[WBF25]

My 2022 arrived last week. I was surprised to see that as of this moment the 2022 VW ID.4 is not on the official list of cars meeting the CURRENT criteria. The 2021 model did. Does anyone have info on this situation? VW needs to send the IRS some paperwork is my guess

There has been some discussion in this thread and the consensus is that it's a clerical thing. VW is still taking $7,500 off for leases of '22s, and there is no reason the '22s sold so far wouldn't qualify for it under the law currently in effect.

Federal tax credit for 2022 models - missing?

Took delivery of my 2022 ID4 AWD Pro S a couple weeks ago! Car is really great and excited to finally have it after a year. I was just double checking details on the federal tax credit recently and saw that the 2022 model is not listed on the DoE page here (Federal Tax Credits for All-Electric...

www.vwidtalk.com

 

[wildpitcher]

If that’s true…if the bill passes by end of august… then no EV vehicles purchased between sept 2022-Dec 2022 are eligible for the EV credit? (Since the old credit expires and I don’t think any EV vehicle is currently manufactured in the US with 100% US made battery and parts? Or the only vehicle with a chance would be the 2023 VW ID.4?

No, I don't think this is the correct interpretation for 2022s. I believe the old rules will be in effect for all cars sold until the end of the year. A transition period will cover those 2022 models ordered in 2022 and delivered in 2023

I think the 2023 ID.4 probably will get half a credit? I doubt anyone will qualify for the battery minerals part of the new credit rules.

Dave

 

[Jimokid4]

There has been some discussion in this thread and the consensus is that it's a clerical thing. VW is still taking $7,500 off for leases of '22s, and there is no reason the '22s sold so far wouldn't qualify for it under the law currently in effect.

Federal tax credit for 2022 models - missing?

Took delivery of my 2022 ID4 AWD Pro S a couple weeks ago! Car is really great and excited to finally have it after a year. I was just double checking details on the federal tax credit recently and saw that the 2022 model is not listed on the DoE page here (Federal Tax Credits for All-Electric...

www.vwidtalk.com

Thx When I got a lease quote the upfront $7,500 was tempting. Can alway lease then pay off getting the rebate instantly even if you personally do not have a $7500 federal tax liability. It is a good sign that VW knows they can get the 2022 on the list. The lease quote was awful with pathetic residual and a MF that was silly.
I am happy the IRS will be able to hire thousands of new officers via the inflation production act

 

[WBF25]

Thx When I got a lease quote the upfront $7,500 was tempting. Can alway lease then pay off getting the rebate instantly even if you personally do not have a $7500 federal tax liability. It is a good sign that VW knows they can get the 2022 on the list. The lease quote was awful with pathetic residual and a MF that was silly.
I am happy the IRS will be able to hire thousands of new officers via the inflation production act

Yeah, getting it upfront certainly makes the lease then buyout option tempting. Glad VW is giving people the credit in the lease, I know some others weren’t (Kia and Hyundai, maybe Ford?)

 

[SunWizard]

Ford won't let you buyout the lease, even at the end! (they used to allow a buyout only at the end.)

Ford Won't Let You Buy Your Leased EV When the Contract Ends

Effective June 15, Ford removed the buyout option for customers leasing EVs such as the Mustang Mach-E and F-150 Lightning. The change is part of Ford's plan to keep batteries in the Ford network.

www.caranddriver.com

 

[fireboy92k]

Which is funny, because their 'leases' aren't leases. They are balloon contracts.

Ford won't let you buyout the lease, even at the end! (they used to allow a buyout only at the end.)

Ford Won't Let You Buy Your Leased EV When the Contract Ends

Effective June 15, Ford removed the buyout option for customers leasing EVs such as the Mustang Mach-E and F-150 Lightning. The change is part of Ford's plan to keep batteries in the Ford network.

www.caranddriver.com

 

[Nocedit]

=

My 2022 arrived last week. I was surprised to see that as of this moment the 2022 VW ID.4 is not on the official list of cars meeting the CURRENT criteria. The 2021 model did. Does anyone have info on this situation? VW needs to send the IRS some paperwork is my guess

Just curious.. .when did you lock? and how long after step 4 in the process did it take for delivery? I'm locked on 4/13 and still stuck on STEP 3 (locked) stage nearly 4 months later.

 

[clancy.priest]

Interesting article...

Washington bureaucracy could rescue Democrats from their EV tax credit problem

The Democrats have crafted an electric vehicle tax credit not a single car on the market would qualify for. But Washington has always known how to break its own rules.

www.politico.com

 

[the ob]

Interesting article...

