Official IRS Guidance on Tax Credit Until 1/1/23

[Spectre]

Good question, didn’t word that correctly. I was on a waiting list for a MME reservation if someone walked away from it. Someone did and I “took over” their reservation, put down deposit etc but had to agree to ADM or they would go to the next person on the list.

Ahhh ok. That makes sense. Still a dirty dealer IMO. My dealer has so far offered me 2 MMEs at MSRP on lot from reservation cancellations. I just didn’t want the colors and chose to wait

Sponsored

 

[West1134]

Ahhh ok. That makes sense. Still a dirty dealer IMO. My dealer has so far offered me 2 MMEs at MSRP on lot from reservation cancellations. I just didn’t want the colors and chose to wait

I wish I had that luck. I’m on at least 20-25 dealers waiting lists for walk away orders and this was the first one that came through so I jumped on it and put down the deposit and accepted the ADM. However, I still can walk away from it and get a refund on my deposit. I’m hopeful to come across a lower ADM option or MSRP option. Time will tell. I have a little over a month to find that.

 

[bp99]

Implementation really should have allowed overlap. If the purchase fit under the prior program, you could claim it through Dec 31. If the purchase works under the Jan 1 2023 requirements, you could use that starting today. Putting in place the NA assembly while preserving the existing caps creates a Frankenstein situation. While still under prior caps, Hundai, KIA, etc buyers with existing orders get screwed. Those consumers made a decision based on expected rebates. Not allowing manufactures over the existing cap qualify until Jan 1 is going to create chaos in having people with existing orders trying to delay delivery until after Jan 1. Both cases just create market chaos and doesn't help anyone -- consumer, dealer or manufacturer.

Just like the rest of this bill, no real forethought. Just a bumbling mess rushed out to gain midterm votes.

 

[ChuckA]

I read IRC 30D as published 08/16/22.

For transition, does a $500 deposit meet the requirement be a significant non-refundable deposit? Everyone that does the deposit thinks it is refundable.

I’m not giving tax advice, but, If it was me I’d take the tax credit and then try to defend it with documentation if questioned.

Has a lawmaker ever ordered an EV?

 

[ragequit310]

I read IRC 30D as published 08/16/22.

For transition, does a $500 deposit meet the requirement be a significant non-refundable deposit? Everyone that does the deposit thinks it is refundable.

I’m not giving tax advice, but, If it was me I’d take the tax credit and then try to defend it with documentation if questioned.

Has a lawmaker ever ordered an EV?

This.

They specifically mention state laws being a factor. In California it's illegal to have a non refundable car deposit that is more than 2.5%. https://codes.findlaw.com/ca/vehicle-code/veh-sect-11736.html

I think it might be an argument that these are the only types of legal orders under California state laws. I'm going to try anyway with my $500 deposit order.

 

[Mach1E]

I read IRC 30D as published 08/16/22.

For transition, does a $500 deposit meet the requirement be a significant non-refundable deposit? Everyone that does the deposit thinks it is refundable.

I’m not giving tax advice, but, If it was me I’d take the tax credit and then try to defend it with documentation if questioned.

Has a lawmaker ever ordered an EV?

If it’s refundable, it’s not going to be binding.

If it’s non-refundable, the $$ amount? Will depend on your local state law.

IRS says “generally requires 5% nonrefundable.” But your state may have different rules.

 

[jay1122]

Good question, didn’t word that correctly. I was on a waiting list for a MME reservation if someone walked away from it. Someone did and I “took over” their reservation, put down deposit etc but had to agree to ADM or they would go to the next person on the list.

Woot, 10K markup on a non dealer lot car. Must be a GT I assume. I actually don't know what people see in the car to be willing to pay 10K markup. If I am loaded with extra 10k to burn. I would probably wait for the Cadillac Lyriq and see how the new tax credit play out next year.

 

[West1134]

Woot, 10K markup on a non dealer lot car. Must be a GT I assume. I actually don't know what people see in the car to be willing to pay 10K markup. If I am loaded with extra 10k to burn. I would probably wait for the Cadillac Lyriq and see how the new tax credit play out next year.

