Tax Incentive Cap

[Tommy]

Hi,

Could someone please clarify for me what prices and fees are included in the $80,000 cap for the tax break incentive? I have been under the impression that it is the MSRP plus any other options and accessories that I add on to the truck. Do the destination and delivery charges, documentation fees, or any other dealer fees count toward this cap. Results will determine whether I get an XLT XR or Lariat XR.

Please and Thank You for any guidance
Tommy

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[Zprime29]

Window sticker bottom line - delivery and destination.

 

[bmwhitetx]

Window sticker bottom line - delivery and destination.

Also minus the $500 charger if you get that since it is not attached to vehicle.
You can barely get a Lariat ER, just can't add a lot of extras.

 

[Randall Stephens]

Hi,

Could someone please clarify for me what prices and fees are included in the $80,000 cap for the tax break incentive? I have been under the impression that it is the MSRP plus any other options and accessories that I add on to the truck. Do the destination and delivery charges, documentation fees, or any other dealer fees count toward this cap. Results will determine whether I get an XLT XR or Lariat XR.

Please and Thank You for any guidance
Tommy

Got a window sticker for what you’re considering?

 

[RickLightning]

Hi,

Could someone please clarify for me what prices and fees are included in the $80,000 cap for the tax break incentive? I have been under the impression that it is the MSRP plus any other options and accessories that I add on to the truck. Do the destination and delivery charges, documentation fees, or any other dealer fees count toward this cap. Results will determine whether I get an XLT XR or Lariat XR.

Please and Thank You for any guidance
Tommy

From the IRS website: "MSRP is the retail price of the automobile suggested by the manufacturer, including manufacturer installed options, accessories and trim but excluding destination fees. It isn't necessarily the price you pay. "

Also minus the $500 charger if you get that since it is not attached to vehicle.
You can barely get a Lariat ER, just can't add a lot of extras.

Can you show where the charger is NOT included in the calculation?

 

[alockbox]

Also minus the $500 charger if you get that since it is not attached to vehicle.
You can barely get a Lariat ER, just can't add a lot of extras.

The charger is absolutely included if it a line item on the Monroney sticker. It will be the MSRP on the Monroney Window Sticker, before Destination. Nothing else matters except your tax liability. Not what you paid, not what you financed, not what discounts or freebees you got.

I saw a travesty of an order abandoned at a dealership. It was like 80,050.00 because someone ordered it with the sliding tonneau cover, and so it was a line item on the sticker even though its dealer installed anyway. Had they just purchased that separately, would have effectively gotten themselves the tonneau for free and over $5,000 back.

 

[Zprime29]

Dealer should have stepped in and educated that buyer. That's how you earn customer loyalty. Missed opportunity by that dealer.

 

[Zprime29]

Also minus the $500 charger if you get that since it is not attached to vehicle.
You can barely get a Lariat ER, just can't add a lot of extras.

I seem to recall there was something about the options needing to be "attached" but also that there was some debate to it and couldn't find a good source. Always best to assume it counts. The only thing explicitly excluded was delivery & destination charge.

 

[bmwhitetx]

Can you show where the charger is NOT included in the calculation?

It was in the Treasury / IRS Guidance (Notice 2023-1) that came out earlier this year where they were defining what is MSRP, what is an SUV, etc. https://www.irs.gov/pub/irs-drop/n-23-01.pdf

§ 1(1).
.03 Manufacturer’s Suggested Retail Price
For purposes of § 30D(f)(11)(A), “manufacturer’s suggested retail price” means the sum of: (A) the retail price of the automobile suggested by the manufacturer as described in 15 U.S.C. 1232(f)(1); and (B) the retail delivered price suggested by the manufacturer for each accessory or item of optional equipment, physically attached to such automobile at the time of its delivery to the dealer, which is not included within the price of such automobile as stated pursuant to 15 U.S.C. 1232(f)(1), as described in 15 U.S.C. 1232(f)(2). This information is reported on the label that is affixed to the windshield or side window of the vehicle, as described in 15 U.S.C. 1232.

Emphasis added. The charger is not physically attached at time of delivery, it is free to move around the frunk. (Edited to refer to the mobile charger not FCSP which is mailed - sorry Zprime).

 

[Zprime29]

The mobile charger isn't mailed, it came in the truck. Does it not for the 2023's?
That said, anyone looking to order would do well to remove it just for the sake of buying a better mobile EVSE in additional to potential IRS credits.

 

[bmwhitetx]

The mobile charger isn't mailed, it came in the truck. Does it not for the 2023's?
That said, anyone looking to order would do well to remove it just for the sake of buying a better mobile EVSE in additional to potential IRS credits.

Yeah, I realized that but I think it still applies since it is not attached. What would be great is if they allowed the FSCP to be sold separately and not bundled in. That would allow a Lariat ER to get another ~$1300 in options (like Max Tow or Tow Tech) and stay under the cap.

 

[Cara]

It was in the Treasury / IRS Guidance (Notice 2023-1) that came out earlier this year where they were defining what is MSRP, what is an SUV, etc. https://www.irs.gov/pub/irs-drop/n-23-01.pdf

§ 1(1).
.03 Manufacturer’s Suggested Retail Price
For purposes of § 30D(f)(11)(A), “manufacturer’s suggested retail price” means the sum of: (A) the retail price of the automobile suggested by the manufacturer as described in 15 U.S.C. 1232(f)(1); and (B) the retail delivered price suggested by the manufacturer for each accessory or item of optional equipment, physically attached to such automobile at the time of its delivery to the dealer, which is not included within the price of such automobile as stated pursuant to 15 U.S.C. 1232(f)(1), as described in 15 U.S.C. 1232(f)(2). This information is reported on the label that is affixed to the windshield or side window of the vehicle, as described in 15 U.S.C. 1232.

Emphasis added. The charger is not physically attached at time of delivery, it is free to move around the frunk. (Edited to refer to the mobile charger not FCSP which is mailed - sorry Zprime).

This would also indicate that an item installed by the dealer after said dealer receives the truck is not included. So in the Tonneu cover example ($80,050), it was incorrect to include the cover in the price. I suspect the purchaser could have provided proof that was not attached to the dealer delivered truck and received the tax credit. Unfortunate.

 

[RichB-HTX]

That MSRP limit for the tax credit just needs to be raised as an update to the IRA but not enough in congress will agree to that especially in a almost election year. I understand why they have it, but these are trucks, not luxurious high end sedans. My XLT qualified and the dealer said Lariats and up were sitting because the price was too high and people wanted the credit.

 

[LancerBoom]

All Lariats should qualify. It’s $80k and you don’t count the $1995 destination/delivery. Mine qualifies - Lariat ER with max tow and power running boards - $80,145 on MSRP but subtract delivery.

Also the $80k MSRP is for personal vehicle credit if your MAGI is under $300,000 married filing jointly.
https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after

If you’re registering it as a business vehicle, ie it’s on a depreciation schedule, then there is no MSPR dollar limit and no MAGI limit. You can get the $7500 on any Lightning if you’re a business or if self employed and have a MAGI over $300,000 because it falls under the new Commercial Clean Vehicle section of the IRA:
https://www.irs.gov/credits-deductions/commercial-clean-vehicle-credit

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