[User3657]

I don't know what any of this means but apparently congress is postponing some parts of the act as of today so my question is...

Does the plugin currently offer the full 7500$ rebate? What about after January 1?

 

[acd]

My understanding is that you get $6,843 if you buy an Escape PHEV by Dec. 31. It's pro-rated by battery size.

Nobody knows for certain what will happen in January. Until this week it sounded like nothing would qualify come Jan. 1. Just this week we started seeing news stories that the IRS may delay implementation of origin restrictions.

Maybe you'll get $7,500 if you buy a new Escape in February, maybe you won't get anything. Until the IRS actually publishes guidance, nobody can promise anything.

 

[Donodo]

Just to clarify, there is no rebate, but there is a tax credit available for the 2022 PHEV Escape. The amount of the tax credit is $6843, which means you will need to owe Uncle Sam at least the same amount in taxes in order to qualify for receiving the full amount as a tax refund.

And as eloquently stated above no one knows what the 2023 vehicle qualifications at this time

 

[jpohlman]

After Jan 1 it comes down to where the battery is produced, a vehicle with a battery produced in US/CA/MX gets the credit and if it's from outside those countries the rebate doesn't apply.
As of a few months ago Ford wouldn't commit to where its batteries would be sourced from or how they would track it.

 

[Salkin]

Well, the interpretation of the latest news about the delay in implementation of the part of the IRA means, for at least the first quarter of 2023, any BEV or PHEV with final assembly in North America will enjoy a full $7500 tax credit no matter where the battery mineral (must be at least 40% from the US or free trade partner by IRA) or component (must be at least 50% from the US or free trade partner by IRA) are sourced. After the IRA battery source requirements are fully implemented, there may be a reduction of the tax credit either to $3750 if at least one of the requirements is met or $0 if neither of the requirements is met.

If you feel lucky, then buying a North American-built BEV or PHEV in the first quarter of 2023 would be advisable. I am considering purchasing a 2023 Bolt with an MSRP of $26500 (destination fee included) as soon as the calendar changes to 2023. GM and Tesla will enjoy the tax credit again, and without stipulation of battery source requirement, Chevy Bolt will be $19000 BEV with a full tax credit.

For Escape PHEV, any purchased and put into service before the end of the year 12/31/22 is eligible for a max of $6,843 tax credit for the 2022 income tax return. For any purchased after Jan 1, as long as the battery source requirement part of the IRA is delayed, the tax credit is $7500. But after the implementation of the battery source requirements, depending on where and how Ford builds the battery, the tax credit amount may be reduced either to $3750 if at least one of the requirements is met or $0 if neither of the requirements is met.

 

[Stevedbvik1]

Well, the interpretation of the latest news about the delay in implementation of the part of the IRA means, for at least the first quarter of 2023, any BEV or PHEV with final assembly in North America will enjoy a full $7500 tax credit no matter where the battery mineral (must be at least 40% from the US or free trade partner by IRA) or component (must be at least 50% from the US or free trade partner by IRA) are sourced. After the IRA battery source requirements are fully implemented, there may be a reduction of the tax credit either to $3750 if at least one of the requirements is met or $0 if neither of the requirements is met.

If you feel lucky, then buying a North American-built BEV or PHEV in the first quarter of 2023 would be advisable. I am considering purchasing a 2023 Bolt with an MSRP of $26500 (destination fee included) as soon as the calendar changes to 2023. GM and Tesla will enjoy the tax credit again, and without stipulation of battery source requirement, Chevy Bolt will be $19000 BEV with a full tax credit.

For Escape PHEV, any purchased and put into service before the end of the year 12/31/22 is eligible for a max of $6,843 tax credit for the 2022 income tax return. For any purchased after Jan 1, as long as the battery source requirement part of the IRA is delayed, the tax credit is $7500. But after the implementation of the battery source requirements, depending on where and how Ford builds the battery, the tax credit amount may be reduced either to $3750 if at least one of the requirements is met or $0 if neither of the requirements is met.

I’m really interested in the wording that will be used with the March delay. Wondering if it will be “take delivery before” or “ have a binding contract order or take delivery before “ We ordered in September so hoping for the latter.

 

[Salkin]

I’m really interested in the wording that will be used with the March delay. Wondering if it will be “take delivery before” or “ have a binding contract order or take delivery before “ We ordered in September so hoping for the latter.

Yeah, there is still a lot of "uncertainties" surrounding the implementation of IRA. The US treasury said "sometime in March" so, it is not even clear when this moratorium would end. The article below explains what "may" happen. But again, it is still largely unknown. I had to purchase the 2022 Escape PHEV before the end of this year. I had planned to purchase a BEV (Subaru Solterra) this year and allocated enough retirement funds into Roth to increase my tax liability. But, that plan changed mid-year due to a delay in Solterra production and the IRA enactment. If I did not buy Escape PHEV this year, Uncle Sam would take the increased tax from me.

US Treasury delays EV battery guidance; more vehicles could qualify for 2023 tax credits

The United States Treasury department announced it will delay its guidance in regard to the sourcing requirements for battery materials...

electrek.co

 

[acd]

Yeah, there is still a lot of "uncertainties" surrounding the implementation of IRA. The US treasury said "sometime in March" so, it is not even clear when this moratorium would end.

The one Treasury press release we're all working from does promise a FAQ "by year's end." Not much time left there, so hopefully all questions will be answered soon.

We were planning to replace our second car with a Bolt this fall. The moratorium doesn't help us. Even if I wanted to buy a Bolt before March, there are none to be had locally. Closest dealer with stock is asking $5k over MSRP, and I hate buying from a scalper.

I'd have no problem putting money down on a custom order before March, though.

