Ford's tax credit availability

Woeo

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Totally agree with your analysis, but there is nothing wrong with being aggressive, especially since in this case the "stinging rebuke" would be ... nothing. Assuming there isn't an unusual situation, It's just a timing question
Not sure the answer is nothing. Interest and penalties are a consideration. And never underestimate the pain of an audit, even if you think there is nothing to hide beyond lying about an in service date.
 
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Badger_Prof

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Again not saying your argument isn't without merit, I'm merely offering a "reasonable" interpretation by the filer of functionality and availability and it's common use in everyday commerce.
From IRC 30 D (IRS code): “The vehicles must be acquired for use or lease and not for resale. Additionally, the original use of the vehicle must commence with the taxpayer and the vehicle must be used predominantly in the United States. For purposes of the 30D credit, a vehicle is not considered acquired prior to the time when title to the vehicle passes to the taxpayer under state law.”
 

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From IRC 30 D (IRS code): “The vehicles must be acquired for use or lease and not for resale. Additionally, the original use of the vehicle must commence with the taxpayer and the vehicle must be used predominantly in the United States. For purposes of the 30D credit, a vehicle is not considered acquired prior to the time when title to the vehicle passes to the taxpayer under state law.”
That’s an important clause!
 

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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.

2021Mustang Mach-E First Edition Premium AWD$7,500
2021Mustang Mach-E California Route 1$7,500
2021Mustang Mach-E Premium AWD$7,500
2021Mustang Mach-E Premium RWD$7,500
2021Mustang Mach-E Select AWD$7,500
2021Mustang Mach-E Select RWD$7,500

The addition seems to have occurred sometime after the EPA mileage figures were released (the last time l looked for the Mach-e on the IRS site).

Also, according to the IRS, thru 6/30/2020 Ford has sold 125,845 qualifying units.
Typically Ford sells under 2,000 qualifying units per quarter (highest quarter was under 6.900 units).
It will be interesting to see how the quarterly sales figures will change with the Mach-e!

Now we can all be part of the race to 200,000 units.

The credit phases out once the manufacturer reaches 200,000 units used in the United States.
With a projected worldwide production of 50k units we don't need to worry about Ford reaching this level of US sales with the Mach-e for a while; perhaps with the Transit or even the F-150e??

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


timbop

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The credit phases out once the manufacturer reaches 200,000 units used in the United States.
Clarification: the credit BEGINS phasing out after 200k units have been sold in the US. The $7500 is still available for another quarter, then it goes to $3750 for 2 quarters, and finally $1875 for 2 quarters. So, there is some credit available for over a year after the quarter in which they sell their 200000th unit.
 

dbsb3233

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The credit phases out once the manufacturer reaches 200,000 units used in the United States.
With a projected worldwide production of 50k units we don't need to worry about Ford reaching this level of US sales with the Mach-e for a while; perhaps with the Transit or even the F-150e??
PHEVs count toward that total too, thus the Escape PHEV (and it's Lincoln counterpart, Corsair).

Still though, probably good through 2Q2022 at least.
 

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Clarification: the credit BEGINS phasing out after 200k units have been sold in the US. The $7500 is still available for another quarter, then it goes to $3750 for 2 quarters, and finally $1875 for 2 quarters. So, there is some credit available for over a year after the quarter in which they sell their 200000th unit.
To clarify, the credit is based on when Ford hits those thresholds but also when you purchase the car / put the car into service, correct?
 

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To clarify, the credit is based on when Ford hits those thresholds but also when you purchase the car / put the car into service, correct?
Correct. An extreme case to prove the point:
If a car built for dealer stock was made when the full $7500 was available, but the trigger and six quarters go by without being sold, that same car would not be eligible.

For the gamers out there: The rebate is not "soul-bound" to the car.
 

MachE2021

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According to this link:

https://evadoption.com/ev-sales/federal-ev-tax-credit-phase-out-tracker-by-automaker/

Ford still eligible for 75K+ of federal tax credits. Do I understand correctly that means all the Mach E(s) produced/sold this year and the next year will get the credit guaranteed? I believe Ford doesn't sell any other EVs at the moment? Except maybe upcoming Bronco?

What do you guys know/think?
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.
 
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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.
Next year means 2022, right? There is no way then can make changes for 2021 at this point when people already paying taxes for 2021?
 

eltonlin

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Next year means 2022, right? There is no way then can make changes for 2021 at this point when people already paying taxes for 2021?
everything is estimated until it’s time to file so anything goes really...
 
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supertramp

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everything is estimated until it’s time to file so anything goes really...
So, you are saying that $7500 tax credit for year 2021 is not confirmed yet? So, people are going to make one of the biggest financial decisions without knowing if they have it or not?
 

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So, you are saying that $7500 tax credit for year 2021 is not confirmed yet? So, people are going to make one of the biggest financial decisions without knowing if they have it or not?
The $7500 is not going to change for tax year 2021.

Some people are just trying start a ruckus because, well, we won't go into why.
 

dbsb3233

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So, you are saying that $7500 tax credit for year 2021 is not confirmed yet? So, people are going to make one of the biggest financial decisions without knowing if they have it or not?
It's current tax law, so yes, it's "confirmed".

That doesn't mean that Congress couldn't change the law and have it take effect for 2021, but that's highly unlikely. Not impossible, but highly unlikely. I wouldn't worry about it (I'm sure not).

When there's (rare) retroactive tax law changes, it's nearly always an addition, not a subtraction.
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