Washington bureaucracy could rescue Democrats from their EV tax credit problem

The Democrats have crafted an electric vehicle tax credit not a single car on the market would qualify for. But Washington has always known how to break its own rules.

www.politico.com

this article gives me hope we can still get the credit even after the fact….

 

[billh96007]

utter nonsense

Indeed, but not surprising.

 

[Mrcleop]

this article gives me hope we can still get the credit even after the fact….

This was shared in the Ioniq forum as well. I think they’ll find some workarounds for the mineral sourcing component if truly no one qualifies. But there are already cars and batteries assembled in North America, so I doubt they’ll add workarounds there.

 

[rbdavis808]

this article gives me hope we can still get the credit even after the fact….

I would hope that no one whose finances are critically dependent on the credit makes this leap of faith. I expect that such lucky exceptions are granted to manufacturers far more often than to consumers, although there's certainly some congruence of interests here.

 

[wildpitcher]

I would hope that no one whose finances are critically dependent on the credit makes this leap of faith. I expect that such lucky exceptions are granted to manufacturers far more often than to consumers, although there's certainly some congruence of interests here.

Agreed. I think it is prudent to assume no Federal Tax credit is available and be surprised if some turns up.

Dave

 

[Saul7110]

If what I interpreted is true, at this point I'm leaning to keeping the 2022. I'm not sure many EVs are going to qualify for the full $7500 under the new rules.

Dave

So if for some miracle I receive my MY2023 in 2022 it should apply the 7500? Right?

 

[Mrcleop]

So if for some miracle I receive my MY2023 in 2022 it should apply the 7500? Right?

That’s a maybe. The battery components and mineral sourcing becomes effective when the Transportation or Treasury secretary issues guidance. They have until Dec 31, 2022 to issue it. But if it’s earlier, then the ID.4 might only qualify for $3750 or $0.

Even though the bill says it starts in 2023, that really only applies to the MSRP & income limits as well as the removal of the 200k cap.

 

[LHNinME]

Agreed. I think it is prudent to assume no Federal Tax credit is available and be surprised if some turns up.

Dave

Or consider it a gift if it shows up. I have never calculated the whole tax credit thing into my car buying scenario. It's not like they had you a check when you buy the car (or give you a reduction on the price, note I am talking about buying not leasing). It's more like a wonderful surprise when April 15th arrives and you owe less money than you thought you did. That's the way taxes work in our household, unfortunately.

 

[wildpitcher]

So if for some miracle I receive my MY2023 in 2022 it should apply the 7500? Right?

Probably maybe it might? The battery component language had a variable start time that depended on "guidance from the Secretary". As soon as the guidance is in place, the new battery rules are in place. The deadline for the Secretary to publish the guidance is 1/1/2023.

So, the battery component rules go into effect once The Secretary provides guidance - any vehicles that go into service after that must pass those requirements. The date of the guidance is not yet known, but the deadline to have it is 1/1/2023.

Dave

 

[NiceMann]

Or consider it a gift if it shows up. I have never calculated the whole tax credit thing into my car buying scenario. It's not like they had you a check when you buy the car (or give you a reduction on the price, note I am talking about buying not leasing). It's more like a wonderful surprise when April 15th arrives and you owe less money than you thought you did. That's the way taxes work in our household, unfortunately.

I factor into the price of the vehicle. If I don't get the $7,500 for my MY23 I probably will not buy it. May look at another electric vehicle if I decide not to keep my 2021 ID.4.

 

[wildpitcher]

I factor into the price of the vehicle. If I don't get the $7,500 for my MY23 I probably will not buy it. May look at another electric vehicle if I decide not to keep my 2021 ID.4.

It is almost a lock that you won't get the full $7500 for the MY23. You might get $3750. Maybe.

Or if you can buy it this year, you might slip in under the old rules. Maybe.

Dave

 

[fireboy92k]

We are debating this in another thread. The legislation, as currently written, seems to say that you will only get the existing $7,500 credit for a car delivered and placed in service after January 1, 2023 if you have a binding sales contract. That probably means something to a lawyer, but I don't know if an order that isn't yet an actual bill of sale is the same thing.... I'm guessing not. Someone that IS a lawyer would have to say if there is a way for a dealer to sign a bill of sale with you prior to them having the car to sell. And how that would work with a bank as well, I'm not sure since there is no asset to collateralize the loan.

As for the new rules, they pretty much get what Joe Manchin wanted, which is an elimination of the vehicle credit entirely unless the cars and batteries are largely sourced and assembled in North America or in countries we have free trade agreements with (whatever that small list is, that doesn't include China I'm sure).