No Tax Credit for my loaded GTPE?

[Mach1E]

That’s correct, non-refundable here means if your tax liability for the year is less than $7,500, before looking at what you did in terms of withholding, is when you lose part of the credit.

It certainly is refundable in the sense that the IRS will send you a check if you owed at least $7,500 in taxes for the year.

But if for example you are retired and had $0 income for the year and therefore owe $0 in taxes for the year and had $0 in withholding because there is nothing to withhold, the government won’t cut you a check.

Yup, and the above people should try to create some tax liability if they can. Converting some IRA or 401k assets to Roth is probably the easiest way. But there is a December 31 deadline for that.

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[amtrucker22]

I'm going to disagree with the consensus here. I believe the MSRP limits will be the total MSRP, not the base price. If it were only the base MSRP, it would be too easy to game the system - the manufacturer could simply lower the base price and throw more money into options. Heck, Ford could structure GTPE pricing to use the plain MME base and add $35K for the "GTPE Package". Every Mach-E could have the same base MSRP regardless of how it was built!

No EV sold in the US would have a base MSRP over the limit. "Porsche Taycan...base MSRP $54,500....options $80,000". ?

JMHO....

This is my beliefs also.

 

[ARK]

I'm going to disagree with the consensus here. I believe the MSRP limits will be the total MSRP, not the base price. If it were only the base MSRP, it would be too easy to game the system - the manufacturer could simply lower the base price and throw more money into options. Heck, Ford could structure GTPE pricing to use the plain MME base and add $35K for the "GTPE Package". Every Mach-E could have the same base MSRP regardless of how it was built!

No EV sold in the US would have a base MSRP over the limit. "Porsche Taycan...base MSRP $54,500....options $80,000". ?

JMHO....

This is my beliefs also.

Seems reasonable, Tesla did something like this in Canada to game tax credit rules.

 

[Nomation]

Our lawmakers need to take an automotive history lesson. Automakers need people to buy the higher priced vehicles so they can develop some economy of scale, cost reductions or VA/VE initiatives to then lower the cost of those components so they can make them available at lower price points. For example(s), cruise control, ABS breaks, air conditioning, etc, were only available on the luxury models until enough were sold that suppliers and/or manufacturers could afford to invest in more efficient machines, processes or tooling to be able to produce those options at a lower price point. Hence making them affordable for inclusion into less expensive vehicles.

If we don’t sell EVs (at any price point), we will not continue to develop battery technologies and electric motors, for instance.

Automakers will only lose money for so long before they abandon research in a vehicle that no one is buying. So the government can either give money to the automakers to fund research (not preferable) or give it to ANY American willing to buy the vehicle to keep this cycle going.

Politicians want to stop climate change and will allocate Billions in Infrastructure Bills to “study” climate change, BUT then don’t care about off-setting carbon emissions if the vehicle is prices over $69,000???? That is crazy!

Come on! Really....? You think Politicians can stop climate change. NOT

 

[devmach-e]

It would be nice if Congress somehow accounted for people who already ordered their vehicles before changing the rules out from under them, but unfortunately, I am not too optimistic that Congress will do that if they enact their proposed reform as is.

It isn’t about what is available now. It is about what will be available in the future. Congress has no idea what an individual tax payer has on order. Nor should they care. What they care about is incentivizing manufacturers to produce a vehicle that is better for the environment and to encourage consumers to buy those new vehicles.

 

[Parasmoney]

Right, still about $500 short ?

Hopefully there will be national or local incentives available when your car is delivered to bring the price down. When I placed an order early October, there was a $2k incentive happening plus the dealer allowed me to get the xplan pricing on the offer. Dealer said if there is another incentive going on at the time of delivery, I will qualify for that as well. Keeping my fingers crossed. Do you or a friend or family member qualify for xplan pricing? Maybe that can bring the price down for you.

 

[RickMachE]

Hopefully there will be national or local incentives available when your car is delivered to bring the price down. When I placed an order early October, there was a $2k incentive happening plus the dealer allowed me to get the xplan pricing on the offer. Dealer said if there is another incentive going on at the time of delivery, I will qualify for that as well. Keeping my fingers crossed. Do you or a friend or family member qualify for xplan pricing? Maybe that can bring the price down for you.

Your dealer told you incorrectly, or you misunderstood.

Dealers can lock incentives at time of ordering. Then, at time of delivery, you can compare the pool of incentives at time of order against the pool of incentives at time of delivery, and pick one. You do not get to cherry pick the best incentives from both periods.

