[quikag]

I don't know what Ford is going to do, but I'm a CPA and stressing out. My Lariat ER (roughly $88k MSRP) was built 10/28/22 and it's in purgatory somewhere. I'm concerned I won't get it delivered and purchased before 12/31, so I can easily get the $7,500 credit under the current rules.

After 12/31, the rules change significantly with income limitations as well as MSRP limitations prohibiting me from being eligible. I just got the Ford charger installed late last week and it's mounted sad in my garage waiting for an EV to plug in.

I honestly might choose not to take delivery of the truck if I don't get it until January or later. $7,500 is not a massive amount of money, but it could be the straw that broke the proverbial camel's back on whether I see enough "value" in the Lariat ER to purchase it without the credit.

I think Ford is going to have an issue with how they've increased the prices of these 1st gen EV trucks without having federal tax credit offsets to make the pricing more palatable.

Anyone else in a similar situation? I can't be the only cheap bastard wanting my $7,500.

 

[ChasingCoral]

Can they knock $8k off the price right after they increased it? Sure. Will they? Highly unlikely. That would kill their profit and they know that if you don’t take delivery. Someone else will buy and probably pay a big ADM, too.

You might want to think about buying the truck before taking delivery if it doesn’t get there by 12/31.

 

[jimfigler]

I don't know what Ford is going to do, but I'm a CPA and stressing out. My Lariat ER (roughly $88k MSRP) was built 10/28/22 and it's in purgatory somewhere. I'm concerned I won't get it delivered and purchased before 12/31, so I can easily get the $7,500 credit under the current rules.

After 12/31, the rules change significantly with income limitations as well as MSRP limitations prohibiting me from being eligible. I just got the Ford charger installed late last week and it's mounted sad in my garage waiting for an EV to plug in.

I honestly might choose not to take delivery of the truck if I don't get it until January or later. $7,500 is not a massive amount of money, but it could be the straw that broke the proverbial camel's back on whether I see enough "value" in the Lariat ER to purchase it without the credit.

I think Ford is going to have an issue with how they've increased the prices of these 1st gen EV trucks without having federal tax credit offsets to make the pricing more palatable.

Anyone else in a similar situation? I can't be the only cheap bastard wanting my $7,500.

I can understand. I honestly think any of these trucks over 75-80k is just too much for them. Sure they are hot now but in a few years with new battery and motor tech I'm scared they are going to drop in value drastically.

 

[alockbox]

They absolutely could, but it's not about "knocking the price down". It's more about paring down the features. They're still in it to make a healthy margin where possible, and since the truck is selling out constantly (Farley I think said they have less than 24 hours of inventory stillness), there's really no need to. Someone will buy it.

That being said, I think they actually did this on the sly with the Mach E GT. The entire reason the GT did not come with the panoramic roof or BlueCruise - even though you could get these on a cheaper trim - was to put it below the MSRP required in CA to qualify for additional rebates. This way, you could choose to get those features, or get the rebate. It barely qualified.

It seemed to be very poorly understood by most consumers, who thought Ford was just not including those feature to disguise the price of a "loaded" GT. I don't see them wanting to deal with that negativity again, unfortunately.

 

[THEsocalledfan]

Can they knock $8k off the price right after they increased it? Sure. Will they? Highly unlikely. That would kill their profit and they know that if you don’t take delivery. Someone else will buy and probably pay a big ADM, too.

You might want to think about buying the truck before taking delivery if it doesn’t get there by 12/31.

This is exactly what I'm pushing my dealer to let me do.

 

[Voltz]

I just got the Ford charger installed late last week and it's mounted sad in my garage waiting for an EV to plug in.

Are they sending them pre-sale now? Or, did you buy one directly?

 

[quikag]

Are they sending them pre-sale now? Or, did you buy one directly?

They sent it pre-sale to me. I used Sunrun and it was a pretty seamless process.

Can they knock $8k off the price right after they increased it? Sure. Will they? Highly unlikely. That would kill their profit and they know that if you don’t take delivery. Someone else will buy and probably pay a big ADM, too.

You might want to think about buying the truck before taking delivery if it doesn’t get there by 12/31.

The rules say "purchased and delivered" by 12/31. So, I could easily buy it before 12/31 (if dealer works with me), but how do I technically "take delivery?"

I can understand. I honestly think any of these trucks over 75-80k is just too much for them. Sure they are hot now but in a few years with new battery and motor tech I'm scared they are going to drop in value drastically.

I agree 100%

This is exactly what I'm pushing my dealer to let me do.

It's MSRP, not purchase price. So, even if the dealer did a "fake" $10k discount or whatever and added it back through extended warranty plan for $15k or whatever games, the MSRP is the MSRP.... Let me know if you hear anything otherwise please!

 

[jodgey]

Can they knock $8k off the price right after they increased it? Sure. Will they? Highly unlikely. That would kill their profit and they know that if you don’t take delivery. Someone else will buy and probably pay a big ADM, too.

