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Make sure that your dealer is participating in any rebate or grant programs in your state

mburtsvt

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As we get closer to delivery…

Make sure that your dealer is participating in any rebate or grant programs in your state!

Here in California the dealer has to be signed up to participate in two different programs that I qualify for. I had a short talk with the sales manager of my dealer and he said that they will not be participating in both programs. This is an additional $7000 off the price of my Mach E in addition to the $7500 federal credit! I sent an email to the general manager to confirm this and awaiting his reply. It's been 6 days and no reply. If they do not - I will have to change dealers!

For reference the California rebate URL’s are below:

https://www.cleanfuelreward.com. This replaces the utility, (for me PG&E rebate program)

https://cleanvehiclegrants.org

Both of them are California only - check your states programs for participation. And if your installing dealer is participating.


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Follow up- I did change dealers. I canceled my original order and did a new order at another dealer.
 

krafty81

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As we get closer to delivery…

Make sure that your dealer is participating in any rebate or grant programs in your state!

Here in California the dealer has to be signed up to participate in two different programs that I qualify for. I had a short talk with the sales manager of my dealer and he said that they will not be participating in both programs. This is an additional $7000 off the price of my Mach E in addition to the $7500 federal credit! I sent an email to the general manager to confirm this and awaiting his reply. It's been 6 days and no reply. If they do not - I will have to change dealers!

For reference the California rebate URL’s are below:

https://www.cleanfuelreward.com. This replaces the utility, (for me PG&E rebate program)

https://cleanvehiclegrants.org

Both of them are California only - check your states programs for participation. And if your installing dealer is participating.


-------------------------

Follow up- I did change dealers. I canceled my original order and did a new order at another dealer.
Bigger discussion in regional forum. I bugged my dealer and he did join the cleanfuelreward one. The grant one is pretty income dependent.
 

DBC

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Follow up- I did change dealers. I canceled my original order and did a new order at another dealer.
Unsure how this would work if your MME was in transit.

I bugged my dealer and he did join the cleanfuelreward one. The grant one is pretty income dependent.
Was that Encinitas Ford? I remember someone saying they had done that. If yes then "Thanks".

I think your observation that the "grant one is pretty income dependent" is wrong. It's TOTALLY income dependent! :D The income limits are low for SoCal ($68K of income for a couple). The OP suggests he can use both the tax credit and the grant, but it's unclear how someone could have enough income to use the tax credit -- you can't roll if forward -- and qualify for the grant.
 
OP

mburtsvt

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Unsure how this would work if your MME was in transit.

Was that Encinitas Ford? I remember someone saying they had done that. If yes then "Thanks".

I think your observation that the "grant one is pretty income dependent" is wrong. It's TOTALLY income dependent! :D The income limits are low for SoCal ($68K of income for a couple). The OP suggests he can use both the tax credit and the grant, but it's unclear how someone could have enough income to use the tax credit -- you can't roll if forward -- and qualify for the grant.
Not totally true. I can use both, you just have to know how. The income based one will be based on my last years tax return (2020). My income is set up so that I only report my Social security income. Way under the 68K for a couple, (PS get a good financial adviser). At the end of 2021 I take a IRA withdrawal to cover the $7500 in tax credit, (around a $25K withdrawal), that I would qualify for the purchase of the Mach e in 2021. This along with Fords X plan, (yes I’m a member of Mustang Club of America for over 60 days by date of purchase) that’s another 2% off the SRSP. At the end of the day all of the credits amount to $15460.00 making the final cost to me of the Mach e, (premium,RWD,paint up grade) to 33040.00, ($48500.00 original SRSP). Plus tax.
 

RyZt

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Not totally true. I can use both, you just have to know how. The income based one will be based on my last years tax return (2020). My income is set up so that I only report my Social security income. Way under the 68K for a couple, (PS get a good financial adviser). At the end of 2021 I take a IRA withdrawal to cover the $7500 in tax credit, (around a $25K withdrawal), that I would qualify for the purchase of the Mach e in 2021. This along with Fords X plan, (yes I’m a member of Mustang Club of America for over 60 days by date of purchase) that’s another 2% off the SRSP. At the end of the day all of the credits amount to $15460.00 making the final cost to me of the Mach e, (premium,RWD,paint up grade) to 33040.00, ($48500.00 original SRSP). Plus tax.
What you said makes total sense. I'm glad it worked out for you. Your case is very peculiar, and can't be replicated by most of us.

For others, be aware that for the purpose of CVRP income cap, all income (taxable or not) are considered. You can see that https://cleanvehiclerebate.org/eng/income-eligibility lists tens of income sources. It also says to add up item 1-6 on 1040 on item 1-8 of schedule 1, which includes things like tax-exempt interest, qualified dividends, tax-exempt retirement plan distributions, etc.

I never looked into Clean Vehicle Grant, and have no idea.
 

DBC

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Not totally true. I can use both, you just have to know how. The income based one will be based on my last years tax return (2020). My income is set up so that I only report my Social security income. Way under the 68K for a couple, (PS get a good financial adviser). At the end of 2021 I take a IRA withdrawal to cover the $7500 in tax credit, (around a $25K withdrawal), that I would qualify for the purchase of the Mach e in 2021. This along with Fords X plan, (yes I’m a member of Mustang Club of America for over 60 days by date of purchase) that’s another 2% off the SRSP. At the end of the day all of the credits amount to $15460.00 making the final cost to me of the Mach e, (premium,RWD,paint up grade) to 33040.00, ($48500.00 original SRSP). Plus tax.
You are going to be sorely disappointed because your income numbers aren't going to generate a tax bill equal or more than $7500. You say your only income is SS and that this is far less than $68K. Since not all SS is taxed, your taxable SS will be far less than your far less than $68K SS income. Let's say that generates $25K in income. You can add $25K to this by means of an IRA withdrawal, but the standard deduction is more than that, so it's not going to add very much to your tax bill. My guess would be that with adjusted SS income of $25K and a $25K IRA withdrawal, after the standard deduction of $27K+ you might end up with a $1000 tax bill. That's just a guess but it's in the ballpark, and a long way from a tax bill of $7500, which is what you need.

Plus the grant requires you get a letter before purchasing your vehicle, and the process of getting the letter can take longer than 90 dates. That rules out using the grant for the MME in the near future.
 
OP

mburtsvt

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You are going to be sorely disappointed because your income numbers aren't going to generate a tax bill equal or more than $7500. You say your only income is SS and that this is far less than $68K. Since not all SS is taxed, your taxable SS will be far less than your far less than $68K SS income. Let's say that generates $25K in income. You can add $25K to this by means of an IRA withdrawal, but the standard deduction is more than that, so it's not going to add very much to your tax bill. My guess would be that with adjusted SS income of $25K and a $25K IRA withdrawal, after the standard deduction of $27K+ you might end up with a $1000 tax bill. That's just a guess but it's in the ballpark, and a long way from a tax bill of $7500, which is what you need.

Plus the grant requires you get a letter before purchasing your vehicle, and the process of getting the letter can take longer than 90 dates. That rules out using the grant for the MME in the near future.
Not really…. I’ll take out whatever I need to to get the $7500 credit. It's the equivalent of a IRA withdrawal with no tax consequences. Had I done it this year I would have to pay 24% on any IRA withdrawal. My wife and I have duel social security income last year that came to $44K. As far as the grant letter - I put my mach e order in on Dec 13 of 2020- I do not expect it for 90 plus days. I have all ready started the application process. You are right - I will have to take out more than the $24K to cover the credit, but at the end of the day - Its basally a tax free withdrawal from an IRA and I get a Mach E.
 



 









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