It the $7,500 tax credit cut-off by MODEL or manufacturer?

[Carsinmyblood]

The mess on Google is way too cluttered to find a clear answer to this. The short-hand sound bite isn't accurate enough.

The federal tax credit is indexed by battery size, and the MME clearly qualifies for the maximum of $7,500.

Is the 200,000 unit limit based on the total of any individual model, or regardless of model, by the manufacturer?

Manufacturer X:
Model R, 150,000 units
Model P, 150,000 units

Are they both eligible, or are they both ineligible?

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[generaltso]

It’s by manufacturer.

 

[timbop]

Here's a handy link to the IRS sales tracker site also:
https://www.irs.gov/businesses/irc-30d-plug-in-electric-drive-motor-vehicle-credit-quarterly-sales

 

[timbop]

Also, the 200k is a "soft" limit. For example if Ford sells their 200,000th plugin EV on February 3rd 2022, all Ford plugin EV's sold from Feb 4th 2022 through june 30th 2022 get the full $7500 tax credit regardless how many more are sold. Ford plugin EVs sold from July 1st 2022 through dec 31 2022 are eligible for $3750, which drops to $1875 from Jan 1 2023 to June 30 2023

 

[ARK]

See also this page on the EPA’s Fuel Economy website for a breakdown of each EV, whether it is still eligible for the federal tax credit, and the amount of federal tax credit it qualifies for.

It’s also notable that by ‘manufacturer’, the IRS seems to define it as company with common ownership, not just brand, because Cadillacs are also no longer eligible, and that must be mainly due to the Chevy Volt and Bolt.

 

[evfinder]

The mess on Google is way too cluttered to find a clear answer to this. The short-hand sound bite isn't accurate enough.

The federal tax credit is indexed by battery size, and the MME clearly qualifies for the maximum of $7,500.

Is the 200,000 unit limit based on the total of any individual model, or regardless of model, by the manufacturer?

Manufacturer X:
Model R, 150,000 units
Model P, 150,000 units

Are they both eligible, or are they both ineligible?

Th tax credit begins to fade out after the manufacturer sells a total of 200,000 plug-in cars. For Ford that would be the total of the Focus EV, C-Max Energi, Fusion Energi, and Mach-E combined.

 

[ChasingCoral]

This has also been discussed on other threads within the Forum (no need for Google).
https://www.macheforum.com/site/threads/fords-tax-credit-availability.1851/

 

[Carsinmyblood]

Thanks all.

Like most government programs, it's in the fine print.

 

[GrumblesTheDog]

See also this page on the EPA’s Fuel Economy website for a breakdown of each EV, whether it is still eligible for the federal tax credit, and the amount of federal tax credit it qualifies for.

It’s also notable that by ‘manufacturer’, the IRS seems to define it as company with common ownership, not just brand, because Cadillacs are also no longer eligible, and that must be mainly due to the Chevy Volt and Bolt.

Huh, didn't know about the manufacturer part. Too bad for the Lyriq or Hummer EV, if the credits aren't reinstated by the current administration...

 

[ARK]

Huh, didn't know about the manufacturer part. Too bad for the Lyriq or Hummer EV, if the credits aren't reinstated by the current administration...

Even if it is not reinstated, at least for people who want a luxury EV like the Cadillac Lyriq, I believe Lincoln is working on a 2022 model year vehicle with Rivian that will be called the Mark E.

I think this vehicle has a decent chance of benefiting from Ford’s full $7,500 federal tax credit before it begins to phase out. Not sure exactly when it is supposed to launch though.

EDIT: Looks like Rivian is out of the partnership, but Lincoln is moving ahead on its own.

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