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Tax credit cap

3084 Views 7 Replies 7 Participants Last post by  ChasingCoral
I know that the past EV credit fell thru but there is still a possibility that a separate deal is in the works. On the old credit it capped at 80k Msrp for trucks. I am about to order a lariat but when adding max tow and delivery fee it’s slightly over 80k. Is the delivery fee considered to be part of the MSRP or is it looked at differently. Just want to be prepared in case something gets approved before the truck is delivered.
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the current law has nothing to do with MSRP or purchase price. If the 'new' idea of the BBB plan, or some form of it, eventually passes, you may then see a 'max price' that is imposed, but that, too, is subject to any negotiations before it is voted on, passes, and is signed into law. Chances are, it could be made retro-active, or it could be written to only apply to vehicles purchases AFTER a certain date in the future.
Also, the current credit is likely not going to effect anyone with a current order. Those with upcoming 2023 orders, if they fall well into deliveries during the next mid-year, might see some downfall of the current law and the limitations it entails. Some folks, though, don't realize that the current rules don't allow the current credit to suddenly disappear - it will continue well into TWO quarters AFTER a manufacturer has sold it's 200,000th EV. If that last vehicle is sold on the 1st day of a new quarter, then the credit continues thru that quarter, AND two more, which is almost up to 9 months past the time the 200,000th EV was sold - not BUILT, but SOLD.
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the current law has nothing to do with MSRP or purchase price. If the 'new' idea of the BBB plan, or some form of it, eventually passes, you may then see a 'max price' that is imposed, but that, too, is subject to any negotiations before it is voted on, passes, and is signed into law. Chances are, it could be made retro-active, or it could be written to only apply to vehicles purchases AFTER a certain date in the future.
Also, the current credit is likely not going to effect anyone with a current order. Those with upcoming 2023 orders, if they fall well into deliveries during the next mid-year, might see some downfall of the current law and the limitations it entails. Some folks, though, don't realize that the current rules don't allow the current credit to suddenly disappear - it will continue well into TWO quarters AFTER a manufacturer has sold it's 200,000th EV. If that last vehicle is sold on the 1st day of a new quarter, then the credit continues thru that quarter, AND two more, which is almost up to 9 months past the time the 200,000th EV was sold - not BUILT, but SOLD.
also, the MSRP does not include destination price. If future bills are written with a 'price' maximum, which would either be the MSRP, with all MSRP additions and options, OR the sale price, whichever is greater, then it would not include shipping/delivery/destination fees or dealer fees or prep fees, etc. I didn't write the new bill, so whatever passes, if anything, is subject to a lot of speculation and conjecture at this point. I would suspect that any new bill 'should' allow for a purchase that exceeds the maximum value allowed, with a depreciation of the Credit, or Deduction, by a calculated or prorated amount. If a max is $80k for the $12,500 'credit', but the MSRP is $100k EV, then maybe they can decide to prorate that $12,500 down by a 25% value, which would be the $20k overage x 20% equalling $4,000, making a total 'credit' of $8,500 instead. Or something like that.
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