Nope, that is for a Premium AWD / ER battery. GT's in my area are going for $82-87k. Crazy market we're in right now. I have made calls up and down the entire West coast trying to find one that isn't marked up and available (key factor) with no luck. A $200 plane ticket and road trip in a new car is worth saving the $10k+

 

[Davisir]

How about the final assembly in the USA requirement? From everything I've read, the Mach E final assembly is in Mexico. No?

 

[Mr_Brown]

The requirement says final assembly in North America.

 

[ElectrifyME]

Thanks for sharing! Just reading this for the first time (been a long day at work) and happy to see the 2022 I have reserved - slated to arrive early October - will still apply. With the $10k ADM without tax credit I was gonna release it. However, now that the credit looks to still apply I'm still considering taking delivery. Figure the tax credit will wipe out most of the ADM, then with prices expected to go up (~$5k/vehicle) for a 2023 order, I'll still squeak out ahead financially vs just waiting to order a 2023. Still debating though because well... F the dealers charging that much over because they can...then again, I can't find a MME available otherwise. Strange times.

Umm you should not be paying markup on an ordered car? Sounds weird. My dealer will be selling me the car for the ordered price I agreed to through the ford website. And again if I order a 2023, same thing. Only way the dealer is charging ADM is on cars on the lot that they order or someone rejects. And it’s $15-20k!!! Hell no. I take it u did not order through Ford?

 

[Flat6]

So given that my $500 deposit doesn't count as a binding order, I really need to hope that my order (Premium awd extended range) arrives by year end. Otherwise, no credit for me, and it seems like I'll be purchasing another ICE instead

Not hopeful given its mid August and no word from Ford

 

[Sam2084]

Woot, 10K markup on a non dealer lot car. Must be a GT I assume. I actually don't know what people see in the car to be willing to pay 10K markup. If I am loaded with extra 10k to burn. I would probably wait for the Cadillac Lyriq and see how the new tax credit play out next year.

Whats the liklihood of you getting a Lyric at MSRP?

 

[jay1122]

Nope, that is for a Premium AWD / ER battery. GT's in my area are going for $82-87k. Crazy market we're in right now. I have made calls up and down the entire West coast trying to find one that isn't marked up and available (key factor) with no luck. A $200 plane ticket and road trip in a new car is worth saving the $10k+

$82-87k. That is almost Porsche Taycan territory. I think it got a lot worse recently because of the new tax credit change. People are hunting the few available cars left before the changes go into effect. If it was 2-3 months ago, I can easily find one with 3-5K markup non-GT. I bought my select 6 months ago. Dealer lot + MSRP. Got a near Carmax match on my 2017 Mercedes E300 trade in. Honestly, if it wasn't the $7500 tax credit+No tax on EV, I wouldn't have bought the car. I was deciding between Mach e and the Genesis GV70. Mach E is a great daily with mustang style and flavor, but it is no luxury car. $44K final price is about right to me for a daily. To me, if the price of EV exceeds the savings on fuel, I have no problem going back to ICE.

 

[West1134]

Umm you should not be paying markup on an ordered car? Sounds weird. My dealer will be selling me the car for the ordered price I agreed to through the ford website. And again if I order a 2023, same thing. Only way the dealer is charging ADM is on cars on the lot that they order or someone rejects. And it’s $15-20k!!! Hell no. I take it u did not order through Ford?

Just edited my original response. I didn't state it clearly. I "took over" an order from someone who walked away from theirs. As part of that, I had to put down a $1k deposit and agree to $10k ADM. I have a month to keep looking for another MME (been calling up and down West coast for a month + now with no luck finding inventory or without ADM) and walk away from this and get my $1k deposit back. But if I don't find one,this one hits all the marks for what I would order (MME Premium AWD / ER Battery / glass roof) that I'll probably still go through with it even with ADM since 2023 orders will likely not get tax credit and be (estimated) $5k more anyways, I'll still technically squeak out saving a little. We'll see though.

Sponsored