[me!]

When the Inflation Reduction Act rules for the $7500 change come March due to the amount domestic battery components, is the $7500 gone? Do Ford batteries qualify for either of the $3750 components of it?

My XLT build date has been pushed back 8 times since Oct and I will not take delivery before March.
Screwed?
Is there anything I can sign at the dealerships beforehand to sneak under the wire?

 

[Leaf-clarity]

The unknown part is how the battery component is going to be written up. If it requires all/most components from North America, all manufacturers to my knowledge don’t qualify. Then you will only get half for it being assembled in North America. This new rule is coming out in March, as long as you take delivery before it you will get the full $7500. No one knows the exact date so before March is the safe bet that manufactures are advertising.

Your dealer is invoiced at shipping. Technically they can sell you the car once it is shipped. Will they is how much they are willing to help you. Some on this forum said dealers were willing to date the purchase back, others said they were willing to sell (to date it before 2023) Also financing might be difficult since neither technically has the truck yet. Even if you purchase with cash or financed you paid without getting the truck. Worse case, it gets damaged during delivery and you have to wait longer.

 

[Jon Love]

Plus once the IRS regulations are in place - or even at the start of 2023 - then the 2023 $80K cap comes into play so an XLT with an ER battery & a fairly current MSRP is over the $80k cap so no $7500 offset at all! And it'll pertain if your income is above $150k for a single filer - no soup for you! No $7500!

 

[Voltz]

Tax guidance coming next week, according to Politico.

Treasury guidance on electric vehicle tax credit due next week

Domestic content measures were critical to winning the support of Joe Manchin, who made it a priority for the law to develop a U.S. EV supply chain and end the industry's dependence on Chinese suppliers.

www.politico.com

 

[ChasingCoral]

When the Inflation Reduction Act rules for the $7500 change come March due to the amount domestic battery components, is the $7500 gone? Do Ford batteries qualify for either of the $3750 components of it?

If the truck costs $80K or less it will at least get the $3750 final assembly credit. We'll see the draft IRS rules for the battery components shortly. The draft rules will also indicate when the assembly rules go into effect.

 

[Jon Love]

The wealthy get richer! Given rampant inflation - energy restrictions - & continuing supply chain challenges the $55k/$80k cap means any long range battery / greater than a tiny vehicle: will not qualify for $7500 or half that no matter what.

"The Inflation Reduction Act included provisions aimed at lowering the cost for electric vehicles, while also increasing domestic manufacturing across clean energy technologies and components. Since the law’s enactment, companies have announced tens of billions of dollars in EV and battery manufacturing facilities."

Hilarious - tax incentives for big corporate!

Maybe in a parallel universe somewhere a government can spend citizens into $32T in debt with no end in site & 'transform' an economy to a new utopia.

 

[Voltz]

Tax credit guidance issued 3/31/23:

The critical mineral and battery component requirements will apply to vehicles placed in service on or after April 18, 2023, the day after the Notice of Proposed Rulemaking is issued in the Federal Register.

New clean vehicles placed in service on or after April 18, 2023, are subject to the critical mineral and battery component requirements even if the vehicle was ordered or purchased before April 18, 2023. A vehicle's eligibility for the new clean vehicle credit is generally based on the rules that apply as of the date a vehicle is placed in service, meaning the date the taxpayer takes delivery of the vehicle.

https://www.irs.gov/pub/taxpros/fs-2023-08.pdf

Link downloads 61-page PDF of proposed rule (NPRM):

https://public-inspection.federalregister.gov/2023-06822.pdf

Manchin threatens to sue (predates guidance):

Manchin threatens to sue US Treasury over EV tax credit rules

Senate Energy Committee Chair Joe Manchin said on Wednesday he may go to court after the U.S. Treasury releases guidance later this week on battery sourcing guidance for electric vehicle tax credits.

www.reuters.com