New EV incentive excludes loaded GTPE?

PNWEV

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I read an article earlier that said there’s a new bill being considered that would change the $7500 tax credit. Importantly, it limits the credit to suvs costing less than $69k.
https://www.google.com/amp/s/amp.detroitnews.com/amp/8267723002

So, msrp plus delivery fee puts a loaded GTPE with sun roof and the co-pilot 360 2.0 with one of the standard colors of paint is $69440.
Does that mean that if I don’t take delivery of the vehicle this calendar year I lose the tax credit? Is it possibly going to be grandfathered in?
I know that the answers are speculative at this point, but I’m hoping someone may have some insight and I don’t want to have the car delivered only to find out that it’s actually costing me $12500 more than a standard gt with the same options would, because at that point it’s not worth the extra money.
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Kamuelaflyer

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It’s not a law yet. In fact it’s a long ways from being one at the present time.

Also, any limit on price in order to claim the tax credit would probably reference only tge MSRP and nothing else.

Stay tuned.
 
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PNWEV

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It’s not a law yet. In fact it’s a long ways from being one at the present time.

Also, any limit on price in order to claim the tax credit would probably reference only tge MSRP and nothing else.

Stay tuned.
Thank you for the quick reply. I was wondering about that. Msrp only I’m good to go and will be stoked.
 

Kamuelaflyer

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Thank you for the quick reply. I was wondering about that. Msrp only I’m good to go and will be stoked.
Honestly, none of us know what’s going to happen and it’s all politics anyway. And the discussion of politics here never ever ends well. So …
 


ARK

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Negative tax changes are also usually not done retroactively, so if you buy the GTPE at some point, and Congress later puts a cap on vehicle tax credit MSRP, I’d be really surprised if they write the law in such a way where the rug is pulled out from under you, and you can no longer claim a credit even though you qualified at the time of purchase.
 

peoples1234

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As was mentioned earlier, any changes that increase the amount of tax due would be prospective, not retrospective. Likely effective for a calendar year (so effective for 2022, filed in 2023).
 

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Negative tax changes are also usually not done retroactively, so if you buy the GTPE at some point, and Congress later puts a cap on vehicle tax credit MSRP, I’d be really surprised if they write the law in such a way where the rug is pulled out from under you, and you can no longer claim a credit even though you qualified at the time of purchase.
While a car might be ordered, you haven't legally purchased the car until you sign the papers and take possession. Anything purchased in 2021 would be under the current rules...2022 new rules. But MSRP on the GTPE building with glass roof and all options is $68,940 so it's moot even if this ends up becoming law. I'm sure the SUV cutoff price is by design to let Ford still slip right under.
 

Dancefreak

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As was mentioned earlier, any changes that increase the amount of tax due would be prospective, not retrospective. Likely effective for a calendar year (so effective for 2022, filed in 2023).
New proposed legislation changes it from a tax credit to point-of-sale rebate.
 

Dancefreak

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which makes way more sense imo.
Technically speaking it's still a tax credit, but you'll get that money right away when you buy the car. The downside is if you didn't actually qualify and don't have enough tax liability when you file, you would probably owe it back at that time.
 

ARK

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While a car might be ordered, you haven't legally purchased the car until you sign the papers and take possession. Anything purchased in 2021 would be under the current rules...2022 new rules. But MSRP on the GTPE building with glass roof and all options is $68,940 so it's moot even if this ends up becoming law. I'm sure the SUV cutoff price is by design to let Ford still slip right under.
I agree, the day of order does not count as the 'purchase' date, the date it arrives at the dealership and the paperwork is signed and the person drives off the lot is what counts. Thank you for clarifying.

But even for 2022, I think it might change midyear if Congress does not pass the law in the next few months. Like if the current rules stay in effect and someone buys in January 2022, I really don't think in March 2022, Congress will pass a law that says 'sorry, everyone who bought the vehicle in January 2022 can't get the credit anymore when they do taxes next year if the vehicle they purchased is above a newly created tax credit cutoff point'.
 

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Technically speaking it's still a tax credit, but you'll get that money right away when you buy the car. The downside is if you didn't actually qualify and don't have enough tax liability when you file, you would probably owe it back at that time.
it's still tied to the tax liability? that's counterproductive. (imo)
 

Dancefreak

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I agree, the day of order does not count as the 'purchase' date, the date it arrives at the dealership and the paperwork is signed and the person drives off the lot is what counts. Thank you for clarifying.

But even for 2022, I think it might change midyear if Congress does not pass the law in the next few months. Like if the current rules stay in effect and someone buys in January 2022, I really don't think in March 2022, Congress will pass a law that says 'sorry, everyone who bought the vehicle in January 2022 can't get the credit anymore when they do taxes next year if the vehicle they purchased is above a newly created tax credit cutoff point'.
Very true. But the status quo would remain if it's not passed. I don't think something passing mid next year is an option as it will be part of the budget reconciliation. It's not included this year it's probably dead.
 
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kennethjk

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I agree, the day of order does not count as the 'purchase' date, the date it arrives at the dealership and the paperwork is signed and the person drives off the lot is what counts. Thank you for clarifying.

But even for 2022, I think it might change midyear if Congress does not pass the law in the next few months. Like if the current rules stay in effect and someone buys in January 2022, I really don't think in March 2022, Congress will pass a law that says 'sorry, everyone who bought the vehicle in January 2022 can't get the credit anymore when they do taxes next year if the vehicle they purchased is above a newly created tax credit cutoff point'.
Very true. But the status quo would remain if it's not passed. I don't think something passing mid next year is an option as it will be part of the budget reconciliation. It's not included this year it's probably dead.
I found this blurb somewhere. Chances of something going thru of this magnitude, 3.5 trillion is small.

“The bill says individual taxpayers must have an adjusted gross income of no more than $400,000 to get the new EV tax credit. It would limit the EV credit to cars priced at no more than $55,000, while trucks could be priced up to $74,000.

But those limits may face pushback.

Last month, the Senate in a non-binding amendment narrowly voted in favour of prohibiting taxpayers from claiming EV tax credits if they make more than $100,000 annually or if vehicles cost more than $40,000.”

that being said when they put a bill together and go thru reconciliation they will usually say this applies to all purchases after a certain date , either dat b
ill is approved or a date certain that they pick
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