IRS Letter & ADA Rebate

[MailGuy]

As has been discussed on so many other threads you also of course need the tax liability to offset the credit.

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[BDC]

Thanks. But you're sure about that letter? I read you need to submit that with the tax form.

Do you have a link for where you read that? Nothing I have seen has ever required it, and in fact the government is pretty loose about proving the car even qualifies. If the manufacturer tells you it does on their website, that is considered good enough for the credit. Maybe you are confusing this with some other incentive, like a state one? But, as always with tax matters, don't take my word for it, talk to your tax professional who will be able to definitively answer what documentation you need. FWIW, I have no letter, and plan to get the credit when I file next year.

 

[Illinibird]

One last time on the $100 ADA rebate; this offer is STILL in effect? I read somewhere that Ford discontinued it. Am I wrong?

 

[Illinibird]

Do you have a link for where you read that? Nothing I have seen has ever required it, and in fact the government is pretty loose about proving the car even qualifies. If the manufacturer tells you it does on their website, that is considered good enough for the credit. Maybe you are confusing this with some other incentive, like a state one? But, as always with tax matters, don't take my word for it, talk to your tax professional who will be able to definitively answer what documentation you need. FWIW, I have no letter, and plan to get the credit when I file next year.

No, you're right. I reread the tax form quickly and it's between Ford and IRS. We just fill out Form 8936 and submit with tax return. And yes, I'll have no trouble getting the credit with my income level.

 

[Timelessblur]

How about the IRS letter for the $7500 credit?

No such thing. When you do your taxes you will fill out a form and all the IRS may do is ask for proof that you bought an EV. Also if you install a home charger hold onto the receipt as you can get 30% back of the home charger plus the cost to do the wiring back as tax credit as well. For example when I do my 2021 taxes I will will claim 7500 tax credit for the Mach E. I will get another 400ish in credit for getting the wiring done for the Nema 14-50 plug I installed and then another 100-200ish for my charging unit that I bought for a grand total in 2021 of a little over 8000 in tax credits. (charger was 500ish and the wiring for my house costed me little over 1200)

 

[benk016]

When do the 22,000 Rewards Points show up in my Rewards App? When/how does the 250 kWh of electricity show up and where?

It would be nice if I had definitive answers before I see him at noon. Thanks.

The rewards points will show up in your account a little while after purchase. Mine took a week or so. It basically was after Ford completed the registration in their systems and officially listed the car as owned by you in their system.

The 250kw showed up after I activated my connected services, which may not work immediately after delivery either. I didn't try to setup connected services until the next day when I was home.

 

[louibluey]

There is no letter for the federal tax credit. You just claim it on your taxes. If they need to verify through an audit they would just need proof of when you bought the car and if you still owned it

Practically speaking, most folks will still own their MME, but that is not an IRS requirement that you still own it. Only that it was not purchased for sale or some kind of fraud on the IRS, e.g. those who try for a profit by buying an EV, taking the $7,500 credit, and then selling, which is basically buying to sell, and likely is a fraud on the IRS.

For example, if someone bought a MME in good faith for personal/family use, then 3-9 mos. later fell into a bad economic situation and had to sell the MME, presumably they are still entitled to the $7,500 credit. This would need to be reviewed by a tax professional or IRS opinion, only point is, there probably are situations where you do not need to still own the MME.

Note, that reasoning does not apply to some state rebates, such as in NY, where not matter what the reason, if you sell the EV or PHEV before 3 years, you have to refund the state for the pro-rated part of the incentive (or, at least report the sale, they might waive the payback in some terrible personal situations).

 

[NoVAguy]

There is no letter for the federal tax credit. You just claim it on your taxes. If they need to verify through an audit they would just need proof of when you bought the car and if you still owned it

Edit: Removed! Posted the exact same comment as @louibluey who beat me to it by SECONDS

 

[Brian-e]

As others have mentioned, the Tax forms will ask for your VIN number.

My dealership refused to give me the $100 ADA at the time of purchase and insisted I get it later when I buy the ADA from them. I wrote on my Customer Incentive statement that I didn’t receive the credit at time of purchase and to please send a check if I was suppose to get it. I received a check from Ford a couple weeks later. One note - when I called Ford (twice), no one in multiple departments could find anything about the incentive - even when providing the incentive number.

Regarding the 500 kWh - I didn’t pre-order, but did receive 500.

The 22K of reward points was on my wife‘s account, not mine. Just an FYI.

 

[CHeil402]

Thanks. But you're sure about that letter? I read you need to submit that with the tax form.

No you just need to include the VIN of the car with the IRS form. Nothing from the dealer.

 

[mixduptransistor]

Practically speaking, most folks will still own their MME, but that is not an IRS requirement that you still own it. Only that it was not purchased for sale or some kind of fraud on the IRS, e.g. those who try for a profit by buying an EV, taking the $7,500 credit, and then selling, which is basically buying to sell, and likely is a fraud on the IRS.

For example, if someone bought a MME in good faith for personal/family use, then 3-9 mos. later fell into a bad economic situation and had to sell the MME, presumably they are still entitled to the $7,500 credit. This would need to be reviewed by a tax professional or IRS opinion, only point is, there probably are situations where you do not need to still own the MME.

Note, that reasoning does not apply to some state rebates, such as in NY, where not matter what the reason, if you sell the EV or PHEV before 3 years, you have to refund the state for the pro-rated part of the incentive (or, at least report the sale, they might waive the payback in some terrible personal situations).

So, I thought that there was a minimum time of ownership, but you're right, there is not a requirement in the documentation of the IRS that you own it for a minimum amount of time. You would need to convince the auditor that you did not intend to sell it if you did in fact sell it within a short period of time, though

 

[CHeil402]

One last time on the $100 ADA rebate; this offer is STILL in effect? I read somewhere that Ford discontinued it. Am I wrong?

I got it on April 3, so I doubt it would change mid-month. I was prepared to bring the rebate information with me, but after the car showed up and I did the online checkout process, it automatically added it (and my $2,500 Ford Options rebate) to my details sent to the dealership.

Rebate info (but didn't need it): https://www.macheforum.com/site/threads/100-early-adopter-incentive-cancelled.3386/post-106098

Check out process (only active after dealership takes the car out of transport mode): https://www.macheforum.com/site/thr...out-for-mach-e-heres-what-it-looks-like.4859/

 

[BadgerGreg]

I purchased a Mach E last night and am going back today to pick it up.

Congrats! I pick up mine tomorrow (it's arriving at the dealership today). I trust we'll both be putting on some miles this weekend...

 

[JCHLi]

Regarding the $100 rebate, my understanding is you can either get it from Ford (via prepaid card) or via the dealer taken off the price.

Either way they have a form you need to sign indicating the desired disposition of the rebate.

 

[generaltso]

One last time on the $100 ADA rebate; this offer is STILL in effect? I read somewhere that Ford discontinued it. Am I wrong?

The $100 ADA rebate is still in effect. It likely won't be discontinued until BlueCruise is available. It should get applied to your purchase, but some dealers don't seem to know that. If they refuse to apply it, just make sure it gets added to the IOU sheet as still owed to you.

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