VIN decoder & Tax Credit?!

[Darkenmage]

So I was looking into the EV tax credit and found a website ( Alternative Fuels Data Center: Electric Vehicles with Final Assembly in North America (energy.gov) that decodes the VIN of the vehicle and shows where it is assembled.

I did not know that some MEs are not assembled in the US. So, if it is not, then one does not qualify for the EV tax credit?

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[kisonay]

The location part of the tax credit is North America. Since it was manufactured in MX, it should be covered.

The battery portion of the rebate is still up in the air.

That being said, if you take ownership this year (2022) you should qualify for the entire rebate.

 

[Blackpony]

Its North America I believe and not just the US. My 2022 GT qualifies and was assembled in Mexico as I understand it.

 

[Todd44]

Just FYI, the forms you fill out for the Tax rebate (for the Tax Year 2022) apparently do NOT require a VIN. That might change for 2023 forms (which you would fill out in 2024), but who knows. This is also just a preliminary form, might change, might not. I think it’s going to be, “check this box if your car was purchased/Binding Contract AFTER 8/26 and before 12/31 and if it was made in North America” == 7500. My wife is a CPA, however, I sometimes misunderstand what she is saying, so this might be wrong!

 

[generaltso]

So I was looking into the EV tax credit and found a website ( Alternative Fuels Data Center: Electric Vehicles with Final Assembly in North America (energy.gov) that decodes the VIN of the vehicle and shows where it is assembled.

I did not know that some MEs are not assembled in the US. So, if it is not, then one does not qualify for the EV tax credit?

You don’t really need to decode the VIN to figure out where an MME is built since every one of them sold outside of China was built in the same factory in Mexico.

Just FYI, the forms you fill out for the Tax rebate (for the Tax Year 2022) apparently do NOT require a VIN.

That’s not true. The tax credit form has always required a VIN.

 

[Darkenmage]

TY all for the responses and clarification. My wife breathed a sigh of relief

 

[Todd44]

That’s not true. The tax credit form has always required a VIN.

Was not referring to the past (2021 taxes and prior) My wife is a CPA tax accountant and in her EV tax webinar (part of her required CE) they mentioned the VIN would NOT be required for 2022 taxes (the ones we file in 2023). That could change, the webinar might be wrong, but until we see the forms, we won’t know.

 

[generaltso]

Was not referring to the past (2021 taxes and prior) My wife is a CPA tax accountant and in her EV tax webinar (part of her required CE) they mentioned the VIN would NOT be required for 2022 taxes (the ones we file in 2023). That could change, the webinar might be wrong, but until we see the forms, we won’t know.

I've done 3 EV tax credits. Nothing has changed for 2022 (other than the North American assembly requirement after 8/16), so there's no reason to think the tax form will be different. My money's on the webinar being wrong.

 

[kisonay]

From 8936 clearly request the VIN of the purchased vehicle.

https://www.irs.gov/pub/irs-pdf/f8936.pdf

 

[Kafka]

I've done 3 EV tax credits. Nothing has changed for 2022 (other than the North American assembly requirement after 8/16), so there's no reason to think the tax form will be different. My money's on the webinar being wrong.

Is putting a non-refundable deposit this past September for my 2023 order considered to have a binding purchase agreement?
My MME might be delivered around the first week of January 2023, but I wouldn't qualify in 2023 due to income limits in effect starting 1/1/2023...

And if it is, what do I show as proof of it being a non-binding agreement, since I just entered the deposit with a Credit Card via ford.com but area Dealers told me beforehand that it was non-refundable, and ford.com says that it's up to the individual dealer and to check with them.

 

[generaltso]

Is putting a non-refundable deposit this past September for my 2023 order considered to have a binding purchase agreement?
My MME might be delivered around the first week of January 2023, but I wouldn't qualify in 2023 due to income limits in effect starting 1/1/2023...

That likely depends on the laws in your state, but the IRS guidance suggests that a binding contract would require a 5% non-refundable deposit.

For tax purposes in general, a contract provision that limits damages to an amount equal to at least 5 percent of the total contract price is not treated as limiting damages to a specified amount. For example, if a customer has made a non-refundable deposit or down payment of 5 percent of the total contract price, it is an indication of a binding contract.

https://www.irs.gov/businesses/plug-in-electric-vehicle-credit-irc-30-and-irc-30d

 

[Bigfeets]

So I was looking into the EV tax credit and found a website ( Alternative Fuels Data Center: Electric Vehicles with Final Assembly in North America (energy.gov) that decodes the VIN of the vehicle and shows where it is assembled.

I did not know that some MEs are not assembled in the US. So, if it is not, then one does not qualify for the EV tax credit?

eleventh digit of MME VIN

IRS form 8936 instructions, applicable if MME is purchased before 1/1/23

 

[Kafka]

That likely depends on the laws in your state, but the IRS guidance suggests that a binding contract would require a 5% non-refundable deposit.

For tax purposes in general, a contract provision that limits damages to an amount equal to at least 5 percent of the total contract price is not treated as limiting damages to a specified amount. For example, if a customer has made a non-refundable deposit or down payment of 5 percent of the total contract price, it is an indication of a binding contract.

https://www.irs.gov/businesses/plug-in-electric-vehicle-credit-irc-30-and-irc-30d

Interesting. I have a higher than usual deposit in right now ($1,500), but that's not 5% of my purchase price.

Is that 5% of the Invoice price (msrp, options, destination + delivery), or 5% of the final price (msrp, options, destination + delivery, Sales Tax, Registration, etc.)?

This suggests to me that more of a tighter sales contract could be drafted up with the dealer and I could up the deposit amount to this full 5% (counting my $1,500 deposit), state that it is a binding sales contract pending arrival of the vehicle, and be in compliance against 2022 FY.

What do you think?

 

[generaltso]

Interesting. I have a higher than usual deposit in right now ($1,500), but that's not 5% of my purchase price.

Is that 5% of the Invoice price (msrp, options, destination + delivery), or 5% of the final price (msrp, options, destination + delivery, Sales Tax, Registration, etc.)?

This suggests to me that more of a tighter sales contract could be drafted up with the dealer and I could up the deposit amount to this full 5% (counting my $1,500 deposit), state that it is a binding sales contract pending arrival of the vehicle, and be in compliance against 2022 FY.

What do you think?

Since you're asking for my opinion, I don't think that would fly. The binding contract would have to have been in place before the IRA was signed into law on 8/16/22.

 

[Kafka]

Since you're asking for my opinion, I don't think that would fly. The binding contract would have to have been in place before the IRA was singed into law on 8/16/22.

Chucks.
Forgot about that part, it needs to predate the signing of the IRA.
Thank you.

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