EV tax requirements possibly delayed

[TaxmanHog]

IMO, won't be enacted this Congress or next Congress. Already talking about a trillion dollar deficit and EVs don't have any demand problems.

Generally I agree with your position, but then .... things get agreed to in crack-pipe / smoke filled rooms after midnight on the cusp of a CR expiring just prior to a Holiday break [12/16/2022] ..... been there done that have the tee-shirt.

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[Pioneer74]

Generally I agree with your position, but then .... things get agreed to in crack-pipe / smoke filled rooms after midnight on the cusp of a CR expiring just prior to a Holiday break [12/16/2022] ..... been there done that have the tee-shirt.

I have never heard of our Government described like this. And yet, the analogy is so perfect.

 

[VTbuckeye]

So if there is no clarification and it goes back to the old rules would q1,q2 be 3750, q3,q4 1875 and thereafter be 0? Or are we in a position of the old rules are gone, there is no guidance on the new rules, so there will be no tax credit?

 

[jimfigler]

So if there is no clarification and it goes back to the old rules would q1,q2 be 3750, q3,q4 1875 and thereafter be 0? Or are we in a position of the old rules are gone, there is no guidance on the new rules, so there will be no tax credit?

Has ford hit 200k ?

 

[Pioneer74]

Has ford hit 200k ?

Yes. Last quarter.

 

[TaxmanHog]

What they are presently trying to do is harmonize the transition from the old to new law, otherwise the new law is the rule and with my strict conservative interpretation, the old procedures die on 12/31/2022.

 

[TaxmanHog]

Along with revising existing federal tax credits, the Inflation Reduction Act of 2022 (IRA) has also created stipulations for where EV battery raw materials can be sourced from, all in an effort to reduce America’s dependence on China in that regard. Ford CEO Jim Farley has previously stated that he believes the automaker, suppliers, consumers, and commercial customers will all benefit from this new bill, though many in the industry have also asked for clarification on these new tax credits, as well as some revisions in terms of where raw materials can be sourced from, a task that could prove rather difficult. However, something called an EV battery passport may help Ford and other automakers track these materials all the way from the mining through the end-of-life and recycling processes, according to Business Insider.


The idea for an EV battery passport comes from the Global Battery Alliance, a partnership between a number of automakers, EV battery producers, mining firms, and other relevant stakeholders. The concept is relatively simple – provide a way for these companies to track where the raw materials used in EV battery production come from, which in turn will help automakers satisfy the requirements of the IRA, comply with sustainability guidelines, and address any potential human rights issues associated with mining.

This EV battery passport utilizes what the Alliance calls a “digital twin” to gather technical data about those units, including where it was manufactured and what sort of recycled content it may contain, as well as track sustainability-performance indicators and the raw materials used to make it. Ford is already piloting one of these passports in a partnership with recycling companies Cirba Solutions and Li-Cycle, as well as digital-transparency company Everledger as many expect them to become a regulatory requirement in the near future.

“Given especially some of the regulations and the legislation that have been passed in the US recently, and relating to ethical sourcing and second life of batteries and tracking the minerals and materials as they enter the waste stream,” said Peter Maithel, an automotive-industry principal analyst at Infor. “These battery passports are going to become important.”

We’ll have more on the future of EV battery passports soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.

https://fordauthority.com/2022/11/ev-battery-passport-could-help-ford-track-raw-materials/

 

[Maxx]

For now I stand by my prior comments that 12/31/2022 possession is the rule to live by

I was just checking to see how things work with Tax credit if by some miracle I get the truck this year. Went to IRS site to make sure if the truck qualifies and this is what I saw:

Does that mean even if we get the truck in December, since it is 23 model year, we still don't qualify? Are we better off to get a January delivery?

Ref: https://www.irs.gov/businesses/irc-30d-new-qualified-plug-in-electric-drive-motor-vehicle-credit

 

[merek]

I was just checking to see how things work with Tax credit if by some miracle I get the truck this year. Went to IRS site to make sure if the truck qualifies and this is what I saw:

Does that mean even if we get the truck in December, since it is 23 model year, we still don't qualify? Are we better off to get a January delivery?

Ref: https://www.irs.gov/businesses/irc-30d-new-qualified-plug-in-electric-drive-motor-vehicle-credit

I don't believe model year has anything to do with it, and that table is probably just not updated.

 

[Maxx]

I don't believe model year has anything to do with it, and that table is probably just not updated.

If the site was updated we would still see full $7,500 for Q4 deliveries even though Ford hit 200K in Q3, right?

 

[jimfigler]

If the site was updated we would still see full $7,500 for Q4 deliveries even though Ford hit 200K in Q3, right?

There is a full quarter buffer before reduction starts. So Q4 is not changed and is still $7500

 

[TaxmanHog]

I don't believe model year has anything to do with it, and that table is probably just not updated.

Correct, it's just stale data on the site, the '23 truck has the same qualifying factors as the '22 truck, the most crucial point of concern is delivery within the affected tax year to which the credit is applicable.

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