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

[llinthicum1]

The 2022 Mach-e Premium Extended RWD comes in at $54,200. So no issue in receiving the tax credit under the proposed law. Repeat, proposed law where the chances of it ever becoming law is shrinking by the day. Any trim levels above that won't qualify. So what, that shouldn't be a deal breaker. The Mach-e is an amazing vehicle and your purchase of one should be based on it's looks and performance. Consumers buying a Mach 1 or Shelby don't give a you know what about a tax credit. Buying a Mach-e should be the same way.

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[voxel]

I don't think the existing EV rules have the income limits nor the $55k limit for sedans.

For just the MME, the BBB plan does nothing so it's actually better if that part didn't pass. I don't think they should have changed the law honestly where it's a negative for some folks with the law actually passing. I hear the Rav4 Prime loses the 3.5k or something.

Without the new law, 200K unit limit applies and Ford will hit that mid 2022 and the credits will begin to phase out by end of 2022. Those ordering Mach-E in the spring may not receive full tax credit when they receive their car 8-10 months later.

 

[Mach1E]

The 2022 Mach-e Premium Extended RWD comes in at $54,200. So no issue in receiving the tax credit under the proposed law. Repeat, proposed law where the chances of it ever becoming law is shrinking by the day. Any trim levels above that won't qualify. So what, that shouldn't be a deal breaker. The Mach-e is an amazing vehicle and your purchase of one should be based on it's looks and performance. Consumers buying a Mach 1 or Shelby don't give a you know what about a tax credit. Buying a Mach-e should be the same way.

Show me someone who is buying a $60-80k car who doesn’t care about
$7500 off.

Unless they’re buying it as a “token gift for their butler,” they care.

In fact go to the Porsche dealership and ask a salesperson how often people will negotiate over a few hundred or a few thousand dollars on a Porsche. The likely answer will be “every time.”

 

[yngwenli]

Without the new law, 200K unit limit applies and Ford will hit that mid 2022 and the credits will begin to phase out by end of 2022. Those ordering Mach-E in the spring may not receive full tax credit when they receive their car 8-10 months later.

I disagree llinthicum1 that $7.5k shouldn't affect anyone's decision on buying a MME. It's not like everyone buying a $50k-$70k car is a multi-millionaire/independently wealthy person that can instantly quit their job and is happy to throw out $$.

This 11 page discussion means there are tons of people who care about $7.5k credit or we wouldn't be here. I certainly care about it.


Yeah, it shouldn't affect anyone with existing orders though since it's the 2nd quarter after hitting the 200k number. Similar to other manufacturer's changing prices based on the credit expiring after hitting 200k, Ford could also lower prices if they hit 200k (like GM did for the Bolt). Tesla already raised prices by 7-8k this year on the lowest cost versions of M3/MY to negate the 8k BBB if it passes.

I still think the law is poorly worded/designed. I'm not sure if giving Tesla/GM credits again actually helps the industry honestly. I sorta want to see the new players have a credit advantage personally so people who do care about $$ will go that route.

 

[williswong]

Lots of "I hear" and speculation. When Biden signs the bill, there were be in-depth analysis done by the experts, and we'll all know whether we have a potential issue in 2022 or not. Same goes for the Lightning. Till then, it's a waste of brain cells (or not, depending) to think about it.

In the meantime, ppl can worry and fret about why they're losing range in cold weather. LOL

 

[yngwenli]

In fact go to the Porsche dealership and ask a salesperson how often people will negotiate over a few hundred or a few thousand dollars on a Porsche. The likely answer will be “every time.”

Agreed....I was looking at the Porsche forums to read up on the Macan EV progress and see plenty of folks buying out of state, porsche experience for $120-150k cars so yeah, people like $$. It's naive to think rich people (there's a reason why they're rich) don't like $$ and don't care.

 

[Dogtoy]

I anticipated the tax getting messed up and paid slightly over msrp to get my gt this year. Looks like I made the right call!

 

[Rudy Bega]

We have ordered the same car. Our build date is 1/10/22. We may miss the 7,500K credit all together.

Why? Thought the old one stays in place if the new one is not approved

 

[sotek2345]

Why? Thought the old one stays in place if the new one is not approved

New one has a $55k MSRP cap for the Mach-e.

