Price incentives for the F150 lightning

[Don weller]

It is my opinion that if the the Biden administration wants to promote the sale of electric vehicles, it would be better to have a 7,500 dollar rebate then a tax incentive. Because as I understand it and correct me if iam wrong,no matter how big the tax incentive they offer you would only get the amount of income tax that you pay. So if you only payed 3,000 dollars in income tax that's all you would get. I can't see how this will promote sales of electric vehicles.

 

[frunk]

You are right. But it looks like this bill is going to change a lot. A senator has amended the bill to make it so it will not apply to cars costing more then $40,000

No EV tax credit if you earn more than $100,000, says US Senate

The amendment would also limit the tax credit to EVs that cost less than $40,000.

arstechnica.com

Senate Pushes for $40,000 Cap on EV Tax Credit

Senate passes measure for $40,000 cap on the EV tax credit, and only EVs priced under $40,000 would be eligible for $7,500 credit under this plan.

www.autoweek.com

 

[Don weller]

It is my opinion that if the the Biden administration wants to promote the sale of electric vehicles, it would be better to have a 7,500 dollar rebate then a tax incentive. Because as I understand it and correct me if iam wrong,no matter how big the tax incentive they offer you would only get the amount of income tax that you pay. So if you only payed 3,000 dollars in income tax that's all you would get. I can't see how this will promote sales of electric vehicles.

If this stands, I wonder how it will effect the sales of the F150 lightning. This may cause ford to lose some prospective buyers.

 

[corradoborg]

If this stands, I wonder how it will effect the sales of the F150 lightning. This may cause ford to lose some prospective buyers.

It will not stand. It’s just a conservative attack on EVs so they can tell their oil company bosses (donors) that they tried to kill the EV tax credit. But Biden is very committed to making EV tax credits even better, not worse. In fact, they are attempting to make it so that even if you paid less in taxes, you would get the full $7500 benefit. Plus $2500 for vehicles made in the US. Plus another $2500 for vehicles made in the US with union labor. Those would both apply to Ford, so the potential full rebate if the Dems get their bill through reconciliation will be $12,500. And the vehicle price cap would be $80,000, not $40,000. So only the Platinum and high-level Lariats would be priced out.

 

[Don weller]

It will not stand. It’s just a conservative attack on EVs so they can tell their oil company bosses (donors) that they tried to kill the EV tax credit. But Biden is very committed to making EV tax credits even better, not worse. In fact, they are attempting to make it so that even if you paid less in taxes, you would get the full $7500 benefit. Plus $2500 for vehicles made in the US. Plus another $2500 for vehicles made in the US with union labor. Those would both apply to Ford, so the potential full rebate if the Dems get their bill through reconciliation will be $12,500. And the vehicle price cap would be $80,000, not $40,000. So only the Platinum and high-level Lariats would be priced out.

I am wondering how this as you just stated will affect the average buyer . I believe a rebate would be more affective than a tax credit, I think it would be less complicated and generate more sales.

 

[corradoborg]

I am wondering how this as you just stated will affect the average buyer . I believe a rebate would be more affective than a tax credit, I think it would be less complicated and generate more sales.

I agree with you about a point of sale rebate being better - and that has also been proposed, but seems unlikely to make it into final legislation. How often do we get anything from congress that is less complicated and works exactly as intended?

The way it would work as currently proposed is you would claim the tax credit when you file for the tax year in which you bought your EV, and you'd get a $7500, $10k, or $12,500 credit, depending on whether the EV was made in the US or not, with union labor or not. The new law would also eliminate the 200,000-unit cap on manufacturers, which would open the credit up to Tesla and GM buyers again too. So an F-150 Lightning (which is going to be union-made in the US) would get the full $12,500 credit. A Tesla (made in the US, but not union) would qualify for $10k. A Mustang Mach-E (made in Mexico) would get the base $7500.

Whereas the current EV tax credit only applies to your tax liability - meaning, as you said, that if you paid in $3000 you'd only get that much back - the proposed legislation would make it a fully-refundable credit, and you'd get the whole amount regardless of your tax liability.

How that would look on the tax forms, and whether you'll need a CPA to help you file in such a complex situation, I have no idea. But it's not going to be on the EZ forms, that's for sure.

 

[Don weller]

I agree with you about a point of sale rebate being better - and that has also been proposed, but seems unlikely to make it into final legislation. How often do we get anything from congress that is less complicated and works exactly as intended?

The way it would work as currently proposed is you would claim the tax credit when you file for the tax year in which you bought your EV, and you'd get a $7500, $10k, or $12,500 credit, depending on whether the EV was made in the US or not, with union labor or not. The new law would also eliminate the 200,000-unit cap on manufacturers, which would open the credit up to Tesla and GM buyers again too. So an F-150 Lightning (which is going to be union-made in the US) would get the full $12,500 credit. A Tesla (made in the US, but not union) would qualify for $10k. A Mustang Mach-E (made in Mexico) would get the base $7500.