It's funny how little this tax credit actually incentivizes car sales, once you factor in all the fine print. A guy could get pretty cynical about this sort of thing.

 

[surfstar]

$500 Costco discount on Bolts through 1/3/23 - so if you can time it right, you might get an under MSRP Bolt + $7500 tax credit.

The tax credit is the only reason we purchased a Prius Prime and Rav4 Prime. Also the only reason I ordered an Escape PHEV. Without the tax credit, a hybrid or regular ICE would have provided a much better value. The tax credit is supposed to help sell the higher priced battery options, which will come down in price as more units are sold. Just like solar tax credit. Solar costs have greatly come down in the last 10-15 years. Its not a great system, but its better than nothing and without the EV tax credit, I don't think we'd see many of these PHEVs as transition vehicles.

 

[acd]

And we have more details:

https://home.treasury.gov/news/press-releases/jy1179

https://www.irs.gov/pub/taxpros/fs-2022-42.pdf

 

[JimSmith94]

And we have more details:

https://home.treasury.gov/news/press-releases/jy1179

https://www.irs.gov/pub/taxpros/fs-2022-42.pdf

Heck yeah, the 2023 Escape PHEV is included for the full $7,500!

 

[Stevedbvik1]

Heck yeah, the 2023 Escape PHEV is included for the full $7,500!

As long as you take delivery before they implement the battery requirements in March. After that is unknown. The race is on

 

[Stevedbvik1]

And we have more details:

https://home.treasury.gov/news/press-releases/jy1179

https://www.irs.gov/pub/taxpros/fs-2022-42.pdf

Good find! Thanks for sharing!

 

[acd]

As long as you take delivery before they implement the battery requirements in March. After that is unknown. The race is on

From that FAQ:

Until the day after the Treasury Department and the IRS issue proposed guidance on the critical mineral and battery component requirements of the new clean vehicle credit under § 30D, the credit is calculated as a $2,500 base amount plus, for a vehicle which draws propulsion energy from a battery with at least 5 kilowatt hours of capacity, $417, plus an additional $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours, up to an additional $5,000 beyond the base amount. In general, the minimum credit amount will be $3,751 ($2,500 + 3 * $417), representing the credit amount for a vehicle with the minimum of 7 kilowatt hours of battery capacity

What's the PHEV battery? I think this is the same formula as before, so we're only looking at the $6,843.

Nothing to sneeze at though.

 

[Salkin]

Yep,

From that FAQ:

Until the day after the Treasury Department and the IRS issue proposed guidance on the critical mineral and battery component requirements of the new clean vehicle credit under § 30D, the credit is calculated as a $2,500 base amount plus, for a vehicle which draws propulsion energy from a battery with at least 5 kilowatt hours of capacity, $417, plus an additional $417 for each kilowatt hour of battery capacity in excess of 5 kilowatt hours, up to an additional $5,000 beyond the base amount. In general, the minimum credit amount will be $3,751 ($2,500 + 3 * $417), representing the credit amount for a vehicle with the minimum of 7 kilowatt hours of battery capacity

What's the PHEV battery? I think this is the same formula as before, so we're only looking at the $6,843.

Nothing to sneeze at though.

OK, sound like they are going to keep using the old (or current as of 2022) 30D rules for calculating the credit. So, it means for 2023 (or 2022) Escape PHEV, the credit will be $6843 until IRS settles on the battery requirement guideline sometime in March.

I already bought a 2022 Escape PHEV to apply for the credit in the 2022 income tax return. Now, I am going to look for a Bolt EV to get a delivery before March. If they don't change the MSRP, the 2023 Bolt EV will be $26500 (including the destination fee) minus the full $7500 tax credit until the battery requirement kicks in, making it one of the most affordable new BEVs in the US.

 

[Tired_Lizard]

Yep,
...
I already bought a 2022 Escape PHEV to apply for the credit in the 2022 income tax return. Now, I am going to look for a Bolt EV to get a delivery before March. If they don't change the MSRP, the 2023 Bolt EV will be $26500 (including the destination fee) minus the full $7500 tax credit until the battery requirement kicks in, making it one of the most affordable new BEVs in the US.

Ditto, for my 2022 Escape PHEV, I filled in my 2022 tax return with the $6843 credit & 30% Alternate Fueling Credit for my EVSE via FreeTaxUSA today so it'll be sent to IRS on Jan 23. And have a deposit on an in transit 2023 Bolt EUV that should arrive soon, maybe next week.

 

[Salkin]

I tried to file mine with TurboTax last night. Unfortunately the Form 8936 was not ready yet on the TurboTax. I have to wait for a while. It said the finalized form will be ready by Feb 2.

 

[Stevedbvik1]

I tried to file mine with TurboTax last night. Unfortunately the Form 8936 was not ready yet on the TurboTax. I have to wait for a while. It said the finalized form will be ready by Feb 2.

That’s interesting , curious to see what changes are made

 

[Salkin]

That’s interesting , curious to see what changes are made

I don't know what changes are going to be made. The currently available Form 8936 at IRS was revised in Jan 2022. With big changes made by IRA enactment last year, the form must needs to be revised again. Haven't had the paper version of printed tax forms for years. But when it is finalized, I will compare it to my last year Form 8936. This will be my 4th Form 8936.

 

[Stevedbvik1]

I don't know what changes are going to be made. The currently available Form 8936 at IRS was revised in Jan 2022. With a big changes made by IRA enactment last year, the form must needs to be revised again. Haven't had the paper version of printed tax forms for years. But when it is finalized, I will compare it to my last year Form 8936. This will be my 4th Form 8936.

Found this. Draft of January 2023 revision

https://www.irs.gov/pub/irs-dft/i8936--dft.pdf