You might want to think about buying the truck before taking delivery if it doesn’t get there by 12/31.

Can you buy the truck before taking delivery?

 

[rio]

Also, even if you manage to get the MSRP under $80k, under 2023 tax credit rules, it is not clear that any Lightnings would qualify either for the "battery assembly" ($3750) or the "battery sourcing" ($3750) tax credit conditions. I'm waiting on a Pro that will probably not get delivered until January/February. I meet the <$80k condition, but not feeling confident that I will qualify for any tax credit nevertheless. If someone knows anything to the contrary please chime in. The dealer will let me complete the purchase before the end of the year, but given the Law's language ("in service by 12/31"), I'm not sure that I can get away with claiming the credit for 2022 either.

 

[Voltz]

If someone knows anything

This doesn't go for 'knows', but I'm pretty sure the battery assembly requirement will be met.

it is not clear that any Lightnings would qualify either for the "battery assembly" ($3750) or the "battery sourcing" ($3750) tax credit conditions.

I think the cells/pouches are being manufactured at SK Innovations in Georgia and that Ford assembles them into the packs in the US. Component mineral sourcing is a whole 'nother TBD.

https://www.bizjournals.com/atlanta/news/2021/04/21/sk-innovation-georgia-battery-plant-hiring.html

 

[quikag]

Also, even if you manage to get the MSRP under $80k, under 2023 tax credit rules, it is not clear that any Lightnings would qualify either for the "battery assembly" ($3750) or the "battery sourcing" ($3750) tax credit conditions. I'm waiting on a Pro that will probably not get delivered until January/February. I meet the <$80k condition, but not feeling confident that I will qualify for any tax credit nevertheless. If someone knows anything to the contrary please chime in. The dealer will let me complete the purchase before the end of the year, but given the Law's language ("in service by 12/31"), I'm not sure that I can get away with claiming the credit for 2022 either.

That is the annoying thing about buying it before 12/31, but not actually having it "in hand." What is the technical definition of "in service" or "delivered?" Just depends how aggressive you want to get on that interpretationxxxx

 

[rio]

That is the annoying thing about buying it before 12/31, but not actually having it "in hand." What is the technical definition of "in service" or "delivered?" Just depends how aggressive you want to get on that interpretationxxxx

Also, to what extent the IRS actually cares about verifying this. Will they ask for the VIN in the tax filing? I'm not interested in being deceitful, but if this is a fair technicality I would want to take advantage of it.

 

[rio]

This doesn't go for 'knows', but I'm pretty sure the battery assembly requirement will be met.
I think the cells/pouches are being manufactured at SK Innovations in Georgia and that Ford assembles them into the packs in the US. Component mineral sourcing is a whole 'nother TBD.

https://www.bizjournals.com/atlanta/news/2021/04/21/sk-innovation-georgia-battery-plant-hiring.html

That's the most hopeful thing I've heard about this so far. Fingers crossed that you are correct!

 

[Voltz]

Will they ask for the VIN in the tax filing?

Yes.

(TY2021 version of Form, expect revisions)

About Form 8936, Qualified Plug-In Electric Drive Motor Vehicle Credit | Internal Revenue Service

Information about Form 8936, Qualified Plug-In Electric Drive Motor Vehicle Credit, including recent updates, related forms and instructions on how to file. Form 8936 is used to figure credits for qualified plug-in electric drive motor vehicles placed in service during the tax year.

www.irs.gov

 

[alockbox]

Also, to what extent the IRS actually cares about verifying this. Will they ask for the VIN in the tax filing? I'm not interested in being deceitful, but if this is a fair technicality I would want to take advantage of it.

Yes, they absolutely ask for the VIN.

 

[Txxthie]

Ford should be pushing to deliver lightnings before year end, even having the option to pickup at the factory. Most buyers purchasing an $80K vehicle might not quality for IRA tax credits in 2023 due to new income restrictions. Do you qualify for any customer private offers or is $88k the price? If so, your dealership should be working to get that sale done. The market for an $88k EV pickup truck is weakening in this macro environment.

 

[ChasingCoral]

The rules say "purchased and delivered" by 12/31. So, I could easily buy it before 12/31 (if dealer works with me), but how do I technically "take delivery?"

That’s a bigger challenge.

 

[ChasingCoral]

Can you buy the truck before taking delivery?

Yes. The dealer owns it and can sell it once it has been shipped.

 

[shocker]

"The term placed in service means the time that property is first placed by the taxpayer in a condition or state of readiness and availability for a specifically assigned function, whether for use in a trade or business, for the production of income, in a tax-exempt activity, or in a personal activity."

 

[quikag]

"The term placed in service means the time that property is first placed by the taxpayer in a condition or state of readiness and availability for a specifically assigned function, whether for use in a trade or business, for the production of income, in a tax-exempt activity, or in a personal activity."

Okay, what if my specifically assigned function is to have access to drive it within a reasonable window (say 2-3 months?)

Just playing devil's advocate for purpose of discussion.