It would be cool if there was an additional gift to the vehicle manufacturer if the battery was built in the USA. BUT given all the "built in USA" language was changed to "North America" in the final weeks, it's possible patmurphy may(?) be looking at an earlier version when it was part of Build Back Better. Then it had far more aggressive plans to accelerate our efforts related to climate change, economic and national security.
$7500 Tax rebate gone next week
Just learned that the inflation reduction act about to be signed next week changed the $7500 tax rebate criteria and Mach-e won’t qualify for most of the $7500 . Also there’s income threshold and families with >$300k get 0 tax rebate. Some EV car manufactures have offered to convert orders to binding purchase agreements. Here’s a twitter feed asking Ford to do the same:
. Please help share and support. Thanks!
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The prerequisite is to be made in North America which incorporates Mexico and Canada. It doesn't express made in USA.
That is valid. I want to determine from passage showroom why he expressed the vast majority of the discount does not make a difference anymore. Notwithstanding, in the event that your pay is >300k last year, the duty refund will be $0.
Wait, I found an article that supports patmurphey's post. Neat.Look at the link: For the tax credit of $7,500 battery requirements must be met.
I do not see where the OEM gets additional money for the battery.
The Really Big Battery Deal In The IRA That People Are Missing (CleanTechnica)
"Looking at the Actual IRA Language
Section 45X of the IRA concerns “components produced and sold after December 31, 2022.” Near the beginning, it states that “any taxable year is an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each eligible component.” In other words, if you get a tax credit for one component of a battery (raw lithium, for example), you can also go and get a tax credit for another component or even later stage of the same component (the refined lithium, for example). The tax credits are for each major stage of the production process, and that means you can get them for various components of a battery and various stages of processing or putting together those components. You can get the following credits:
- 10% of the cost of battery electrode active materials
- $35/kWh of battery cell capacity
- $10/kW of battery module capacity (or, for a battery module that does not use battery cells, $45/kWh)
- 10% of the cost of producing a battery mineral.
Thank you DougL...Most Google searches of the bill ignore this and the other energy subsidies and credits.
From the article:Thank you DougL...Most Google searches of the bill ignore this and the other energy subsidies and credits.
"So, let’s go back to the example of Tesla (or you can use Ford, GM, or some other company in this hypothetical if you prefer). Tesla could, theoretically, get a tax credit for mining lithium, get a tax credit for refining lithium, get a tax credit for mining nickel, get a tax credit for refining nickel, get a tax credit for producing battery anodes, get a tax credit for producing battery cells, and get a tax credit for producing battery modules."
So who gets the credits? The OEM or the buyer of the car?
Seems unlikely(?) the manufacturer will pass it on to the buyer.From the article:
"So, let’s go back to the example of Tesla (or you can use Ford, GM, or some other company in this hypothetical if you prefer). Tesla could, theoretically, get a tax credit for mining lithium, get a tax credit for refining lithium, get a tax credit for mining nickel, get a tax credit for refining nickel, get a tax credit for producing battery anodes, get a tax credit for producing battery cells, and get a tax credit for producing battery modules."
So who gets the credits? The OEM or the buyer of the car?
Stand corrected:Read my post more carefully... The approximately $3,500 credit that I posted refers to separate part of the IRA that gives manufacturers a $35 per kwh credits for US manufactured batteries plus $10 per kwh for US made battery packs. It might be closer to $3,600 to Tesla for each Model Y if the battery is exactly 80kwh. All Panasonic/Tesla and Giga Austin batteries qualify. It hasn't been determined yet whether Tesla would also get credits for the batteries used in Powerwalls and Megapacks.
These additional credits go to the manufacturer and not the buyer.
Hi,This Is great news and I hope the income requirement does not apply till 2023 as stated in the IRS website. Thanks for the info!
Vehicles Purchased and Delivered between August 16, 2022 and December 31, 2022
If you purchase and take possession of a qualifying electric vehicle after August 16, 2022 and before January 1, 2023, aside from the final assembly requirement, the rules in effect before the enactment of the Inflation Reduction Act for the EV credit apply (including those involving the manufacturing caps on vehicles sold). If you entered into a written binding contract to purchase a new qualifying vehicle before August 16, 2022, see the rule above.
There is no mention in IRS site about the qualifying Federal Credit for 2023 Mustang Mach E models. It's showing only 2022 model. Which means will the car purchased between now and Dec 2022 will not qualify for the Federal Credit?
If you buy and receive a 2023 model year Mach-e on or before December 31st 2022 I think you will be good for the whole $7500 tax break. The list is updated each quarter, 2023 Mach-e should be on it soon.
