Does Dest. Charge count against the $80k for tax credit

[awn123]

As subject states, does the destination charge count towards the proposed max price of $80,000 to qualify for the tax credit.

As an example, ER Lariat starts at 79,169 with destination charge, but can a person take the $1,695 Dest. charge off and be at $77,474. Then be able to add some add ons and still be under 80k limit?

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[Royalist]

As subject states, does the destination charge count towards the proposed max price of $80,000 to qualify for the tax credit.

As an example, ER Lariat starts at 79,169 with destination charge, but can a person take the $1,695 Dest. charge off and be at $77,474. Then be able to add some add ons and still be under 80k limit?

Well the destination is non-negotiable and really just added on the MSRP, can't be replaced with less federal rebate. Also, you're not getting the $7,500 off the truck. You're just getting it off your annual taxes when you report it.

 

[awn123]

I didn't mean is the Dest charge negotiable or able to be taken off the price. I meant does the tax credit consider the Dest. charge as part of the vehicle price or is it the base MSRP plus options.

Reason I ask is because there is hardly any space left to add any options to a ER lariat and still be under 80k if Dest charge is part of the price the tax credit considers

 

[adoublee]

There is good reason to believe it is not included in the IRS determination of MSRP. It seems it was not during cash for clunkers. But I don't think there is formal guidance for a law that is not written/adopted. I don't think it is defined within said law drafts either.

 

[Royalist]

I didn't mean is the Dest charge negotiable or able to be taken off the price. I meant does the tax credit consider the Dest. charge as part of the vehicle price or is it the base MSRP plus options.

Reason I ask is because there is hardly any space left to add any options to a ER lariat and still be under 80k if Dest charge is part of the price the tax credit considers

I believe it's off the total price of the vehicle +/- taxes you pay on it. I don't even think I will qualify for the $7500 to begin with.

Here's some info on it:

https://www.edmunds.com/fuel-economy/the-ins-and-outs-of-electric-vehicle-tax-credits.html

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