Volkswagen ID Forum banner

Federal Tax Credit for Leases

6K views 16 replies 8 participants last post by  ExCivilian 
#1 ·
Hey All,

Long time reader, first time poster. Hoping to get some clarification on the 7500 federal tax credit, especially with some here receiving their FEs.

I plan to lease my pro once it arrives and have been doing some research based on what people here have talked about. How does the federal tax credit work in this case with the lease? Is it taken off of the top? Trying to figure out how they would incorporate that. I searched the forum and there were a few posts from 5-6 months ago, but curious with those that went through the leasing process already.

Thank you! Hope to contribute more in the future!
 
#2 ·
The lessor (VW) gets the $7500 credit and may choose to pass some or all of that through to you as part of the lease. It appears VW is passing it all through (verify as you're doing paperwork).

Other posters have been putting it in the appropriate "incentives" field on this calculator, where you could see its impact to you. It seems like it's essentially off the top, and has a big impact on my calculated payment.
 
#4 ·
Thank you! That is what I thought, but I was noticing a few people posting their numbers in the other threads. Was looking to follow along there but didn't know if the credit was applied or not (I do know the overall price was higher since it is the FEs that were being bought)
 
#7 ·
The FTC is applied as a cap cost reduction when you lease an ID4. So if the MSRP for your ID4 is $39,995, then the cost of the vehicle after the reduction is $32,495.
The lease is then calculated from there. This is one reason why I prefer to lease EVs at this point in time.
Not every auto manufacturer is doing this though. Ford for example, keeps the entire tax credit (when you lease a Mach-E), and they don't pass any of that incentive on to their customers.
When I leased my Volt in 2018, GM gave me roughly $6K of the $7,500 FTC as a cap cost reduction. This of course was when they still had access to the FTC.
 
#13 ·
Hello, I just took an FE home with a lease in the San Francisco Bay Area yesterday. The $7500 fed credit and the $1500 clean fuel rebate are put under the rebate and non cash section. The $500 deposit is under amount to be paid in cash. They add up to $9500. The taxes, fees, registration, etc. and first month payment are deducted from $9500. That amount is then being deducted from msrp to get your adjusted capitalization cost, this is the price they used to calculate your payments. By the way the MF for me was 00143.
 
#14 ·
Thanks everyone. This helps a ton. I have to see what happens with me regarding NJ's temporary suspended rebate. Hoping VW will either deliver or hold it until after 7/1.


While I am getting "just" the pro version I am very excited to give it a test drive when it comes in (I know I can do the FE but I always like testing what I plan to buy). I will make sure to give my details once I (hopefully) decide to pull the trigger.
 
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top