Federal Rebate on 2023 Ford Lightning Rebate in 2022?

[metroshot]

I read on another forum that the 2023 tax credit has a battery math that applies prior to the IRS rule ?
What is this math - doesn't interpret very well....

• Minimum of a 5kWh battery pack = $2,917
• $417/kWh for packs > 5kWh
• Capped at $7,500

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[RickLightning]

THIS! Year is irrelevant. All that matters right now is that it is new.
After Jan 1, incentives depend on final selling price of vehicle + new vs used

Not selling price, MSRP.

 

[jimfigler]

I read on another forum that the 2023 tax credit has a battery math that applies prior to the IRS rule ?
What is this math - doesn't interpret very well....

• Minimum of a 5kWh battery pack = $2,917
• $417/kWh for packs > 5kWh
• Capped at $7,500

That’s from the old rule.

 

[Maquis]

I read on another forum that the 2023 tax credit has a battery math that applies prior to the IRS rule ?
What is this math - doesn't interpret very well....

• Minimum of a 5kWh battery pack = $2,917
• $417/kWh for packs > 5kWh
• Capped at $7,500

The math just comes into play for hybrids. Anything with a battery 18 kWh or greater get the full $7500. (7500 / 417 = 17.98)

 

[Coolbreeze704]

Just want to make sure my dealer is correct. My truck is scheduled to arrive 12/29 but he doubts it will make it here by end of year. He has told me to take advantage of 2022 tax rebate we can close the sale this Friday regardless of the truck making it here by then.

He said we have a Vin and a truck on the way. He can close the deal and I can count the sale in 2022.

Any pushback out there on this. Has anyone else been told the same or actually already completed a sale on a truck that has not arrived yet?

 

[jimfigler]

Just want to make sure my dealer is correct. My truck is scheduled to arrive 12/29 but he doubts it will make it here by end of year. He has told me to take advantage of 2022 tax rebate we can close the sale this Friday regardless of the truck making it here by then.

He said we have a Vin and a truck on the way. He can close the deal and I can count the sale in 2022.

Any pushback out there on this. Has anyone else been told the same or actually already completed a sale on a truck that has not arrived yet?

Should not be an issue.

 

[RickLightning]

Just want to make sure my dealer is correct. My truck is scheduled to arrive 12/29 but he doubts it will make it here by end of year. He has told me to take advantage of 2022 tax rebate we can close the sale this Friday regardless of the truck making it here by then.

He said we have a Vin and a truck on the way. He can close the deal and I can count the sale in 2022.

Any pushback out there on this. Has anyone else been told the same or actually already completed a sale on a truck that has not arrived yet?

What your dealer is proposing is, if you do it, tax fraud on your behalf (when you claim the credit on your tax return). They've done this in the past to get a rebate from Ford - but this is the IRS.

Multiple threads on the IRS regulations. But, in no way shape or form, is the vehicle in your possession or put into use by you, when it hasn't yet been delivered to the dealer.

You may want to consult a tax advisor, but it's pretty clear that if you take delivery after 12/31/22, income and MSRP limits come into play. If the truck MSRP's over $80,000, your SOL.

 

[Sdctcher]

Since the 2023 will now be eligible (should be?) for the full $7,500 because IRS is still busy working on regs until March, the only downside to buying in 2022 is you will claim the credit (or portion thereof) on your 2022 tax return but buying in 2023 will mean you cannot claim until you file in 2024. It all depends on your taxes that will be owed each respective year. Also assuming your MSRP is under $80,000.

 

[Coolbreeze704]

Since the 2023 will now be eligible (should be?) for the full $7,500 because IRS is still busy working on regs until March, the only downside to buying in 2022 is you will claim the credit (or portion thereof) on your 2022 tax return but buying in 2023 will mean you cannot claim until you file in 2024. It all depends on your taxes that will be owed each respective year. Also assuming your MSRP is under $80,000.

Taxes owed or taxes paid? My tax debt is paid since I am W2 but my income creates a taxable income that requires me to pay an amount that well exceeds 7500.

 

[RickLightning]

Taxes owed or taxes paid? My tax debt is paid since I am W2 but my income creates a taxable income that requires me to pay an amount that well exceeds 7500.

Actually, neither.

It's irrelevant what you withhold.
It's irrelevant how much you pay the IRS when you file.

What' relevant is your tax liability.

Your income creates a tax LIABILITY of over $7,500. Then you subtract your EV credit. Then you subtract your withholding, and either get a refund or pay.

 

[Coolbreeze704]

Actually, neither.

It's irrelevant what you withhold.
It's irrelevant how much you pay the IRS when you file.

What' relevant is your tax liability.

Your income creates a tax LIABILITY of over $7,500. Then you subtract your EV credit. Then you subtract your withholding, and either get a refund or pay.

Gotcha. That is what I was reaching for very poorly by saying taxable income.

 

[metroshot]

Just want to make sure my dealer is correct. My truck is scheduled to arrive 12/29 but he doubts it will make it here by end of year. He has told me to take advantage of 2022 tax rebate we can close the sale this Friday regardless of the truck making it here by then.

He said we have a Vin and a truck on the way. He can close the deal and I can count the sale in 2022.

Any pushback out there on this. Has anyone else been told the same or actually already completed a sale on a truck that has not arrived yet?

As @RickLightning said - not a good idea to sign for a vehicle that your dealer has not taken possession of.

It's not only tax fraud, but what happens if the truck arrives damaged or totalled ?

What will Ford, bank, insurance company and IRS say ?

Is it really worth $7500 to be audited by IRS, Ford slaps penalty to the dealer, insurance company denying your claim, and the bank who loaned on a damaged or totalled vehicle?

 

[theblunden]

Just want to make sure my dealer is correct. My truck is scheduled to arrive 12/29 but he doubts it will make it here by end of year. He has told me to take advantage of 2022 tax rebate we can close the sale this Friday regardless of the truck making it here by then.

He said we have a Vin and a truck on the way. He can close the deal and I can count the sale in 2022.

Any pushback out there on this. Has anyone else been told the same or actually already completed a sale on a truck that has not arrived yet?

This is a forum members truck that was about a mile away from the dealer when the transport truck pulled his truck through a low hanging tree branch. The repairs from what I remember reading were going to take 6 months. I wouldn't sign anything for a truck I've never seen for a tax credit.

 

[Sdctcher]

This is a forum members truck that was about a mile away from the dealer when the transport truck pulled his truck through a low hanging tree branch. The repairs from what I remember reading were going to take 6 months. I wouldn't sign anything for a truck I've never seen for a tax credit.

And my truck arrived with a broken mirror that cost $2,500 to repair/replace and two weeks to fix while Ford and the Dealer and Transport fought over who would pay the bill......and my dealer told me it might take 6 months to work out before he could deliver unless I went ahead and gave him 5 stars (after which I got it immediately). So beware of dealers in sheep clothing.

 

[Coolbreeze704]

All great points. I will just monitor shipping and hope it get here by the 31st. With an ETA of the 23rd to the 29th there is a chance I would think.

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