 

[SigSauer]

Why? Thought the old one stays in place if the new one is not approved

I don't know the answer to your post. I hope you're right. I guess our tax accountant will tell us.

 

[SigSauer]

Why? If the bill doesn’t pass the current law still stands which mean you still get a $7500 tax credit.

If… the new law passes and the old law gets repealed (it’s in the bill) when the new one comes into effect, there should be provision to handle purchases from Jan 1st to new date or make credits retroactive to Jan 1st.

Thank you.

 

[BalsaDust]

New one has a $55k MSRP cap for the Mach-e.

this is written where?

 

[Badger_Prof]

By after tax conversions do you refer to the back-door conversions of non-deductible IRA's that only the rich use?

Yes, I was referring to the non-deductible (thus "after tax") contributions made to an IRA that can then immediately be converted to a Roth IRA. It is not just the rich who can benefit from this but most anyone who works for a company that has a plan that allows this. That said, only a relatively small number of companies have eligible plans (they are a bit more expensive for the company) and those companies often tend to employ high wage workers. And, clearly the benefit is much greater for someone who is in a 37% tax bracket than a lower bracket and greater for someone who pays 20% tax on capital gains versus someone who pays 0% capital gains tax. The word "rich" is subjective but it is pretty clear that the rich benefit the most from this process if they are eligible.

 

[llinthicum1]

I disagree llinthicum1 that $7.5k shouldn't affect anyone's decision on buying a MME. It's not like everyone buying a $50k-$70k car is a multi-millionaire/independently wealthy person that can instantly quit their job and is happy to throw out $$.

This 11 page discussion means there are tons of people who care about $7.5k credit or we wouldn't be here. I certainly care about it.


Yeah, it shouldn't affect anyone with existing orders though since it's the 2nd quarter after hitting the 200k number. Similar to other manufacturer's changing prices based on the credit expiring after hitting 200k, Ford could also lower prices if they hit 200k (like GM did for the Bolt). Tesla already raises prices by 7-8k this year on the lowest cost versions of M3/MY to negate the 8k BBB if it passes.

I still think the law is poorly worded/designed. I'm not sure if giving Tesla/GM credits again actually helps the industry honestly. I sorta want to see the new players have a credit advantage personally so people who do care about $$ will go that route.

Show me someone who is buying a $60-80k car who doesn’t care about
$7500 off.

Unless they’re buying it as a “token gift for their butler,” they care.

In fact go to the Porsche dealership and ask a salesperson how often people will negotiate over a few hundred or a few thousand dollars on a Porsche. The likely answer will be “every time.”

Not saying they shouldn't care. Just saying it's not the deciding factor. If the government wants to give a tax credit, take it. But you can't rely on the government. Tax credits will come and go depending on which political party is in power. If you're a fan and potential buyer of a Mach e then buy it. Buy what you like and can afford. If you get a tax credit on top of it, then that's just extra icing on the cake. If you can't afford a $50,000-$70,000 (like me and millions of others), but still want a Mach-e, there are Mach-e models under $55,000 that would qualify for tax credit under the proposed new law.

 

[Mach1E]

Not saying they shouldn't care. Just saying it's not the deciding factor. If the government wants to give a tax credit, take it. But you can't rely on the government. Tax credits will come and go depending on which political party is in power. If you're a fan and potential buyer of a Mach e then buy it. Buy what you like and can afford. If you get a tax credit on top of it, then that's just extra icing on the cake. If you can't afford a $50,000-$70,000 (like me and millions of others), but still want a Mach-e, there are Mach-e models under $55,000 that would qualify for tax credit under the proposed new law.

Based on the dozens and dozens of people who have bought or are considering buying a Mach E and their comments, I would say $7,500 absolutely is a deciding factor.

More than a few, without the tax credit, would jump ship to a Tesla or ICE.

I don’t know your experience or history with buying cars, but has price ever NOT been a deciding factor?

If the Mach E jumped up to $80,000 would you still buy it? What about $90k? It’s only money right?

I wouldn’t have. I also have zero interest in the “under $55k” model. It was GTPE or nothing for me.

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