[rio]

I have a Lightning Pro on order with a late December scheduled production date. I'm trying to figure out my options for claiming the full $7500 tax credit. Since the car won't be delivered until at least January, it's not clear that the Lightning will qualify for the full credit amount (battery sourcing / assembly provisions) in 2023.

The dealer said that I can complete the purchase of the car before the end of the year if I pay it in full (cash). Does anybody know if this would allow me to claim the tax credit for 2022? In other words: does the tax credit apply to the year when the vehicle was purchased, or when the vehicle was actually delivered?

Thanks. Also, if anyone has any insight as to the tax credit eligibility for the Pro in 2023, that would be great as well! From everything I've read, it seems unclear.

 

[ChasingCoral]

There are multiple threads about this already. The search feature at the top of the page is your friend!

Start here:

Tax Credits

Good news! If you ordered but don't have a signed contract for the Ford F150 Lightning but are still waiting for the truck to be delivered to your dealer you are in luck as you are still eligible for the $7,500 tax credit. The only change to the existing electric vehicle credit that takes effect...

www.lightningowners.com

You may be able to complete purchase before the end of the year on a truck that has already been built. The language is a little vague. That's the sort of advice you need to get from a tax professional.

 

[rio]

Thank you CC. Yes, I've been following that and other similar threads, perhaps I should have posted there directly. The specific question on claiming the tax credit based on purchase vs delivery date I thought could use its own thread. I agree that ultimately a tax professional can answer it, but seems like a simple and straightforward scenario that hopefully somebody in here has dealt with in the past.

 

[Brew]

I don't know that anyone would be able to answer your question because the scenario you described is not an option for most if not all. If they're actually going to sell it to you on paper there really isn't any way the IRS would know any differently short of checking registration data and I can't imagine why they would do that. One of the reasons they probably won't consider doing that is because they wouldn't anticipate a dealer making that offer. I don't even know if that's legal (depends on your state but to be clear I don't know of any state that would consider that a legal sale--the dealer doesn't yet own the vehicle to sell to you). That could be one reason they're saying it needs to be cash (the other reason, which is a certainty not a maybe, is that no lender can/will lend on a vehicle that they can't yet own). It means for you, if you want to play around with this, that you need to ensure that you have a fully executed sales contract and not just paying cash for a bill of sale. But I don't know how they will manage to sell you a vehicle that isn't in their inventory to sell--seems like the computer system wouldn't even allow for the possibility.

 

[PNWest]

I'm in the same boat and the other threads don't address this specific scenario. The bill language is specific about purchase AND possession between 8/16 and 12/31 (North American assembly the only new requirement), but vague for those of us with orders after 8/16 and expect to take possession AFTER 1/1/23. How the IRS is implementing the bill is developing, and looks like there is a chance for additional legislative adjustments. We will see how it shakes out. In the meantime, I have the purchase agreement and down payment documentation, which is considered a binding contract, in the event that I can claim the credit under the '22 requirements.

 

[ChasingCoral]

The trucks are sold from Ford to the dealership when they leave the plant. That means that the dealership is able to initiate full sales paperwork on the vehicle once it is built and has left the plant. Because I left on a 5-week trip a week before my Lightning was delivered, I initiated the sale from the dealership before I left the country. The real question regards buying with cash. If you plan to take out a loan from a non-Ford source, they may not be willing to loan you the money without the truck being on the lot. However, if you have another way to have the cash in hand, you should be fine.

 

[Leaf to Lightning : )]

I purchased mine 10 days before it actually arrived, with the paperwork, temporary tag, and even the Title showing the earlier date. There is no paperwork or signatures showing any other dates, other than if the dealer's 'check in' paper shows anything different.
I was completely ok with this since I already knew the truck was in transit, and was even tracking it myself.

 

[Mr. Mazak]

Speaking of the tax credit, I finally was able to order my 2023 Lariat two days ago. One of my biggest incentives to buy this truck was the $7,500.00 tax credit. I read in another thread that if my msrp is more than 80k (which mine is) that I wouldn't be eligible for for the credit. How true is this and is there ANY way to get around this cap, or is it a done deal and there's nothing I can do about it ?

