Incentives in WA for a BEV/EV purchase in 2021

[kgautam28]

I finalized the loan with my dealer at Bill Pierre Ford in Seattle today, traded in my 2016 Mustang for a 2021 First Edition MME. The dealer was kind enough to also give me a loaner car until MME arrives in 2 weeks.

My credit score's a bit low, so i received a 3.99% on 60 months finance. $0 cash down as I was trading in.

Incentives available in Washington state for the MME and in general.

1. $7500 qualifying tax credit.
2. Tax exemption Up to $25,000 of the sales or lease price (i.e. $1700 in WA at 6.8% sales tax) : https://dor.wa.gov/taxes-rates/tax-incentives/incentive-programs - Currently applicable for MME "Select" trim only.
3. $500 rebate on top chargers from PUD: https://www.snopud.com/?p=3808
4. 30% tax credit on charger cost and installation charges.

Total upto $10,000 in cash back/incentives.

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[back_at_it_19]

I finalized the loan with my dealer at Bill Pierre Ford in Seattle today, traded in my 2016 Mustang for a 2021 First Edition MME. The dealer was kind enough to also give me a loaner car until MME arrives in 2 weeks.

My credit score's a bit low, so i received a 3.99% on 60 months finance. $0 cash down as I was trading in.

Incentives available in Washington state for the MME and in general.

1. $7500 qualifying tax credit.
2. Tax exemption Up to $25,000 of the sales or lease price (i.e. $1700 in WA at 6.8% sales tax) : https://dor.wa.gov/taxes-rates/tax-incentives/incentive-programs
3. $500 rebate on top chargers from PUD: https://www.snopud.com/?p=3808
4. 30% tax credit on charger cost and installation charges.

Total upto $10,000 in cash back/incentives.

Unfortunately the sales tax break only applies to the first $25k of value and only applies to cars valued at $45k or less. Zero help for a FE or any AWD ER.

“In addition, the vehicle must be sold or valued at $45,000 or less if new and $30,000 or less if used.

Manufacturer and distributor rebates are part of the selling price. The amount of the rebate is not allowed to be used in any way to reduce the sales price or value.

The selling price includes delivery charges or any other services necessary to complete the sale (RCW 82.08.010).

Dealers may not deduct the value of any trade-in vehicle or any federal tax credits that may accrue to the lessor when determining exemption eligibility.”

https://dor.wa.gov/content/clean-alternative-fuel-and-plug-hybrid-vehicles-salesuse-tax-exemptions

 

[kgautam28]

Unfortunately the sales tax break only applies to the first $25k of value and only applies to cars valued at $45k or less. Zero help for a FE or any AWD ER.

“In addition, the vehicle must be sold or valued at $45,000 or less if new and $30,000 or less if used.

Manufacturer and distributor rebates are part of the selling price. The amount of the rebate is not allowed to be used in any way to reduce the sales price or value.

The selling price includes delivery charges or any other services necessary to complete the sale (RCW 82.08.010).

Dealers may not deduct the value of any trade-in vehicle or any federal tax credits that may accrue to the lessor when determining exemption eligibility.”

https://dor.wa.gov/content/clean-alternative-fuel-and-plug-hybrid-vehicles-salesuse-tax-exemptions

I see that the MME was listed in the list of qualified vehicles, does that mean its for the lower costing select model?

 

[back_at_it_19]

I see that the MME was listed in the list of qualified vehicles, does that mean its for the lower costing select model?

That’s my understanding, but I haven’t had that convo with dealer finance yet. Has to be a qualifying EV and be under the price max. No tax breaks I guess if you can afford a car over $45k.

 

[back_at_it_19]

That’s my understanding, but I haven’t had that convo with dealer finance yet. Has to be a qualifying EV and be under the price max. No tax breaks I guess if you can afford a car over $45k.

And in case anyone not from WA is reading this, yes, our cars are taxed at the standard sales tax rate which in big counties and cities about 10%. A huge hit.

 

[kgautam28]

That’s my understanding, but I haven’t had that convo with dealer finance yet. Has to be a qualifying EV and be under the price max. No tax breaks I guess if you can afford a car over $45k.

Damn, I asked my dealer once again, probably they were not fully aware about it. Will get back on this.

 

[DanHo]

Yes, that's how it works. Price of a new car has to be <=$45K. You can't use a trade-in to reduce the price. As mentioned above, only the Select standard range model currently qualifies for this incentive from the state.

Personally, the cap is crap. I guess if I wanted to buy a Bolt I would be happy.

 

[BSTheo]

And in case anyone not from WA is reading this, yes, our cars are taxed at the standard sales tax rate which in big counties and cities about 10%. A huge hit.

So I haven't bought a vehicle in nearly 20 years. Does that mean the "Dealer Selling Price" on the Order summary does not include the 10% tax?

 

[MailGuy]

So I haven't bought a vehicle in nearly 20 years. Does that mean the "Dealer Selling Price" on the Order summary does not include the 10% tax?

Nope, not included. $6,123 in tax on my FE, with X-Plan.

 

[silverelan]

Some people avoid Seattle-area sales taxes by purchasing in other counties.

 

[back_at_it_19]

Some people avoid Seattle-area sales taxes by purchasing in other counties.

Some people avoid Seattle-area sales taxes by purchasing in other counties.

and no u can’t avoid the tax by buying out of state. They will require payment of the sales tax upon registration of it’s not already paid. And if you’re in the transit zone, your tabs will cost you over $700 additional based on value of the car.

 

[DanHo]

and no u can’t avoid the tax by buying out of state. They will require payment of the sales tax upon registration of it’s not already paid. And if you’re in the transit zone, your tabs will cost you over $700 additional based on value of the car.

Exactly! Been there, done that with my Tundra. It's finally come down a bit after a few years.

 

[Bookworm214]

Nope, not included. $6,123 in tax on my FE, with X-Plan.

Seeing this makes up for the fact that we have no incentives in SC for EVs because our sales tax on vehicles is capped at $500. That makes for a healthy "incentive" to buy any vehicle in SC.

 

[back_at_it_19]

Seeing this makes up for the fact that we have no incentives in SC for EVs because our sales tax on vehicles is capped at $500. That makes for a healthy "incentive" to buy any vehicle in SC.

Wow! Huge bonus!

 

[kgautam28]

So I haven't bought a vehicle in nearly 20 years. Does that mean the "Dealer Selling Price" on the Order summary does not include the 10% tax?

Yes, doesn't include tax 10%

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