Ford EV Tax Credits May Run Out Sooner Than Expected

[TaxmanHog]

Back in May, FoMoCo CEO Jim Farley stated that he expected Ford EV tax credits of $7,500 to dry up by late 2022 or early 2023. At that point, Ford would join number of other automakers in that regard, including Tesla, General Motors, and now Toyota, which have already sold over 200,000 EVs – the cut off point for that particular tax credit. But based on new data from the Internal Revenue Service (IRS) and FoMoCo’s latest sales figures, it seems as if Ford tax credits may run out sooner than Farley previously predicted.

The rest of the story with charts...... https://fordauthority.com/2022/07/ford-ev-tax-credits-may-run-out-sooner-than-expected/

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[Maquis]

Ford did not hit 200K in Q2 (I think), which means the full credit is available for the remainder of 2022. It can’t happen any sooner. I don’t really understand this article.

 

[rlbussard]

It is a given that Ford will pass the 200k this quarter. There was speculation that it was going to close to passing the 200k last quarter. The IRS has them at 160,580 at the end of 2021. That leaves only 39,420 left. Per a report from 2 days ago, it is estimated that they sold somewhere from 23k to 33k with most of them being the Mach E. So that leaves an estimated 6k to 16k leftover. Now with the Lightning in full swing, the phase out will almost surely start in October. With the phaseout, that puts them into 2023 before it completely ends.

 

[sotek2345]

I think this article just completely misses the fact that there is a phase our period.

 

[RickLightning]

Article is pure clickbait. He said exactly what is true, that $7,500 will end by end of 2022 or early 2023. This is the kind of junk that forums shouldn't post IMO.

 

[LightningShow]

Yeah…that article is dumb.

 

[SmokingtheMeats]

This was already well known. Not sure what's unexpected about this

 

[EVTruckGuy]

It is a given that Ford will pass the 200k this quarter. There was speculation that it was going to close to passing the 200k last quarter. The IRS has them at 160,580 at the end of 2021. That leaves only 39,420 left. Per a report from 2 days ago, it is estimated that they sold somewhere from 23k to 33k with most of them being the Mach E. So that leaves an estimated 6k to 16k leftover. Now with the Lightning in full swing, the phase out will almost surely start in October. With the phaseout, that puts them into 2023 before it completely ends.

The phaseout won't start in October. If Ford hits 200,000 vehicles this quarter as you said (3rd quarter), the phaseout won't even start until january 2023. The phaseout doesnt start until the 2nd quarter after 200,000 cars are sold, so vehicles bought in 4th quarter of 2022 would still get the full rebate.

You would still get 50% of the tax rebate in quarters 1 and 2 of 2023, and if you bought in quarter 3 of 2023, you would get 25% of the rebate.

So if Ford hits 200,000 vehicles this quarter as you stated, it will be January of 2023 before the phaseout starts and October of 2023 before the rebate is completely gone.

 

[Yellow Buddy]

Did Ford also build a time machine at the Rouge plant?

I mean if fordauthority.com had an editor and changed this line: "it seems as if Ford tax credits may run out sooner than [exactly when] Farley previously predicted."

The entire article would be correct...

 

[rlbussard]

The phaseout won't start in October. If Ford hits 200,000 vehicles this quarter as you said (3rd quarter), the phaseout won't even start until january 2023. The phaseout doesnt start until the 2nd quarter after 200,000 cars are sold, so vehicles bought in 4th quarter of 2022 would still get the full rebate.

You would still get 50% of the tax rebate in quarters 1 and 2 of 2023, and if you bought in quarter 3 of 2023, you would get 25% of the rebate.

So if Ford hits 200,000 vehicles this quarter as you stated, it will be January of 2023 before the phaseout starts and October of 2023 before the rebate is completely gone.

Thanks for clarifying that for me. I knew that and didn't put it in there. I meant that once that quota is hit, then the timer starts on the phase out. I probably confused some people by omitting that part.

 

[CRAIGC540]

I talked to my tax lady today and we simulated what I should owe this year. If it's 6,000 fed and 2,000 state she says I would only get the 6,000 to cover the federal and loose out on the 1500.00 left from the 7,500. Is this correct or will I get 1500.00 to pay the state?

 

[greenne]

I talked to my tax lady today and we simulated what I should owe this year. If it's 6,000 fed and 2,000 state she says I would only get the 6,000 to cover the federal and loose out on the 1500.00 left from the 7,500. Is this correct or will I get 1500.00 to pay the state?

If you only have $6000 federal tax liability you will only get $6000 of the federal tax credit. That is one of the major issues with the current tax credit. You cannot use federal tax credits to pay state taxes or vice versa.

In your situation, yes--you would only get the $6000 and any state tax credits to pay state taxes.

 

[YankeeCP]

I talked to my tax lady today and we simulated what I should owe this year. If it's 6,000 fed and 2,000 state she says I would only get the 6,000 to cover the federal and loose out on the 1500.00 left from the 7,500. Is this correct or will I get 1500.00 to pay the state?

I’m not an accountant but seems like you already got an accountant answer. But yeah pretty sure the credit is only regarding your federal return and nothing to do with state filing

 

[Fordskeptic]

Having "only" $6k fed tax liability is kind of a silver lining though. No?

 

[CRAIGC540]

Having "only" $6k fed tax liability is kind of a silver lining though. No?

Yeah for sure it is..
I just Remember reading different on this forum that if you didn't owe 7500.00 then you get the rest as a refund. Probably wishfull thinking.

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