[supersenior]

As of 12/31/19 Ford has sold 120795 Clean Air Vehicles As of July 2020 Ford may be eligible for additional 75000 Clean Air Vehicles. Who are the lucky Mach E owners to own these 75000 vehicles? After 200,000 vehicles no rebate. Additionally, there is income eligibility – Taxable income, single over 150K married over 300K is not eligible for rebate/tax credit.

IRC 30D – Plug-In Electric Drive Motor Vehicle Credit Quarterly Sales | Internal Revenue Service
Income Eligibility

 

[timbop]

As of 12/31/19 Ford has sold 120795 Clean Air Vehicles As of July 2020 Ford may be eligible for additional 75000 Clean Air Vehicles. Who are the lucky Mach E owners to own these 75000 vehicles? After 200,000 vehicles no rebate. Additionally, there is income eligibility – Taxable income, single over 150K married over 300K is not eligible for rebate/tax credit.

IRC 30D – Plug-In Electric Drive Motor Vehicle Credit Quarterly Sales | Internal Revenue Service
Income Eligibility

That is incorrect. The $7500 is still available until the END of the quarter AFTER the quarter in which they hit 200,000 EVs sold in the US. The rebate then drops in half to $3750 for TWO quarters, and then $1875 for 2 MORE quarters. So, in reality some rebate is available for 15 months after they hit the mark.

 

[MachDrive]

Ford will not hit 75k sales of plug in electric vehicles in the US this year. The first year’s run of 50k Mach E includes Europe. And not many plug-in Escapes will be sold. Full discount may be available at the beginning of next year as well.

 

[supersenior]

Thanks timbop for the correction and MachDrive for Ford not hitting 75K sales. My problem is eligibility:
Income Eligibility
I am an old guy with a high income and may not be eligible. May be buy it for a grand child to get the rebate.

 

[timbop]

Thanks timbop for the correction and MachDrive for Ford not hitting 75K sales. My problem is eligibility:
Income Eligibility
I am an old guy with a high income and may not be eligible. May be buy it for a grand child to get the rebate.

That site looks like it is for California's state rebate; I don't know that the fed has a limit on income.

 

[ChasingCoral]

Ford will not hit 75k sales of plug in electric vehicles in the US this year. The first year’s run of 50k Mach E includes Europe. And not many plug-in Escapes will be sold. Full discount may be available at the beginning of next year as well.

Yes. 30,000 to the EU and 20,000 to the US. The remaining question is how many Escape PHEVs?

 

[JTK44]

Just read IRC30D: Maybe I missed it: can you point out income eligibility?

The way it works is in effect the opposite: The $7500 is a tax credit: this is important to keep in mind: You will need at least a tax liability of $7,500 to take advantage of the full tax credit: If for example you have a tax liability of $5,000 the $7,500 will offset the $5,000, but you cannot carry forward the unused $2,500 of the credit.

Thanks in advance.

 

[JTK44]

Just checked: the income limitations is for the State of California credits: there is no income limitations for the Federal Tax credit. The full $7,500 Federal Tax Credit will be available for all 2021 MachE.

The income limitations may be unique for California: 48% of all Tesla were registered in California and California was taking a hit with the state rebates going to the very wealthy.

BTW, without getting into the politics, the Senator from Wyoming wanted the $7,500 credit repealed, as it was "going to wealthy Californians buying $100,000 Teslas who would have bought the cars with or without the $7,500 rebate" (paraphased)

In New York where I live, in addition to the $7,500 Federal Tax Credit there is a $2,000 State tax credit with no income limitations. So the net cost of my First Edition will be about $51,000 less X-Plan savings.

Again, as I posted above, this is a credit and is applied to your taxes due: so to take advantage of the full $7,500 you must have a tax liability of least $7,500.

You can google $7,500 EV credit and there are many articles that explain how the tax credit works and the IRS forms you fill out.

Finally, the tax credit is for the year you register the car: it is not the year you buy or place an order for the car but the year it is registered. IRS considers the year you register the year the car is put into service.

Hopes this clarifies.

 

[tbier]

Just to be clear, the credit is claimed in the year you take delivery of the vehicle, registered or not.

 

[JTK44]

No:

Read the IRS regulations: the credit is for when the car is "placed in service" not when you take delivery or placed an order. Placed in service is the year the car is registered. Until it is registered it is not "placed in service".

