⚡ Ford Lightning Forum ⚡ banner
1 - 8 of 8 Posts

· Registered
Joined
·
13 Posts
Discussion Starter · #1 ·
I have read articles that say a truck has to be under $74,000 to qualify for the Federal tax credit of $7500 among other requirements. The new law shot down my Manchin would raise that limit to $80,000. Can anybody confirm this to be true or false. It seems important as I could not configure a Lightning with the extended range for under $74,000.
 

· Administrator
2021 Mustang Mach E First Edition, 2016 Nissan Leaf, 2003 Toyota Tacoma, F-150 Lightning Lariat ER
Joined
·
3,088 Posts
I don’t know where you read that but there is no price cap on the current tax credit.
 
  • Like
Reactions: MCM and GDN

· Registered
Joined
·
2 Posts
That article is saying the EV tax credit passed by the House in November had a $74k MSRP limit for SUVs. Modifications to the bill that might be passed and go into law have now raised that to $80k. The current EV tax credit of $7500 that you can get right now today doesn't have an MSRP limit.

This article does a pretty good job of explaining how the current EV tax credit works - https://www.kbb.com/car-advice/how-do-electric-car-tax-credits-work/.

If I were lucky enough to order today, I would not get a Platinum because the MSRP exceeds $80k. Just in case Build Back Better and the new EV tax credit does pass soon and the $80k limit kicks in.
 

· Registered
Joined
·
618 Posts
Thank you! Yeah I see what you're saying. Seems like a good plan if you're retired like me and the credit is important.
BTW, if you do get to order this year, you are going to want to make sure you will owe at least $7500 in taxes next year. Since Build Back Better is dead, it is unlikely this will be changed to a refundable credit. Right now, it is not.
 

· Member
Joined
·
6 Posts
My understanding is that you can get the full $7500 back as a refund as long as you have a total tax liability for the year of $7500 or more (Line 24 on your Form 1040). You may not owe taxes due to tax being withheld, but you can still get the money back when you file your tax return. However, it is not a rebate, so you cannot get more back than what you owed for the entire year.
 

· Registered
2012 F250-PSD, 2006 Harley VROD Destroyer
Joined
·
417 Posts
My understanding is that you can get the full $7500 back as a refund as long as you have a total tax liability for the year of $7500 or more (Line 24 on your Form 1040). You may not owe taxes due to tax being withheld, but you can still get the money back when you file your tax return. However, it is not a rebate, so you cannot get more back than what you owed for the entire year.
A more precise statement is the net taxes on line 18, less any credits on line19 results in the a value of $7500 or more then you're enjoying the full credit for your EV purchase.

In the rare but possible scenario of unused credits at line 22, can not reduce taxes on line 23

The remaining taxes or (ZERO) plus any taxes owed on line 23 (like self employed folks, etc) are still due at line 24, and will be deducted from pre-payments line 25a, 25b, 25c, 25d, estimated taxes line 26 and refundable credits summarized on line 32.

These are the values which affect how much of a refund you might get, short on your estimated payments, wage-withholdings or no longer eligible for EIC or refundable child credits could greatly change the net refund check.

Consult your accountant before making any withholding or ES deposit adjustments.

Rectangle Font Music Parallel Screenshot
 
1 - 8 of 8 Posts
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top