Whereas the current EV tax credit only applies to your tax liability - meaning, as you said, that if you paid in $3000 you'd only get that much back - the proposed legislation would make it a fully-refundable credit, and you'd get the whole amount regardless of your tax liability.

How that would look on the tax forms, and whether you'll need a CPA to help you file in such a complex situation, I have no idea. But it's not going to be on the EZ forms, that's for sure.

If proposed legislation would make it a fully refundable credit and you would get the whole amount regardless of your tax liability how would that work. Would it be over a period of years if you're tax liability was say3,000 a year to get the 12,500 tax break, just how would it work?

 

[frunk]

If they limit the rebate to a $40,000 vehicle I will not be picking up my new Lightning I will just keep driving my 2008 F 150 Lariat with 70,000 miles on it.

 

[corradoborg]

If proposed legislation would make it a fully refundable credit and you would get the whole amount regardless of your tax liability how would that work. Would it be over a period of years if you're tax liability was say3,000 a year to get the 12,500 tax break, just how would it work?

You would get a sweet refund check from Uncle Sam for $9500.

 

[frunk]

If proposed legislation would make it a fully refundable credit and you would get the whole amount regardless of your tax liability how would that work. Would it be over a period of years if you're tax liability was say3,000 a year to get the 12,500 tax break, just how would it work?

Yes you could carry it over next year but what you are missing is if some members of Congressman get their way you won't get anything so we just have to wait and see and VOTE

 

[Don weller]

Yes you could carry it over next year but what you are missing is if some members of Congressman get their way you won't get anything so we just have to wait and see and VOTE

To be sure I always VOTE.

 

[Whitetiburon]

You are right. But it looks like this bill is going to change a lot. A senator has amended the bill to make it so it will not apply to cars costing more then $40,000

No EV tax credit if you earn more than $100,000, says US Senate

The amendment would also limit the tax credit to EVs that cost less than $40,000.

arstechnica.com

Senate Pushes for $40,000 Cap on EV Tax Credit

Senate passes measure for $40,000 cap on the EV tax credit, and only EVs priced under $40,000 would be eligible for $7,500 credit under this plan.

www.autoweek.com

It still has a few hurdles. Not set in stone. This would be a disaster if it went all the way through to law.

 

[frunk]

Yes Now its hard for me to pick what to order. I wanted a Platinum but if its toped a $80,000 for the rebate then I am going with the Lariat. Ford is sending out our order blanks somewhere in the first of sept. They are going to start producing the Lightning close to the end of Sept. The rebate Bill will probably won't get a final vote till October. So I will order a Lariat to keep it under $80,000. In hopes of getting a $12,500 rebate. I don't get to drive it or see it tell late October when they bring it to Dallas and Houston Texas

 

[Whitetiburon]

Yes Now its hard for me to pick what to order. I wanted a Platinum but if its toped a $80,000 for the rebate then I am going with the Lariat. Ford is sending out our order blanks somewhere in the first of sept. They are going to start producing the Lightning close to the end of Sept. The rebate Bill will probably won't get a final vote till October. So I will order a Lariat to keep it under $80,000. In hopes of getting a $12,500 rebate. I don't get to drive it or see it tell late October when they bring it to Dallas and Houston Texas

That seems a little early to me don't you think? They haven't even completed the rouge plant? Probably won't till the end of the year.

 

[Don weller]

In your post you say ford will be sending out order blanks in September, I have been under the impression they would open up an ordering form on their website, with paint colors and options packages am not correct.

 

[frunk]

I,m just going by what the girl told me when i was trying to find out about the inverter for the Ford Lightning. When I ordered my Lincoln continental they sent me a postcard telling me to go the there web site and pick out what I wanted and order it through the dealer. Everything I have read says Ford keeps upping their production plans for the Lightning. Ford said they are going to do everything in their power to meet the demand for the Lightning. Mabe they are going to move in to the new Rouge plant with it not completed

 

[Don weller]

I understand what you're saying. I am guessing they will open up the order bank on line, probably September or October then we can speck out the color and options we want on our F-150 lighting.

 

[frunk]

I understand what you're saying. I am guessing they will open up the order bank on line, probably September or October then we can speck out the color and options we want on our F-150 lighting.

Yes that is right and we will convert our reservation to a order

 

[Don weller]

Yes Now its hard for me to pick what to order. I wanted a Platinum but if its toped a $80,000 for the rebate then I am going with the Lariat. Ford is sending out our order blanks somewhere in the first of sept. They are going to start producing the Lightning close to the end of Sept. The rebate Bill will probably won't get a final vote till October. So I will order a Lariat to keep it under $80,000. In hopes of getting a $12,500 rebate. I don't get to drive it or see it tell late October when they bring it to Dallas and Houston Texas

I just read a few minutes ago on Google the dems are proposing a 12,500 point of sale rebate on electric vehicles under 74,000 if union made in the United States. Did I read that right?

 

[Don weller]

I just read a few minutes ago on Google the dems are proposing a 12,500 point of sale rebate on electric vehicles under 74,000 if union made in the United States. Did I read that right?

The under74,000 is for pick ups.