Timeline and Tax Credit

[GoodenoughIsGod]

When I tried building an online order for a premium trim vehicle, it said the timeline is 24+ weeks. Let’s say my delivery date gets pushed out to later in the year or worse to 2022 after I reserve/order. Does that mean my $7500 tax credit might go away?

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[murphy62]

When I tried building an online order for a premium trim vehicle, it said the timeline is 24+ weeks. Let’s say my delivery date gets pushed out to later in the year or worse to 2022 after I reserve/order. Does that mean my $7500 tax credit might go away?

If the car goes into service in 2022 then you take the credit in the 2022 tax year, i.e. in 2023.
Ford has to build 200,000 cars , for sale in the USA, before the credit goes away. Sales to other countries do not count.

 

[GoodenoughIsGod]

Thanks. Considering that anecdotally they seem to have a healthy sales volume, I’m not optimistic about reserving now, completing the sale whenever it becomes available and actually getting the tax credit. Considering that, my best option seems to be to try and find the car I want that a dealer already has in their inventory.

I am torn between a model Y and the Mach E and one strong reason besides aesthetics that’s pushing me towards the Mach E is the tax credit. Absent that I might decide to go for the Y instead. I’m going to try hard over the next couple of days to locate a vehicle that already exists somewhere.

 

[OH2AZ2OH]

I think you will be ok, but from someone who has waited 7.5 months for delivery, you should try to find one locally unless you want to drive your family and friends crazy with constant status updates, most of which will be "I still haven't heard anything new!". Ford has stated the first Mach E sales volume is capped at 50k due to battery supply. I can't find recent numbers, but Ford had around 75000 vehicles left before phase out in June 2020. Even after they hit 200,000, the full credit is in place for the remainder of that quarter and the following quarter.

Source: https://evadoption.com/resources/federal-electric-vehicle-ev-tax-credit-works/ (I confirmed in multiple places, but that one has the cleanest explanation)

 

[ChasingCoral]

When I tried building an online order for a premium trim vehicle, it said the timeline is 24+ weeks. Let’s say my delivery date gets pushed out to later in the year or worse to 2022 after I reserve/order. Does that mean my $7500 tax credit might go away?

2022 model year vehicles should be eligible for the $7500 tax incentive. 2023 is less certain. Remember there will be around 20,000 2021 Mach Es sold in the US (the rest to EU/UK). I estimate another 20-50K 2022 Mach Es, 80K Lightnings, and an unknown number of eTransits sold in the US. The IRS shows Ford EV sales totaling 134,195 as of 3/31/21. That means Ford had 65,805 vehicles left to sell before hitting the 200,000 sales limit. Sales have been around 2,000 per month since then, so that leaves around 60,000
https://www.irs.gov/businesses/irc-30d-plug-in-electric-drive-motor-vehicle-credit-quarterly-sales

At least the early deliveries of 2022 Mach Es and Lightnings should get the full tax credit before phaseout clock begins, thus making all 2022 calendar year sales eligible before the first phaseout reduction.

"The credit begins to phase out for vehicles at the beginning of the second calendar quarter after the manufacturer has sold 200,000 eligible plug-in electric vehicles (i.e., plug-in hybrids and EVs) in the United States as counted from January 1, 2010. IRS will announce when a manufacturer exceeds this production figure and will announce the subsequent phase out schedule (Plug-In Electric Drive Motor Vehicle Credit Quarterly Sales)." https://www.fueleconomy.gov/feg/taxevb.shtml

 

[will]

Thanks for the ask / answers here, I have been sweating this myself ?

 

[tacobellcow]

Thanks for the ask / answers here, I have been sweating this myself ?

I ordered about 8 weeks ago and I'm sweating thinking that i might not get that rebate, but sounds like with it being eligible for two full quarters after being delivered, it sounds like many like myself are safe. But I hate all the uncertainty.

 

[barryvo]

We ordered ours three weeks ago and it is expected around Christmas. A few of the local dealerships I inquired with called and have some some on hand they are having a hard time unloading and offered them up. I'm fine with waiting as we are giving the current car away to our niece next year.

Plus I'm hoping they can work out some of the software issues before we take delivery. I know first model year cars are always a crapshoot though. I'm a little terrified about the increase reporting of severe problems but do not have plans to cancel the order. I'm also trying to find a way to purchase an additional key fob but my dealership informed me it is not possible at this time.

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