When you file your tax return, you file form 8936 which requires the date you registered the car.

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

 

[supersenior]

JTK44- Highly appreciate info you provided re Federal Rebate and Form 8936.

 

[timbop]

Just to be clear, the credit is claimed in the year you take delivery of the vehicle, registered or not.

I don't know about elsewhere, but every NEW car I've bought I couldn't take off the lot without getting temp tags, which you can only get by filling out the registration information and paying the fee. Maybe fleet cars are different, but for a new personal vehicle bought from a dealer I don't know how you can take possession without also filling out registration forms the same day. Used cars sold by an individual, sure. My wife once went to a dealer for an oil change and brought a car home to "try out" with dealer tags on it, but we hadn't bought the thing yet so it was kosher. After explaining never to do that again, of course we bought the thing because she got emotionally attached to it (as the salesman knew she would).

 

[JTK44]

As I posted: the key is "placed in service" which means registered not the when you placed your order, signed a contract, take delivery, etc.

 

[JTK44]

Here is where the date of registration might be important:

I have a very large RMD from my IRA that creates a great deal of income tax due. I can use the Federal Tax Credit to offset some of that tax.

Because of the CARE act, RMD's are waived for this year. As I do not need the RMD, I am not taking the RMD and my taxes will be significantly lower.

However, in 2021 I will be required to once again take a substantial RMD, which will require significant taxes due. I would prefer to "place in service", i.e., register my First Edition in 2021 and take advantage of the Federal Tax credit to offset some of the taxes due to my RMD.

I do not think this will be a problem as I still believe, notwithstanding what Ford has published, that the First Editions will not be until the first quarter 2021.

 

[mirandas]

I can't understand what is the difference between sales and revenue in this case? I found only this comparison article differencebtwn.com/difference-between-sales-and-revenue

 

[MachDrive]

I can't understand what is the difference between sales and revenue in this case?

Hi @mirandas ,

Revenue has nothing to do with the US Clean Vehicle Federal Income Tax Credit. Only the total number of vehicles sold.

Once a manufacturer sells a cumulative total of 200,000 qualifying vehicles, the maximum credit amount available to the consumer ($7,500) starts to phase out. First to 1/2 value for the next two yearly quarters, and then to 1/4 value for the following two quarters.

It must also be remembered this is not a rebate off the purchase price of the vehicle. It is a credit against income taxes owed.

The Total credit received cannot exceed the individual’s tax burden. Any excess credit is forfeit. The credit must be taken is the calendar year it is registered (issued license plate tags).

The discussion @JTK44 Posted was to delay registration to the next calendar year to get the highest credit return from next years tax burden. JTK would have to insure the vehicle and leave the vehicle ‘parked’ on their private property until they register for plates for use on public roads.

I hope this helps clarify things.

 

[JTK44]

Actually I would not have to carry insurance until the car is registered. Until I register the car, it does not belong to me.

My last Mercedes came off lease on December 30, 2018. My deal with the dealer was then new car was to replace the one coming off lease on December 30.

The car arrived 30 days early, November 30, 2018. The dealer held the car until December 30 when I took possession. I turned in my old Mercedes, the new one was registered on December 30 (dealer got end of year quota in) and my insurance started on December 30.

I glad you replied: I had no idea what the question meant: sales and revenue:

I am also glad you understood my thinking, if you do not need the car like me - the First Edition will be our third car - about deferral until 2021 to make sure you take advantage of the full $7,500 tax credit.

 

[MachDrive]

Actually I would not have to carry insurance until the car is registered. Until I register the car, it does not belong to me.

My last Mercedes came off lease on December 30, 2018. My deal with the dealer was then new car was to replace the one coming off lease on December 30.

The car arrived 30 days early, November 30, 2018. The dealer held the car until December 30 when I took possession. I turned in my old Mercedes, the new one was registered on December 30 (dealer got end of year quota in) and my insurance started on December 30.

I glad you replied: I had no idea what the question meant: sales and revenue:

I am also glad you understood my thinking, if you do not need the car like me - the First Edition will be our third car - about deferral until 2021 to make sure you take advantage of the full $7,500 tax credit.

If the dealer is willing to hold the car, then that works out.