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Tax Credits

benboy12

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You need to take into account any deductions that you will be taking. If you take the standard deductions for 2020
Married filing jointly$24,800
Head of household$18,650
Single/married filing separately$12,400
Your tax liability has to be at least $7500 more than that after All deductions.
Agreed. If I’m not mistaken, I believe we calculated have to make around $65k a year as a single person or $90k married to take the full standard deduction and have a tax liability of $7500. I would think that the majority of people shopping for a car at this price point would be at this threshold.
 

cometguy

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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.
Ford won't be the last... Chrysler is way behind Ford, I think, and I don't think Chrysler is taking BEVs seriously (yet), so they're going to lose out big-time if they keep dragging their feet. BEVs are still very slow acceptance in the USA, so Ford has a few years of the Mach-E sales before the credit runs out, I would guess. It will be interesting to see how many people buy the Mach-E in 2020 and 2021; it will probably sell more in the next year than in the year after, for the simple reason that there aren't many SUV/crossover BEVs to choose from yet. But this will change rapidly by 2021-2022, and the competition will lower Mach-E sales a couple years from now (just as Tesla sales will also decrease due to the competition, even if Telsa still has better range).
 

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We should get up to date on the tax credits! We do not talk enough about this.
The $7500.00 will not go to everyone. Tesla ran out and no longer will offer any
as of January 1, 2020. I do not know the ins and outs of this. Let's all help each other
learn more about "Tax Credit. Check below for more info.
electric car tax credit
 

KT-PNW

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There's an additional tax credit in my state too ($4000 in 2020, $2500 in 2021/22). Probably no chance of getting Mach-e delivery in 2020 though (my reservation# is 290xx). But that still adds up to $10k in 2021. If I couldn't get most of that I'd wait another year or two when there's probably more choices and better batteries.
I’ve been wondering how the timing of this works in terms of federal and state tax credits. It makes sense with cars that are already out. The year the car is purchased is the year it applies, but what’s the purchase point for the Mach E? When we confirm the order with Ford (not the reservation)? When we arrange payment with Ford? Title and registration? Or, when they hand over the keys and it’s finally in our possession?

I’m in the back end of reservations so I doubt the car will be delivered in 2020. Should I be aiming to increase my tax liability for 2021 then?
 

Sweetwater

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This is what all of us must talk about. It's time to learn about Tax Credits as much
as we have learned about MME. When I saw $7500.00 tax credit I thought it was
a no brainer but it's not. Some states do have their own credits above the Fed.
I know we have members that can explain this better than the Govt. does.
 

benboy12

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I’ve been wondering how the timing of this works in terms of federal and state tax credits. It makes sense with cars that are already out. The year the car is purchased is the year it applies, but what’s the purchase point for the Mach E? When we confirm the order with Ford (not the reservation)? When we arrange payment with Ford? Title and registration? Or, when they hand over the keys and it’s finally in our possession?

I’m in the back end of reservations so I doubt the car will be delivered in 2020. Should I be aiming to increase my tax liability for 2021 then?
its when the sale is finalized (when you take delivery)
 

FredT

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My experience was three years with an Audi lease in California. The federal part was easy, as Audi simply reduced the lease amount by the amount of the credit. For the state part, I had to send in paperwork and then received a check for the amount. No tax return involved. What we're being told here is that Ford will not handle please the same way and that a lease or purchase will effectively be the same for federal credit, that is apply it to your tax return the year that the purchase is made.
 

Sweetwater

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Thanks for info. I think people do not care yet until signing paperwork. Wake up
all do not count on $7500.00 as it may not be for all. And will the "NO TAX CREDIT"
for Tesla hurt their sales ?
 

Sweetwater

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I see members are still counting on the $7500.00 tax credit. No one is
speaking up about this. Yes we are excited about MME but we can not
ignore or assume the $7500.00 is for all. Help clarify this tax credit for
all the members.
 

benboy12

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I see members are still counting on the $7500.00 tax credit. No one is
speaking up about this. Yes we are excited about MME but we can not
ignore or assume the $7500.00 is for all. Help clarify this tax credit for
all the members.
Is your annul Federal income tax liability $7500 or greater? If so you are good
 

timbop

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I see members are still counting on the $7500.00 tax credit. No one is
speaking up about this. Yes we are excited about MME but we can not
ignore or assume the $7500.00 is for all. Help clarify this tax credit for
all the members.
The caps are based on when ford delivers its 200,000th qualifying electric vehicle. Whatever that date is, any more EV's delivered until the end of THE CALENDAR QUARTER FOLLOWING THE CALENDAR QUARTER in which the 200,000th car was delivered still qualify at the full rebate. For example say the 200,000th qualifying EV is sold by Ford on April 3rd 2021 (second quarter 2021). All qualifying EV's delivered by Ford before October 1st 2021 will qualify for the full $7500 tax credit. EV's delivered from October 1st 2021 to March 31st 2022 will qualify for half tax credit ($3750). EV's Sold from April 1st 2022 to September 30th 2022 will qualify for $1875. After that, no more Fords would qualify.

The last numbers I saw were from the end of June last year when Ford had only sold 116,000 qualifying vehicles, so it is unlikely that the 200,000th qualifying EV will be delivered in the US before all the 2021 Mach E's are delivered. That assumption is based on the fact that only about half of the first years' production of 50,000 units is targeted for the US.

here's the article:
https://evadoption.com/ev-sales/federal-ev-tax-credit-phase-out-tracker-by-automaker/
 
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macchiaz-o

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I see members are still counting on the $7500.00 tax credit. No one is
speaking up about this. Yes we are excited about MME but we can not
ignore or assume the $7500.00 is for all. Help clarify this tax credit for
all the members.
First of all, I'm not a tax person, CPA, lawyer, etc. Here's an example of how the credit works.

Take delivery of the Mustang Mach-E in 2020. The car's 100% for your personal use (not used for business purposes).

While filing your federal 2020 taxes in early 2021, you'll complete Form 8936 -- Qualified Plug-in Electric Drive Motor Vehicle Credit. Basically, the form works out like this:

$7500: Potential credit for Mustang Mach-E
your-total-tax

The credit you get back is the smaller of those two numbers.

Take a look at your 2019 Form 1040 that you've filed (or will be filing soon). Line 16 is your total tax. If your total tax is less than $7500, then you'll want to consider taking some actions in the year you'll be receiving your MME in order to increase your tax liability and get the full credit.
 

LYTMCQ

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The year the car is purchased is the year it applies, but what’s the purchase point for the Mach E?
Same for every other car, when you buy it and you or your bank takes title to it.
 

LYTMCQ

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Take a look at your 2019 Form 1040 that you've filed (or will be filing soon). Line 16 is your total tax. If your total tax is less than $7500, then you'll want to consider taking some actions in the year you'll be receiving your MME in order to increase your tax liability and get the full credit.
Exactly. Just look at your current taxes as a guide.
 

RobB

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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.
So much for doing right by the planet! It is disappointing to think: Gewinn uber Alles.
 



 









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