Latest EV tax credit status (as of 12/30/22) - summary by NYT

[Lobo]

Why does the VW ID.4 AWD Pro have an msrp limit of $80K and a Ford Mach E have an msrp limit of $55K$ The differentiating factor in the rule seems to be 2-row suv = $55K and 3-row =$80K but the ID.4 and Mach E are both 2-row.

That is really interesting. It looks like VW is saying that the AWD versions of the ID4 make it an SUV while Ford possibly did not specify that in their documentation to the IRS for the Mach-E.

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[COdogman]

Maybe I missed this, I'm not seeing where it state those items go into effect 1/1/23. If I miss the tax credit because of the $80k cap and 2 months....wooooo im gonna be mad.

Well, they were both in the new bill, and unless we hear otherwise I think it’s safe to assume they go into effect on 1/1. They are telling us which parts of the bill will not apply yet and those were not included.

If you use the link provided in the article it lists both Rivians as eligible but with the $80k “applicable MSRP limit”.
https://www.irs.gov/credits-deducti...ied-clean-vehicles-purchased-in-2023-or-after

 

[Kuro-Rivian]

You expect reporters (or editors if those still exist) to pay attention to actual details? Once they generate a click bait headline, their job is done.

Or maybe they just made a mistake god forbid. I know....it's shocking...not everything is subterfuge. Unfortunately that'd mean we'd have to find something else to be angry about today.

 

[Redline]

Correct me if I’m wrong here, if we signed the agreement and had $100 of the $1000 reservation cost non-refundable, the income cap and price cap aren’t in place. Am I wrong on that?

 

[COdogman]

Correct me if I’m wrong here, if we signed the agreement and had $100 of the $1000 reservation cost non-refundable, the income cap and price cap aren’t in place. Am I wrong on that?

Ideally that is what will happen. It’s still up to the IRS and each state whether they will honor that agreement.

 

[Redline]

Ideally that is what will happen. It’s still up to the IRS and each state whether they will honor that agreement.

I hope they do or we won’t get the credit. It’s just all so confusing at this point.

 

[COdogman]

I hope they do or we won’t get the credit. It’s just all so confusing at this point.

It is confusing. It was confusing for the manufacturers because many of them had no idea where every component of their batteries came from, so that is why we are seeing the Treasury Dept (IRS) state they will be flexible on that. It is confusing for the IRS because they are the ones who have to enforce all of this. And it’s confusing to all of us simply attempting to buy an electric vehicle

I have spent more time than I care to admit reading everything I can find on it and I still don’t feel like I understand it 100%.

 

[cjones1130]

Those who locked in pricing pre 3/1 have an MSRP under 80k, am I missing something?

 

[COdogman]

Those who locked in pricing pre 3/1 have an MSRP under 80k, am I missing something?

If they had a max pack it would likely have been more.

 

[electruck]

Or maybe they just made a mistake god forbid. I know....it's shocking...not everything is subterfuge. Unfortunately that'd mean we'd have to find something else to be angry about today.

Not suggesting subterfuge, just pure and simple laziness. There was a time when reporters and editors checked their facts before publication as accuracy and timeliness of the news was paramount. Mistakes in the news industry meant you were not a reputable source and people subscribed to other papers or watched other broadcasts. But the internet has changed the game in terms of how news is distributed and, more importantly, how the media generates revenue from news. And people like yourself prove that we are now willing to overlook mistakes in reporting. I'm not angry, I'm just mocking the general incompetence of modern news media.

 

[electruck]

I have spent more time than I care to admit reading everything I can find on it and I still don’t feel like I understand it 100%.

Don't feel bad. You can't possibly understand something which has yet to be fully defined. I also don't hold hope that this will be fully defined up front. It will be loosely defined and then people will push various edge cases which will flush out the remaining details over time, perhaps even requiring legal challenges to resolve.

 

[Jac]

Those who locked in pricing pre 3/1 have an MSRP under 80k, am I missing something?

A typical pre-March 1 R1S with a paint option, wheel option and reinforced underbody protection is over $80,000.

 

[COdogman]

A typical pre-March 1 R1S with a paint option, wheel option and reinforced underbody protection is over $80,000.

It is possible those are considered options or accessories and only the “base” MSRP applies here. I actually haven’t seen that defined for this bill anywhere yet LOL.

 

[Jac]

Correct me if I’m wrong here, if we signed the agreement and had $100 of the $1000 reservation cost non-refundable, the income cap and price cap aren’t in place. Am I wrong on that?

I agree with @COdogman (see reply #20) on this question. Based on what we know now, my take is it is prudent to assume the signed binding purchase agreement won’t fly with the IRS — and be pleasantly surprised if it turns out later we all qualify for the $7500 tax credit on our 2023 tax year returns on R1 vehicles delivered in 2023.

 

[sub]

Using MSRP rather than actual sales price seems like huge opening for a loophole.

All manufacturers can just say that the MSRP for all of their EV's is 50K with an asterisk saying that actual dealer pricing may vary.

And then just leave it up to the dealers to add 50-100K "dealer markup" to cover the difference between MSRP and invoice price.

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