November 3rd 2021 Revised Tax incentives for EVs from House of Reps.

veronicablack

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Sure, but Ford doesn't even have to change the law. I'm sure there's some way they can file an errata or something with EPA that says it was misclassified - especially since Ford has always marketed it as an SUV.
It'll definitely be interesting (despite the personal frustration and annoyance) to see how the situation plays out if this ends up passing as-is.
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RMoore

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Even if folks can get under the car price thresholds I suspect that there will be some here who will bump up against the income limits.
 

kkgg

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Probably not a bad idea for a good amount of people who were relying on this tax credit. Although there's always the risk you somehow get a Tesla unexpectedly quick before year end and then the car wouldn't be eligible for any tax credit either.
I wish an authorized ford rep will watch this and fix it ASAP
 
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Draconfier

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So this still reads like a tax credit? That's disappointing as I was hoping for it to be a point of sale rebate like the $750 in California (formerly $1500). Or am I reading it incorrectly (I only read the linked article not the bill verbiage)?
No, treated differently as you can assign the credit towards the vehicle payment under section 36c pg 1494 seen here.

Ford Mustang Mach-E November 3rd 2021 Revised Tax incentives for EVs from House of Reps. Screenshot_20211103-210519_Adobe Acrobat
 

yngwenli

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I'm not a CPA but I work in accounting. Once it's established how the MME qualifies (and it will pretty quickly), there's likely not much you can do. Yes, the IRS is a lot spookier to people than they really are (I've met multiple auditors in my life and they've all been genuine and nice people who aren't trying to bust anyone's balls for no reason). But this isn't really some nuanced tax situation. The car either falls under SUV classification or it doesn't. And if this bill passes, I'm sure Ford will find out quickly which it is. No amount non existent tax magic will get around that.

And it's also possible that Ford gets them to classify it as a small SUV as well. Even with that other message about all SUVs/trucks being $80k limit soon and cars 55k, I think it's dumb that there is even a difference.

Also, is a station wagon even a sedan?

Why is a station wagon more a sedan than an SUV. Guess I can look that up, but maybe you know already and can share.
 
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Ma9573

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No, treated differently as you can assign the credit towards the vehicle payment under section 36c pg 1494 seen here.

Screenshot_20211103-210519_Adobe Acrobat.jpg
Thanks! So it would seem that as long as the Mach E is classified as an SUV this will actually be a benefit to everyone making under the income threshold, since you no longer need the tax liability to get the full $7500, and will be financing less of the cost of the car (assuming most people don't preemptively put down the $7500). That's an improvement I guess.

Without getting political about the union thing, it also makes the Bolt a freaking steal at like $23k for the base model (although I would expect GM to raise the price even though LG is covering most of the recall costs).
 

Omar

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Just posted a few minutes ago on CNBC.
https://www.cnbc.com/2021/11/03/dem...tax-breaks-for-evs-that-cost-up-to-80000.html
The newly revised plan from the House of Representatives Ways and Means Committee RULES COMMITTEE PRINT 117–18 TEXT OF H.R. 5376, BUILD BACK BETTER ACT

$4000 base amount
$3500 amount for vehicles with greater than 40kwh battery capacity and less than 2.5 gallons gas tank
$4500 for final domestic assembly (vehicle made in US by Union representative workers)
$500 for domestic content assembly (battery produced in US)

Vehicle cost not to exceed $80,000 for Van's, SUVs, Pickup trucks. $55,000 for other vehicles.

Income thresholds of $500k married filing joint, $375k head of household, or $250k filing single.

Not more than 1 credit allowed per tax year.

Credit can be automatically assigned to the seller (must be registered) towards purchase of vehicle.

Date of effect: December 31, 2021 or when the Bill takes effect. (Whichever happens last)

Verbiage of credits for Used Evs also included in bill, 2 & 3 wheeled vehicles, charging station credits, commercial usage, etc.

The Proposed bill extends the EV credit system for another 10 years and eliminates the 200,000 vehicle restriction.

Screenshot_20211103-183940_Chrome.jpg

Screenshot_20211103-183957_Chrome.jpg

The full bill is available here. Pg 1480-1540

https://rules.house.gov/sites/democrats.rules.house.gov/files/BILLS-117HR5376RH-RCP117-18.pdf
Looking at this the Mach-E will only qualify for 7500 and 500 more after the battery in Michigan go online. The other 4500 will not qualify because the vehicle is made in MĂ©xico.
 

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When I bought my Macan several years ago they were very careful not to call it a car and they specifically called it a truck.

I believe it depends how it is made and crash requirements may be different.

I am a CPA and there will most likely be a list of cars that qualify as an SUV or truck. Just like there is now a list of what cars qualify for the existing tax credit.
 

veronicablack

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And it's also possible that Ford gets them to classify it as a small SUV as well. Even with that other message about all SUVs/trucks being $80k limit soon and cars 55k, I think it's dumb that there is even a difference.

Also, is a station wagon even a sedan?

Why is a station wagon more a sedan than an SUV. Guess I can look that up, but maybe you know already and can share.
Definitely a possibility on Ford's part. But the reason I say a small station wagon is a car is because that's how the fueleconomy.gov website classifies it. Which is from the EPA. Which is what this new bill seems to defer to (although there does seem to be some wiggle room in the bill to differ based on my layperson understanding of the text). So who knows. But I do think it's good that people interested in the MME are aware of the possibility of losing the credit.
 

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Y’all need to calm down a bit. It’s an SUV. If you think that Ford was going to let their marquee electric vehicle be priced out of rebates when they spend millions of dollars on lobbying members of congress…I don’t know what else to say.
 

DRuth086

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This is good news for some, but ultimately many people aren’t even going to be able to take advantage of the full $7,500 because their tax liability isn’t that high. I’ll be getting far less it seems. It’s unfortunate how many people think the government is just writing them a $7,500 check when tax time comes.
 

yngwenli

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Definitely a possibility on Ford's part. But the reason I say a small station wagon is a car is because that's how the fueleconomy.gov website classifies it. Which is from the EPA. Which is what this new bill seems to defer to (although there does seem to be some wiggle room in the bill to differ based on my layperson understanding of the text). So who knows. But I do think it's good that people interested in the MME are aware of the possibility of losing the credit.

Wasting more time on this, I think a lot of this has to do with the 'Mustang' being a coupe and the platform the Mach-e car was developed from. Looking at wiki, it was based on

https://en.wikipedia.org/wiki/Ford_Mustang_Mach-E

The Mustang Mach-E is built on the Global Electrified 1 (GE1) platform, which is a heavily reworked version of the C2 platform that is used on the fourth generation Focus and third generation Kuga/fourth generation Escape.


Since those other EVs were cars, it got lumped into the station wagon category. As that last post said, I do think people are over-reacting if this thing won't qualify as an SUV...

Doesn't change my situation, but again, I find it impossible the Mach-E can be classified as a 'Sedan'.
 

Sealevel

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And it's also possible that Ford gets them to classify it as a small SUV as well. Even with that other message about all SUVs/trucks being $80k limit soon and cars 55k, I think it's dumb that there is even a difference.

Also, is a station wagon even a sedan?

Why is a station wagon more a sedan than an SUV. Guess I can look that up, but maybe you know already and can share.
IMHO the Government may be the only ones still using the classification of "station wagon". Chrysler introduced the Minivan to avoid the negative connotation of the "family wagon" back in the 80's.
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