Thank you Doug!If you buy and receive a 2023 model year Mach-e on or before December 31st 2022 I think you will be good for the whole $7500 tax break. The list is updated each quarter, 2023 Mach-e should be on it soon.
Does anyone have clarity on 23' MME getting the $7,500 tax credit if delivered prior to Jan 1? Mine is arriving this week and want to make sure it qualifies for the $7,500 tax credit. I reach through these two sites and am confused. Mine was a 22' that got bumped to a 23'
Federal Tax Credits for Electric and Plug-in Hybrid Cars
If you purchase and take possession of a qualifying electric vehicle after August 16, 2022 and before January 1, 2023, final assembly of the vehicle had to be completed in North America, otherwise the same rules in effect prior to the enactment of the Inflation Reduction Act apply (including those involving the manufacturing caps on vehicles sold).
Alternative Fuels Data Center: Electric Vehicles with Final Assembly in North America
When I put in my VIN it says Mexico and the chart lists the 22' MME and the 23' Lightening but not the 23' MME
Confused in Cali
Federal Tax Credits for Electric and Plug-in Hybrid Cars
If you purchase and take possession of a qualifying electric vehicle after August 16, 2022 and before January 1, 2023, final assembly of the vehicle had to be completed in North America, otherwise the same rules in effect prior to the enactment of the Inflation Reduction Act apply (including those involving the manufacturing caps on vehicles sold).
Alternative Fuels Data Center: Electric Vehicles with Final Assembly in North America
When I put in my VIN it says Mexico and the chart lists the 22' MME and the 23' Lightening but not the 23' MME
Confused in Cali
You will get access to the full tax credit.
You seem confused as to the first statement and the second statement? You do know that Mexico is in North America, right? And that all MMEs, except China, are made in Mexico?Does anyone have clarity on 23' MME getting the $7,500 tax credit if delivered prior to Jan 1? Mine is arriving this week and want to make sure it qualifies for the $7,500 tax credit. I reach through these two sites and am confused. Mine was a 22' that got bumped to a 23'
Federal Tax Credits for Electric and Plug-in Hybrid Cars
If you purchase and take possession of a qualifying electric vehicle after August 16, 2022 and before January 1, 2023, final assembly of the vehicle had to be completed in North America, otherwise the same rules in effect prior to the enactment of the Inflation Reduction Act apply (including those involving the manufacturing caps on vehicles sold).
Alternative Fuels Data Center: Electric Vehicles with Final Assembly in North America
When I put in my VIN it says Mexico and the chart lists the 22' MME and the 23' Lightening but not the 23' MME
Confused in Cali
Not confused with geography.. confused as to why 22' is showing up for $7,500 credit and 23' isn't for MME while the E-Transit is showing up for 23'You seem confused as to the first statement and the second statement? You do know that Mexico is in North America, right? And that all MMEs, except China, are made in Mexico?
Because it wasn't yet added to the list. It's a non-issue.Not confused with geography.. confused as to why 22' is showing up for $7,500 credit and 23' isn't for MME while the E-Transit is showing up for 23'
IRS: 2023 EV tax credit needs reporting from automakers, sellers
The IRS noted back in October that the new rules were getting fast-tracked—and here it's clear it's setting the mechanism to start with the new 2023 tax year.
I’m in the same boat. Received a 2023 premium in 2022. Do we have to wait for the 2023 mach e to be on the list of approved vehicles before doing our taxes?
You do not. Simply do your taxes.I’m in the same boat. Received a 2023 premium in 2022. Do we have to wait for the 2023 mach e to be on the list of approved vehicles before doing our taxes?
The car is made in North America. Done.
Can you clarify where and who exactly has interpreted the IRS reg to mean the day the car is registered? I had heard this interpretation from a dealership, but didn’t know if they were correct or where exactly they got this information? I ask because in the Turbo Tax Forums some of those folks are saying that Date Placed In Service means the date you take legal ownership which is the day you signed a legal contract and not when you first took physical possession of the vehicle from the dealership…and they never mentioned this concept of the DMV Vehicle Registration Date that the dealer completes and sends to the DMV on the customer’s behalf as the Date Placed In Service. Thank you for any information you can provide.The tax form 8936 very specifically by line 3 provides for "date vehicle was placed in service": This has been interpreted by IRS regs to mean day car is registered. How does making a non revokable deposit, without registering the car, fulfill the requirements of Line 3 of Form 8936? see: https://www.irs.gov/pub/irs-pdf/f8936.pdf
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