Today starts Lightning Production by by $7500 Fed Tax Credit

[SWO]

The Feds are not "paying" anyone $7,500 to buy an electric car. That is a tax rebate and most of us don't pay that much tax. I don't pay at all so I don't get any "payment". It is easier to raise gas taxes so buyers will search for hybrids and electrics on their own.

I know exactly how it works, I bought 2 eligible vehicles last year. Most people who are working have enough tax liability.

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[jeffvick2005]

The Feds are not "paying" anyone $7,500 to buy an electric car. That is a tax rebate and most of us don't pay that much tax. I don't pay at all so I don't get any "payment". It is easier to raise gas taxes so buyers will search for hybrids and electrics on their own.

If folks are buying a $50-$75k car, I certainly hope they have at least a $7,500 tax liability...

 

[TRP]

I know exactly how it works, I bought 2 eligible vehicles last year. Most people who are working have enough tax liability.

Same here. I bought 2 BEVs last year AND had the tax liability to take advantage of the situation. Nice refund check. Likely won't be as nice next year tho

 

[Oldbutalive]

Keep in mind the Mexico plant sells to 20 countries. Ramp up for Lightening will be interesting.

 

[RickMachE]

So, just curious, does it matter at all when you take delivery or is it just based off of the year.

All that matters is when you take delivery...

 

[RickMachE]

This is making the wait even more frustrating. I'm really hoping I can get the Mach-E before the tax credit starts to phase out. Hopefully that doesn't happen before October.

See post #6. No phaseout is likely before 1/1/23.

 

[Kamuelaflyer]

If folks are buying a $50-$75k car, I certainly hope they have at least a $7,500 tax liability...

Why?

Many people have various tax advantaged income streams. Others live in locations where they are not required to pay Federal Income tax. Many of those people can still afford to buy a Mach-e, they just won’t get the benefit of the tax credit.

 

[devmach-e]

Why?

Many people have various tax advantaged income streams. Others live in locations where they are not required to pay Federal Income tax. Many of those people can still afford to buy a Mach-e, they just won’t get the benefit of the tax credit.

What locations would those be? Indian reservations? I get that a lot of retired people pay little income tax because of the way retirement pensions are setup. But I suspect that the people who can easily afford a $60K car probably still have at least $7500 worth of tax liability.

 

[Kamuelaflyer]

What locations would those be

For starters one place is where the person who posted the comment about not having $7500 dollars of federal income tax liability lives. While they pay a boat load of federal taxes, federal income tax isn’t one of them.

There are also a fair number of forum members who live within the 50 states that are in the same boat. While their liability isn’t zero, it’s also not $7500. They also lose out on the full tax credit.

 

[timbop]

Circling back to this topic: through the END of 2021 Ford had sold a total of 159,588 qualifying EV's (per this link at irs.gov). US sales for the Mach-E in Q1 2022 are 6734 (2370 in jan, 2001 in feb, and 2363 in mar), so continuing at that level Ford will have sold roughly 166k to 167k qualifying EV's before we add in the lightning's sales. As long as they don't sell more than 33k lightnings in may and june combined, then the full credit will be available through 12/31/22. That's probably a fairly safe assumption given that the lightning is just beginning its production run.

However, I think it likely that they will hit the 200k threshold before October 1st: at 2500 a month the Mach-E sales will put them at around 175k by then, and I expect the lighting production line will be able to spit out an average of 5000 a month.

** EDIT **
I didn't include the sales of plugin hybrid escapes or lincoln corsairs, but I don't think that changes the results: the 200k threshold very likely happens in 3Q22

 

[TRP]

Circling back to this topic: through the END of 2021 Ford had sold a total of 159,588 qualifying EV's (per this link at irs.gov). US sales for the Mach-E in Q1 2022 are 6734 (2370 in jan, 2001 in feb, and 2363 in mar), so continuing at that level Ford will have sold roughly 166k to 167k qualifying EV's before we add in the lightning's sales. As long as they don't sell more than 33k lightnings in may and june combined, then the full credit will be available through 12/31/22. That's probably a fairly safe assumption given that the lightning is just beginning its production run.

However, I think it likely that they will hit the 200k threshold before October 1st: at 2500 a month the Mach-E sales will put them at around 175k by then, and I expect the lighting production line will be able to spit out an average of 5000 a month.

** EDIT **
I didn't include the sales of plugin hybrid escapes or lincoln corsairs, but I don't think that changes the results: the 200k threshold very likely happens in 3Q22

If I remember correctly, the Lightning will be somewhere around 15k produced this year

 

[timbop]

If I remember correctly, the Lightning will be somewhere around 15k produced this year

The numbers have been revised several times but I don't think it will be that low. Regardless the full rebate in 4Q22 is likely but for 1Q23 I think it is optimistic...

 

[devmach-e]

If I remember correctly, the Lightning will be somewhere around 15k produced this year

They're building about 300 a week right now. Even if they double that to 600 a week, it still means less than 2500 will be sold per month. Given that Ford can barely do 2500 a month for Mach-E sales, that means they're unlikely to hit the 200K phaseout trigger until very late in Q3. I'm betting they won't hit it until the start of Q4.

 

[jeffvick2005]

For starters one place is where the person who posted the comment about not having $7500 dollars of federal income tax liability lives. While they pay a boat load of federal taxes, federal income tax isn’t one of them.

There are also a fair number of forum members who live within the 50 states that are in the same boat. While their liability isn’t zero, it’s also not $7500. They also lose out on the full tax credit.

Federal taxes generally don't very by state. The only thing that would have an impact is possibly retirement and having done so with a wad of cash. Or someone who has a ton of itemized deductions. HSA and 401k caps are too low.

In order to have less than a $7,500 fed tax liability, you'd have taxable income of less than ~$65k - married filing jointly. If you're single, it's even less. Even with bunch of deductions that means your gross income would have to be under $100k.

Then again, kids are expensive and perhaps if single, it may be doable.

 

[Kamuelaflyer]

Federal taxes generally don't very by state. The only thing that would have an impact is possibly retirement and having done so with a wad of cash. Or someone who has a ton of itemized deductions. HSA and 401k caps are too low.

In order to have less than a $7,500 fed tax liability, you'd have taxable income of less than ~$65k - married filing jointly. If you're single, it's even less. Even with bunch of deductions that means your gross income would have to be under $100k.

Then again, kids are expensive and perhaps if single, it may be doable.

Oh for f—- sake. The guy making the comment about not having $7500 federal tax liability lives in Puerto Rico. They’re part of tte United States but don’t pay Federal Income Tax, just a metric ton of other Federal taxes.

An awful lot of presumption and willingness to argue about things without any background research.

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