Thanks.

 

[Voltz]

Whose insurance coverage insures your truck (and you) after you bought it in transit? Can you decline to accept a totaled vehicle after you bought it?

 

[Voltz]

I read in another thread that if my msrp is more than 80k (which mine is) that I wouldn't be eligible for for the credit. How true is this and is there ANY way to get around this cap, or is it a done deal and there's nothing I can do about it

Short of abandoning the order or changing the order to a lower MSRP, not much you can do. Some of this is still in flux and they could define MSRP as base MSRP. Doubtful. Also, the full tax credit on Lightning depends on details of the battery manufacture. That's an unknown now, AFAIK.

 

[rio]

Whose insurance coverage insures your truck (and you) after you bought it in transit? Can you decline to accept a totaled vehicle after you bought it?

That's a very good point. Definitely something to discuss with the dealer. I had not thought about this.

Also, the full tax credit on Lightning depends on details of the battery manufacture. That's an unknown now, AFAIK.

This is a little frustrating. I have not seen any information that sheds light on this. For those of us with vehicles already scheduled for production (but with expected 2023 delivery), surely the battery manufacturing details must already be set in stone. The lack of any concrete information about this makes me think that we won't qualify for any of it. That's why I'm seriously considering taking a gamble and paying for it in full upfront before the end of the year.

 

[ChasingCoral]

Speaking of the tax credit, I finally was able to order my 2023 Lariat two days ago. One of my biggest incentives to buy this truck was the $7,500.00 tax credit. I read in another thread that if my msrp is more than 80k (which mine is) that I wouldn't be eligible for for the credit. How true is this and is there ANY way to get around this cap, or is it a done deal and there's nothing I can do about it ?

Thanks.

Very True:

1. MSRP of vehicle must be $80k or less for SUVs, Vans and Trucks. $55k for all other vehicles. (Page 377, line 4)

Here's every electric vehicle that qualifies for the current US federal tax credit

As sales of electric vehicles continue to surge, many new and prospective customers have questions about qualifying for federal tax...

electrek.co

You might get around it depending on how MSRP is interpreted. IRS has not yet issued that part of the guidance. What we know so far is at:

Credits for New Electric Vehicles Purchased in 2022 or Before | Internal Revenue Service

If you bought or leased a new, qualified plug-in electric vehicle (EV) in 2022 or before, you may be eligible for a clean vehicle tax credit up to $7,500 under IRC 30D.

www.irs.gov

The question will be if the IRS uses the full MSRP (ER Lariats are over $80K), or base MSRP before options (Lariats are under $80K). Stay tuned.

 

[ChasingCoral]

The IRS has now confirmed Lightnings up to $80K are eligible for up to $7500 tax credit in 2023. Note that this does not change the battery sourcing change that is scheduled to be announced in March 2023.

Manufacturers and Models for New Qualified Clean Vehicles Purchased in 2023 or After | Internal Revenue Service

List of vehicles that are eligible for a 30D clean vehicle tax credit and the amount of the qualifying credit, if purchased between 2023 and 2032.

www.irs.gov

 

[ChasingCoral]

As of today, the IRS has weighed in on what is included in MSRP:

Q3. How will I know what the manufacturer's suggested retail price (MSRP) is for a vehicle? (added December 29, 2022)
A3. The MSRP will be on the vehicle information label attached to each vehicle on a dealer's premises. The MSRP for this purpose is the base retail price suggested by the manufacturer, plus the retail price suggested by the manufacturer for each accessory or item of optional equipment physically attached to the vehicle at the time of delivery to the dealer. It does not include destination charges or optional items added by the dealer, or taxes and fees.

Topic B — Frequently Asked Questions About Income and Price Limitations for the New Clean Vehicle Credit | Internal Revenue Service

Frequently Asked Questions about income and price limitations for the new Clean Vehicle Credit.

www.irs.gov

tl;dr: All trim costs including ER count toward MSRP, D&D and anything dealer added does not.

 

[THEsocalledfan]

Well, I'm officially screwed by our wonderful leaders, I guess. Well done, Congress, well done.