tdchev3
New member
Say you want to purchase the lariat for $79k, but the dealer ADM is $2500, putting your purchase price at $81.5k. Does that disqualify you from the tax credit?
Does ADM count against $80k limit on tax credit?
- Thread starter tdchev3
- Start date
In my way of thinking its the price you pay for the truck. So yes that disqualifies you for the rebate but if they won't take off that DAM you can move it to someone that will not add DAM and Ford will just send your new truck to the new dealer and you will not lose your place in line because you already got your email from Ford
Erik
Member
Under the current EV program, there is no limit. I would not count on any new EV programs to pass the senate this year.
Yes you are right I was thinking of the new law that has not gotten passed
JazzyJeff
New member
Careful there. Ford made it clear that once you submit your order (online or in person) you CANNOT switch dealerships..so confirm no adm BEFORE submitting order. There is even a warning page when you start your online order process
If I was in that borderline position of $80k, and willing to pay a small ADM, I'd work out a deal on the side with the dealer..nothing illegal of course, but maybe a lower amount for dealer services rendered in a separate transaction, because that's all it really is..it's just a made up dealer fee for providing a service.
Assuming no change to the EV credit and the likely occurrence that Ford will exceed the 200,000 EV limit this year, loss of the EV credit is likely a game-changer for me (I probably won't be able to order in time to take advantage of the existing EV credit), given the final trim and option pricing for the EV. Comparing an equivalently-optioned Hybrid F150 to an EV F150, without the EV credit makes the EV F150 not an economical option. There is a $20K difference in price between a Hybrid XLT and an EV XLT (can't do an exact comparison because there are more electric features available on the EV, but close enough). And, I must pay MSRP for the EV, whereas I may be able to pay less than MSRP for the Hybrid. With the EV credit, that difference could drop to $12.5K, which given the fuel savings and maintenance savings, brings the difference closer to a break-even point over the life of the truck. However, some of that fuel cost savings is being offset by states adding a Highway Use Fee (Virginia has one) that applies to fuel-efficient/EV vehicles.
As with most green technology, the economics aren't there. The motivation would have to be to take one for the green team, not to save money. Or, you really have to want to use your vehicle as a rolling generator.
As with most green technology, the economics aren't there. The motivation would have to be to take one for the green team, not to save money. Or, you really have to want to use your vehicle as a rolling generator.
Yes that is right but I was saying if I got an email to convert and I went to my dealer and he said he was adding DAM then I have not submitted my order so I would tell him I will be back tomorrow
xandalf
Member
If you're talking about the law that didn't pass, the 80K cutoff is by MSRP. At least what the language said last time I looked
Erik
Member
To me, only the Pro seems price competitive to the ICE F150. I don’t care about any frills in the cabin, but I want the Pro Power and AWD The cheapest ICE F150 with Pro Power and AWD is at least $10k more expensive than the Pro. Mainly because Pro Power is not available on the most basic ICE F150. I would actually prefer a basic Ranger with Pro Power.
I thank this is getting confusing The bill that did not pass had adding money to the already existing $7500 Tax Credit that did not pass for now anyway but the existing $7500 Tax Credit does not have a price cap on it so you will get that as long as Ford has not sold 200,000 EV . I do not know how many Mock-E Ford has sold as of now. I hope I made that clear Its hard for me to explain in writing.
Agree. Decisions should not be made on a bill that may or may not exist, that may or may not pass.
For Lightning purchasers, the current, in-force EV Tax benefit is $7,500, as long as Ford has not sold more than 200,000 EVs. Based on recent Ford EV sales figures, that is likely to be met around the end of 2022. After that (I think there is a month delay), the benefit drops to half of $7,500, which is $3,750. There is no MSRP cap, nor an income cap. HOWEVER, your federal tax liability needs to be at least $7,500 to be able to get the entire $7,500 benefit. If your tax liability is only $5,000 (you are probably not a Lightning purchaser , you are independently wealthy or you have great accountants), then you will only get $5,000 of that benefit.
That is good to know. I did not know it drops to half. I believe you but can you tell me where you found that. And Thanks
Sure. From the horse's...mouth:
Credits for new electric vehicles purchased in 2022 or before | Internal Revenue Service
If you bought or leased a new, qualified plug-in electric vehicle (EV) in 2022 or before, you may be eligible for a clean vehicle tax credit up to $7,500 under IRC 30D.
How did you know I raised Quarter Horses growing up. and a dairy farm. But now i hate it no holidaysSure. From the horse's...mouth:
Credits for new electric vehicles purchased in 2022 or before | Internal Revenue Service
If you bought or leased a new, qualified plug-in electric vehicle (EV) in 2022 or before, you may be eligible for a clean vehicle tax credit up to $7,500 under IRC 30D.www.irs.gov
That's Great thanks I have never seen that before.
Just to be correct, I am updating the information I provided earlier on how the EV credits phase out, after re-reading the IRS Code.
The credits begin the phase out in the 2nd calendar quarter after the quarter in which the manufacturer sells its 200,000th qualifying plug-in vehicle.
So, if one assumes that Ford sells its 200,000th vehicle in November, October or December 2022, a buyer would receive the entire $7,500 EV credit for a sale up until June 30, 2023. From July 1, 2023 until December 31, 2023 a sale would qualify to receive half the credit, $3,750. From January 1, 2024 until June 30, 2024 a sale would qualify for a quarter of the credit, $1,875. On July 1, 2024 the EV credit would no longer be available for any Ford vehicle.
I think it is pretty safe that the full credit will be available on a sale up until June 30, 2023 and possibly another quarter beyond that, if availability of build supplies slows the production of EVs.
That is good information thanks but I believe I read in that bill that if you don't have $7,500 in tax owed you can carrie the remainder over to the next year and the year after.
That is a good question for a CPA to answer. In some cases, one can spread a tax credit to other years. I don't know whether that applies to this tax credit and don't see anything in IRS 30D that speaks to it.
But, I believe I am correct that it is a reduction in tax liability, not what you owe when you file your taxes. For instance, if you have a $20,000 federal tax liability, pay $15,000 of it in wage deductions throughout the year (like most people) and owe $5,000 at tax filing time ($20,000 - $15,000) without the EV credit, the EV tax credit reduces your tax liability by $7,500 so that your liability is now $12,500 ($20,000 - $7,500). And, since you paid, via wage deductions, $15,000 in federal tax you now have a refund of $2,500 ($15,000 (deducted from wages) minus $12,500 (the reduced tax liability)). As indicated earlier, without the credit you would have had a balance owed of $5,000, instead of the $2,500 refund.
However, if one has a tax liability of $6,000 (that is, less than $7,500) and paid $5,000 toward that liability, via wage deductions, then at filing time there would be a balance owed of $1,000. In this scenario, since the tax liability is less than $7,500, only the amount up to the tax liability can be allowed. The EV credit would completely reduce the $6,000 liability, making it $0. The remaining $1,500 of the EV credit is not allowed. Since $5,000 was already paid via wage deductions, there would be a refund due of $5,000.
Which is why, in another post, I suggested that if one did not have a tax liability of at least $7,500 you were not likely buying a Lightning. A $7,500 tax liability is likely a wage of around $50k a year. I'm not sure the price of a Lightning appeals to those in that salary range...I know it didn't when I was there.
Would love to have a CPA weigh in on what I presented. I'd hate to be completely wrong and have the post stand, uncorrected.