X-Plan of course is not an incentive, it's a discount plan. This also goes for interest rates, a dealer cannot lock the interest rate at time of order and give you that rate 6 - 8 months later at time of delivery.

 

[Rudy Bega]

Not locked in yet, and there is a possibility Ford can adjust their prices accordingly.

Maybe Ford can get creative some way also. Tesla allows you to add FSD service after the delivery for the same price. Basically this can knock $10k from MSRP which can in turn be added the same day you take delivery.

Ford has to adjust if this gets passed,

Hopefully there will be national or local incentives available when your car is delivered to bring the price down. When I placed an order early October, there was a $2k incentive happening plus the dealer allowed me to get the xplan pricing on the offer. Dealer said if there is another incentive going on at the time of delivery, I will qualify for that as well. Keeping my fingers crossed. Do you or a friend or family member qualify for xplan pricing? Maybe that can bring the price down for you.

Thanks for your comments! I can get a X plan. I don’t want to give up any options and will probably ride this to pick day, January I guess after a 11/29 production date. 7500 is a big deal to me as I potentially shift to my first EV.

 

[rapidredmustang]

First, I'm not sure when the Build Back Better Act would take effect? If it passed today, would it take effect for the 2021 tax year?

Secondly, while the topic is still open for debate (the details can change in or out of your favor) the most recent update seems to favor you getting a tax credit, and potentially a higher one than just $7500.

https://www.cnet.com/roadshow/news/ev-tax-credit-changes-president-biden-price-cap-trucks-suvs/

The new language allows for vans, trucks and SUVs with a manufacturer's suggested retail price of up to $80,000 to qualify for the $12,500 credit.

A previous draft of the bill, on page 1868, outlines how the $12,500 tax credit would be calculated.
GovInfo HR5376
It includes a base amount ($3000), an amount for battery capacity ($4500) and then US manufacture ($4500, which the Mach-E wouldn't qualify for) and another for domestic content ($500, which the Mach-E might qualify for).

So if that doesn't change, and the $80K ends up being in the bill, any build of the GTPE will be eligible for between $7500-$8000.

 

[Mach1E]

First, I'm not sure when the Build Back Better Act would take effect? If it passed today, would it take effect for the 2021 tax year?

Secondly, while the topic is still open for debate (the details can change in or out of your favor) the most recent update seems to favor you getting a tax credit, and potentially a higher one than just $7500.

https://www.cnet.com/roadshow/news/ev-tax-credit-changes-president-biden-price-cap-trucks-suvs/



A previous draft of the bill, on page 1868, outlines how the $12,500 tax credit would be calculated.
GovInfo HR5376
It includes a base amount ($3000), an amount for battery capacity ($4500) and then US manufacture ($4500, which the Mach-E wouldn't qualify for) and another for domestic content ($500, which the Mach-E might qualify for).

So if that doesn't change, and the $80K ends up being in the bill, any build of the GTPE will be eligible for between $7500-$8000.

Unless they categorize it as a station wagon (from other thread discussion).

We won’t know until it passes and they come out with a list of “eligible vehicles.”

 

[Jack Roberts]

Read the potential new law on EV Tax Credits sponsored by Michigan Senators and it currently looks like the “SUV” category has a top end of $69,000. My 2021 GTPE comes in at $69,840 with Rapid Red, Pano, Camera and Protection Kit. BTW, Tesla Y comes in under 69. What now?

They have changed to to $80k for SUV’s. Hopefully that’s what will pass. My Rapid Red GTPE is due at the dealership on the 21st.

 

[dbonsett]

I don't know the answer to your question, but a question of my own: Why do lawmakers feel they need to put a price limit on a car when it comes to a tax credit? I just don't get it. Isn't the incentive to get you to buy an EV rather than an ICE car? Who cares how much it costs.

Years ago I bought a Prius. Got a tax deduction. Then they came back and charged me a tax because it was using less gas therefore not paying enough tax as non-hybrids to maintain the roads. Govt.

 

[kennethjk]

They have changed to to $80k for SUV’s. Hopefully that’s what will pass. My Rapid Red GTPE is due at the dealership on the 21st.

More importantly they have to change the current classification of the Mustang from station wagon to SUV, otherwise the 55k proposed threshold if approved with be even worse

 

[nvabill]

I find the Union Labor stipulation interesting in the bill, I hate that these things are built in Mexico, not just because of the lost tax break but because I want American made. Unfortunately we have no choice where Ford decides to build the Mach E!

 

[jfwyant1966]

is destintation fee part of the MSRP caluclation for the cap?

Where do you get that screen from? None of the ones I look at show that layout.

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