EV Credit - Timing end of year

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Good Life
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Joined: Thu Nov 25, 2021 4:55 pm

EV Credit - Timing end of year

Post by Good Life »

I'm looking at purchasing a Mach-E, and specifically want to buy it this year for the $7500 tax credit. I don't think that I will qualify for the tax credit if build back better passes as is (income limits).

The wait time on getting these cars is 20-28 weeks. From what I understand, all that is needed right now is a downpayment of like $500 to order the car, then you pay the rest later. Does that downpayment count as "purchasing" the vehicle so that I could claim the $7500 tax credit in 2021? Or do I have to wait until I receive the vehicle in like 20-28 weeks, and pay in full, to count it as purchased for tax credit purposes?
kirkus02
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Joined: Sun Nov 25, 2018 6:07 pm

Re: EV Credit - Timing end of year

Post by kirkus02 »

It's when you actually purchase the Mach-E (delivery). The $500 is not putting a down payment, you're putting a deposit to reserve the car (which can be cancelled).
fabdog
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Joined: Wed Jan 16, 2013 12:59 pm
Location: Williamsburg VA

Re: EV Credit - Timing end of year

Post by fabdog »

here's form 8936, where you claim the credit... required (among other things) are date in service, and VIN number... which you'll have when you actually take possession of the car

https://www.irs.gov/pub/irs-pdf/f8936.pdf

Mike
knowledge
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Joined: Wed Mar 02, 2011 4:44 pm

Re: EV Credit - Timing end of year

Post by knowledge »

I'm doing the exact opposite, I've delayed taking delivery of the Model 3 until I see the EV credit come back for Tesla. Another two months or so won't kill me.
mervinj7
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Re: EV Credit - Timing end of year

Post by mervinj7 »

fabdog wrote: Thu Nov 25, 2021 7:03 pm here's form 8936, where you claim the credit... required (among other things) are date in service, and VIN number... which you'll have when you actually take possession of the car

https://www.irs.gov/pub/irs-pdf/f8936.pdf

Mike
+1 The correct answer is to always to look at the relevant IRS forms.
Skip Towne
Posts: 21
Joined: Tue Aug 07, 2018 2:57 pm

Re: EV Credit - Timing end of year

Post by Skip Towne »

Don't assume you MUST wait the delivery cycle often discussed for the Mustang Mach-e. I know, I walked into a dealer and bought one off the lot in August. Might habe been a fluke, but here is what happened....

I'd been considering buying one for all the reasons everyone is - its an EV, would get the EV credit, EVs seem like it is something I could do to help the world in a small way. Oh, yeah, and the MME is a super cool car.

I couldn't order a $50-60k car without sitting in one first, I'm not that crazy. My local dealer got a base model in as a demo. I went, drove it and loved it! I told him I was going to order the Premium model I wanted (long range battery, 4WD etc) As luck would have it, they also had an 6 month ordered vehicle come in only to have the deal fail for lack of financing (price had gone up measureably and the dealer wanted another Additional Dealer Mark up on top of that). It was the exact car I would have ordered, all the feratures and even my preferred color.

I went from dealer visit to see if I could like the MME to owner in 48 hours.

Try it. Your mileage may vary.
kirkus02
Posts: 11
Joined: Sun Nov 25, 2018 6:07 pm

Re: EV Credit - Timing end of year

Post by kirkus02 »

Skip Towne wrote: Thu Nov 25, 2021 11:04 pm Don't assume you MUST wait the delivery cycle often discussed for the Mustang Mach-e. I know, I walked into a dealer and bought one off the lot in August. Might habe been a fluke, but here is what happened....

I'd been considering buying one for all the reasons everyone is - its an EV, would get the EV credit, EVs seem like it is something I could do to help the world in a small way. Oh, yeah, and the MME is a super cool car.

I couldn't order a $50-60k car without sitting in one first, I'm not that crazy. My local dealer got a base model in as a demo. I went, drove it and loved it! I told him I was going to order the Premium model I wanted (long range battery, 4WD etc) As luck would have it, they also had an 6 month ordered vehicle come in only to have the deal fail for lack of financing (price had gone up measureably and the dealer wanted another Additional Dealer Mark up on top of that). It was the exact car I would have ordered, all the feratures and even my preferred color.

I went from dealer visit to see if I could like the MME to owner in 48 hours.

Try it. Your mileage may vary.
Yep! I called a bunch of dealerships and found one on the lot. I'll admit I settled on a couple things just so that I could buy it right then instead of ordering one. So glad I did!
anoop
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Joined: Tue Mar 04, 2014 12:33 am

Re: EV Credit - Timing end of year

Post by anoop »

knowledge wrote: Thu Nov 25, 2021 7:21 pm I'm doing the exact opposite, I've delayed taking delivery of the Model 3 until I see the EV credit come back for Tesla. Another two months or so won't kill me.
I would expect Tesla to bump the price up if the credit is available.
psychoslowmatic
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Re: EV Credit - Timing end of year

Post by psychoslowmatic »

anoop wrote: Fri Nov 26, 2021 4:20 pm
knowledge wrote: Thu Nov 25, 2021 7:21 pm I'm doing the exact opposite, I've delayed taking delivery of the Model 3 until I see the EV credit come back for Tesla. Another two months or so won't kill me.
I would expect Tesla to bump the price up if the credit is available.
Tesla considers your price locked when you place the order. You can only delay a certain amount of time after you order to take delivery though. 30 days when I recently looked at the order agreement.
anoop
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Joined: Tue Mar 04, 2014 12:33 am

Re: EV Credit - Timing end of year

Post by anoop »

psychoslowmatic wrote: Fri Nov 26, 2021 10:05 pm
anoop wrote: Fri Nov 26, 2021 4:20 pm
knowledge wrote: Thu Nov 25, 2021 7:21 pm I'm doing the exact opposite, I've delayed taking delivery of the Model 3 until I see the EV credit come back for Tesla. Another two months or so won't kill me.
I would expect Tesla to bump the price up if the credit is available.
Tesla considers your price locked when you place the order. You can only delay a certain amount of time after you order to take delivery though. 30 days when I recently looked at the order agreement.
Good to know.
knowledge
Posts: 486
Joined: Wed Mar 02, 2011 4:44 pm

Re: EV Credit - Timing end of year

Post by knowledge »

anoop wrote: Fri Nov 26, 2021 4:20 pm
knowledge wrote: Thu Nov 25, 2021 7:21 pm I'm doing the exact opposite, I've delayed taking delivery of the Model 3 until I see the EV credit come back for Tesla. Another two months or so won't kill me.
I would expect Tesla to bump the price up if the credit is available.
They've already bumped up the price $3k for the same configuration since I placed the order. Who knows if it's because of the possibility of this credit coming or demand, but I suspect they'll give me grief if I keep on delaying. There was an article out a few days ago stating basically as much. The way the tax credit is supposed to work, if it does pass, I imagine they'll settle on 54,990 as the price for the model 3 AWD.
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