...

Also the 200k is for ALL for eligible Ford vehicles, not just the Mach-e. For a complete list click here, scroll down and expand the Ford Motor Company entry. As you can see the march to 200k started in 2012 with the Focus Electric.

Finally you must take delivery and place the vehicle in service, not just have on on order, to be eligible.

However that being said once 200k is reached there is a phase in period over a few quarters.

The $7,500 is still available for another quarter, then it goes to $3,750 for 2 quarters, and finally $1,875 for 2 quarters. So, there is some credit available for over a year after the quarter in which they sell their 200,000th unit. (thanks @timbop)

 

[tacobellcow]

The units used in the US comment - only cars used in the US are counted to the 200k, not those used in Canada or Europe or...

Also the 200k is for ALL for eligible Ford vehicles, not just the Mach-e. For a complete list click here, scroll down and expand the Ford Motor Company entry. As you can see the march to 200k started in 2012 with the Focus Electric.

Finally you must take delivery and place the vehicle in service, not just have on on order, to be eligible.

However that being said once 200k is reached there is a phase in period over a few quarters.

The $7,500 is still available for another quarter, then it goes to $3,750 for 2 quarters, and finally $1,875 for 2 quarters. So, there is some credit available for over a year after the quarter in which they sell their 200,000th unit. (thanks @timbop)

Thank you. Since we haven't hit the phase out yet, I still have at least a few quarters. Hopefully this thing comes in sooner than later. Not holding my breath on that.

 

[JWW]

So did I read that correctly that the $7,500 is only available for another quarter? It is Q3 now, so that I would need to take ownership by Dec. 31 2021 to be eligible for the full tax credit?

No, you have until the Quarter AFTER Ford sells its 200k eligible vehicle. No one knows when the 200k eligible vehicle will be sold.

Example, if Ford sells its 200k eligible vehicle in April 2022, then you have the rest of that quarter and then the following quarter to purchase your eligible vehicle and receive the $7,500 credit.

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