US Federal EV Tax Credit - Things to know

dbsb3233

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That‘s not how the phase-out works. When a manufacturer reaches 200k plugin vehicles sold, they keep the full tax credit for the remainder of that quarter AND the following quarter. Then they get two full quarters at 50%. ($3750). Then they get two more quarters at 25% ($1875).
Yep. Looking at the data and pace so far, it's gonna be close whether Ford hits their 200,000 in 1Q2022 or 2Q2022. I'm guessing 1Q though.

They were at 149k thru 3Q2021, with a pace of about 7800/mo. That pace would put them at 196k by end of 1Q2022. But Ford has said they want to ramp up the pace of the Mach-E. The eTransit may deliver some vehicles in that quarter, and Escape PHEV will add some. Seems like a strong chance they'll add enough to pass 200k.

https://www.irs.gov/businesses/irc-30d-plug-in-electric-drive-motor-vehicle-credit-quarterly-sales

IF that's the quarter they hit the limit, then this would be the schedule:
$7500 credit now thru 6/30/2022
$3750 credit 7/1/2022 thru 12/31/2022
$1875 credit 1/1/2023 thru 6/30/2023

Could still be one quarter later than that though.

***EDITED*** I totally screwed up those numbers. I confused quarter with month (should be 7800/quarter, not month). So push those dates back 6 months. Looks more likely Ford will cross 200,000 in 3Q2022.
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Bigfeets

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That‘s not how the phase-out works. When a manufacturer reaches 200k plugin vehicles sold, they keep the full tax credit for the remainder of that quarter AND the following quarter. Then they get two full quarters at 50%. ($3750). Then they get two more quarters at 25% ($1875).
Thanks for the correct phaseout info.
 
 




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