Tax Credits

MachSpeed

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RobB

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It’s my understanding Trump just axed EV tax rebate extensions with the last budget. I may have this incorrect, but seems like Ford may end up being the last of the major companies with a full rebate, getting the price down enough from luxury-priced to a moderate family-ranged pricing.
 

Bob

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How many current reservation holders will cancel if the full $7,500 Federal Tax Credit runs out?
 

macchiaz-o

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Loss of the tax incentive would just make me consider the Select more strongly than the Premium. Already, this would be the most expensive car I've ever purchased by more than double. I don't want to rocket the price up even more.

Anyway, I think this is incredibly unlikely, but let's hypothetically say that Ford reaches their cumulative U.S. sales of 200,000 plug-in electrics in November 2020. They'll report that to the IRS for the quarter ending December 31, 2020. One additional quarter of full tax incentive will be available, through March 31, 2021. Then for sales starting April 1, 2021, the credit is cut in half (to $3,750 for the Mach-E). This remains available for two quarters. Then it's cut in half again to $1,875 on Mach-E sales starting October 1, 2021. And then it's finally no longer available to any of Ford's plug-in electric sales starting April 1, 2022.

As of 6/30/2019, Ford has reported 116,926 plug-in car sales. I'm assuming they've moved maybe another 4000 cars for the remainder of this year, and maybe another 15,000 before the Mach-E starts getting delivered. (The new Escape Plug-in Hybrid is supposed to be available in Spring 2020.) That puts us at maybe 65,000 sales remaining before they even trigger the phase-out to start.

So I think the risk of losing any tax incentive for Mach-E reservation holders is really small, unless there is a really big (year+) production delay and even then, there's still good odds we'd get the full incentive.
 

schmluss

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Ford will most likely do what Tesla did and lower the price. Without the Federal tax incentive there is no way that Ford would have this car priced so high.
 

kennelh

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It’s my understanding Trump just axed EV tax rebate extensions with the last budget....
"Congress decided late Monday not to raise that threshold to 600,000, while reducing the EV credit to $7,000. The White House lobbied against the extension.

In last-minute negotiations over a massive package of spending bills designed to avert a government shutdown, the EV provision was lost in the shuffle and that was the outcome Republicans and President Trump wanted."

Tesla, GM Lose Bid To Raise Ceiling For Federal EV Tax Credit
 

EyeOnMachE

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"Congress decided late Monday not to raise that threshold to 600,000, while reducing the EV credit to $7,000. The White House lobbied against the extension.

In last-minute negotiations over a massive package of spending bills designed to avert a government shutdown, the EV provision was lost in the shuffle and that was the outcome Republicans and President Trump wanted."

Tesla, GM Lose Bid To Raise Ceiling For Federal EV Tax Credit
So at a minimum we lost $500 off the maximum federal tax credit. When does this take effect, Jan 1, 2020?
 

EyeOnMachE

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Really? Thanks, but I had already taken a cursory look there and the most recent document (out of millions!) I could find was dated Dec 14th, which is 3 days prior to the Forbes article at the link provided above. Finding a document at irs.gov is the proverbial finding a needle in a haystack. Presumably @macchiaz-o read this somewhere on the net and might recall where and could provide the link to that information. If you don't have a link to provide for this specific information than I'm not sure why you're responding.
 

kennelh

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Thanks. Could you supply a link to a source indicating this?
The GREEN Act bill proposed amendments to the existing federal program:

"Specifically, the bill amends the current federal program for electric car buyers and would give buyers a $7,000 tax credit when they file their taxes after purchasing a qualifying vehicle. That's $500 less than the current program, but the bill lifts the tax credit cap from 200,000 vehicles to 600,000. That would give GM and Tesla (which both reached the 200,000-vehicle limit) a lot more wiggle room." -- cnet.com.

The EV tax credit change was one of many which were not approved.
 

macchiaz-o

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schmluss

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Really? Thanks, but I had already taken a cursory look there and the most recent document (out of millions!) I could find was dated Dec 14th, which is 3 days prior to the Forbes article at the link provided above. Finding a document at irs.gov is the proverbial finding a needle in a haystack. Presumably @macchiaz-o read this somewhere on the net and might recall where and could provide the link to that information. If you don't have a link to provide for this specific information than I'm not sure why you're responding.
Because nothing has changed. The update was not included in the new funding bill.
 
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