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2022 ID.4 Pro S AWD
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Discussion Starter · #1 ·
So, I'm one of the reservde not locked ones that need to re-do my configuration for MY23 trims.

Did I not read somewhere that the (current) maximum cost to be eligible for the $7500 MUST be under $50,000?

So our current reservation is just shy of $50,000. But the similar MY23 trim pushes the price over that magic #.

Don't I need to keep my total under 50k to quality?

Hope I'm wrong!
 

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2021 ID.4 Pro S/Gradient RWD, Kings Red
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So, I'm one of the reservde not locked ones that need to re-do my configuration for MY23 trims.

Did I not read somewhere that the (current) maximum cost to be eligible for the $7500 MUST be under $50,000?

So our current reservation is just shy of $50,000. But the similar MY23 trim pushes the price over that magic #.

Don't I need to keep my total under 50k to quality?

Hope I'm wrong!
There is no current maximum cost. The Manchin-Schumer bill (which may or may not pass) has a proposed MSRP cap of $55,000 for cars and $80,000 for trucks and SUVs; the ID.4 is expected to be classified as an SUV (but it's kind of moot on most trim levels).
 

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So, I'm one of the reservde not locked ones that need to re-do my configuration for MY23 trims.

Did I not read somewhere that the (current) maximum cost to be eligible for the $7500 MUST be under $50,000?

So our current reservation is just shy of $50,000. But the similar MY23 trim pushes the price over that magic #.

Don't I need to keep my total under 50k to quality?

Hope I'm wrong!
No, SUVs can have a purchase price of $80,000, however the ID.4 still might not qualify. Depends on where the battery is sourced at.
 

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The battery is sourced in the US, state of Georgia. Not sure about the mineral content in the battery. So at least half of the $7,500 and maybe all of it.
 

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2022 ID.4 Pro S AWD
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Discussion Starter · #5 ·
Ok. I’ve got it now. The Oregon $2500 tax credit caps the vehicle cost at $50k. Ouch. Same trim in a MY23 costs us another $2500. I understand the price increases and am not surprised. Now just need to decide if we want the trim bad enough to spend an effective +$2500!
 

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Ok. I’ve got it now. The Oregon $2500 tax credit caps the vehicle cost at $50k. Ouch. Same trim in a MY23 costs us another $2500. I understand the price increases and am not surprised. Now just need to decide if we want the trim bad enough to spend an effective +$2500!
is the Oregon tax credit based on MSRP or the selling price, as if you have something to trade in reducing the selling price to less than some magic number?
 

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Ok. I’ve got it now. The Oregon $2500 tax credit caps the vehicle cost at $50k. Ouch. Same trim in a MY23 costs us another $2500. I understand the price increases and am not surprised. Now just need to decide if we want the trim bad enough to spend an effective +$2500!
Same here in Massachusetts, so I'm switching my reservation from Pro S to Pro. I don't want the 20" wheels and the panoramic glass roof won't be missed.
 
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Same here in Massachusetts, so I'm switching my reservation from Pro S to Pro. I don't want the 20" wheels and the panoramic glass roof won't be missed.
Just FYI the MA legislature passed its own climate bill and it’s awaiting the governor’s approval right now (H.5060). It raises the MSRP max to $55k. Also raises the rebate to at least $3500 and makes it point of sale. There are no dates listed on implementation.
 

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Ok. I’ve got it now. The Oregon $2500 tax credit caps the vehicle cost at $50k. Ouch. Same trim in a MY23 costs us another $2500. I understand the price increases and am not surprised. Now just need to decide if we want the trim bad enough to spend an effective +$2500!
My read of the Oregon rebate is that the BASE model needs to be less than $50k, which it is. I've also spoken to a friend that purchased a Tesla in Oregon with an MSRP over 50k and he still qualified as the base model was less than 50k.
 

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You only get the $7,500 federal tax credit if you owe taxes every year not if you get a federal refund every year on a purchase not a lease. I talked with an accountant the other day on this matter.
 

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Just FYI the MA legislature passed its own climate bill and it’s awaiting the governor’s approval right now (H.5060). It raises the MSRP max to $55k. Also raises the rebate to at least $3500 and makes it point of sale. There are no dates listed on implementation.
Thank you for that update, I had no idea! I can justify the Pro S trim with the MA rebate, especially if they increase it to $3,500. I'll keep tabs on the status of that bill.
 

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Thank you for that update, I had no idea! I can justify the Pro S trim with the MA rebate, especially if they increase it to $3,500. I'll keep tabs on the status of that bill.
This legislation has played ping pong for a while. After being passed by the MA legislature and being sent to the governor, it was sent back to the legislature by the governor’s office with comments and proposed changes, then revised by the legislature, and then sent back to the governor for either signature or veto. We should know the status in the next few days/weeks and whether the updated EV rebates made it through.
 

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You only get the $7,500 federal tax credit if you owe taxes every year not if you get a federal refund every year on a purchase not a lease. I talked with an accountant the other day on this matter.
I don't believe this is entirely true. If purchasing, whether or not you owe taxes or get a refund when you file is irrelevant. What matters is your tax liability (line 24 from your 1040 form). If this is $7,500 or more, you would qualify for $7,500, regardless of whether you are owed a refund or not. If it is anything less than $7,500, you would get whatever it is.
 

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My read of the Oregon rebate is that the BASE model needs to be less than $50k, which it is. I've also spoken to a friend that purchased a Tesla in Oregon with an MSRP over 50k and he still qualified as the base model was less than 50k.
That's right, it applies to "electric vehicles with a base MSRP under $50,000"
 

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You only get the $7,500 federal tax credit if you owe taxes every year not if you get a federal refund every year on a purchase not a lease. I talked with an accountant the other day on this matter.
You need to talk to another accountant. The refund has nothing to do with this. You get a refund because you have paid too much tax in your payroll withholding, which is something you can adjust with a W4.
 

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You need to talk to another accountant. The refund has nothing to do with this. You get a refund because you have paid too much tax in your payroll withholding, which is something you can adjust with a W4.
I guess I do need to talk with another accountant. So I will get the credit even if I never owe federal taxes and get a refund every year. Thank you for the info.
 

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I guess I do need to talk with another accountant. So I will get the credit even if I never owe federal taxes and get a refund every year. Thank you for the info.
You will get the full credit under the "old" rules through January 1, 2023 provided you pay, through withholding, estimated taxes, etc, at least $7500 in taxes.

Dave
 

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I guess I do need to talk with another accountant. So I will get the credit even if I never owe federal taxes and get a refund every year. Thank you for the info.
You get a refund because you overpay tax during the year not because you have no federal tax liability (aka owe federal tax).

The word “refund” implies that you first paid the money to the IRS; in fact, you paid too much, so they refund you the amount you overpaid. If you never paid it, it’s not a refund.
 

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Look at it this way. If you review your tax return form and taxes owed are $5k and you paid $6k you get a refund of $1k. In this case the EV tax credit would be $5k and you would get a refund of $6k. If you want to get the FULL $7500 tax credit your taxable income (AGI) will need to be boosted so that your taxes owed are also boosted to a minimum of $7500.
 
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