Volkswagen ID Forum banner
1 - 20 of 28 Posts

·
Registered User
Joined
·
10 Posts
Discussion Starter · #1 ·
Trying to determine the probability that I qualify for the federal EV tax credit.
Ordered 2023 model May, 2022.
Delivery and purchase will be December, 2022. Manufactured in TN.
MAGI is over $300k.
From what I can tell, if I take delivery in 2022 then my MAGI is not a problem.
Is it a problem that the 2023 model is not on the IRS list of EVs that qualify for the federal credit?
Will it be?
Why isn’t the 2022 model on the list of vehicles that qualify for the pre IRA credit?
 

·
Registered User
Joined
·
7 Posts
I just took delivery of a 2023 ID.4 a couple of weeks ago and am in the same boat. In fact, a major motivation for buying the ID.4 was that it does qualify for the credit in 2022 without the maximum income limit. I believe that the 2022 model does not qualify becaseu it was not assembled in North America.

However, I must say that the car's software is so irritating that I'm not sure putting up with it is worth the $7500 credit.
 

·
Registered User
Joined
·
10 Posts
Discussion Starter · #3 ·
I just took delivery of a 2023 ID.4 a couple of weeks ago and am in the same boat. In fact, a major motivation for buying the ID.4 was that it does qualify for the credit in 2022 without the maximum income limit. I believe that the 2022 model does not qualify becaseu it was not assembled in North America.

However, I must say that the car's software is so irritating that I'm not sure putting up with it is worth the $7500 credit.
I thought the pre IRA requirements didn’t include manufacturing location. Am I wrong? What don’t you like about the software, and is there a car with software that you prefer?
 

·
Registered User
Joined
·
591 Posts
Trying to determine the probability that I qualify for the federal EV tax credit.
Ordered 2023 model May, 2022.
Delivery and purchase will be December, 2022. Manufactured in TN.
MAGI is over $300k.
From what I can tell, if I take delivery in 2022 then my MAGI is not a problem.
Is it a problem that the 2023 model is not on the IRS list of EVs that qualify for the federal credit?
Will it be?
Why isn’t the 2022 model on the list of vehicles that qualify for the pre IRA credit?
Because it’s not tax time yet or even time to file taxes. Both the 2022 MY purchased before August 16, 2022 and the 2023 MY purchased before January 1, 2023 are very likely to qualify for the full $7,500 tax credit without any maximum income limitation requirement. The 2022 MY purchased on August 16, 2022 or later (unless there was a binding purchase agreement signed before August 16) qualifies for ZERO tax credit. The 2023 MY purchased on January 1 or later will qualify for either $3,750 in federal tax credit or ZERO based on the IRS clarification that will be released around January 1, 2023. The maximum income limits kick in on January 1, 2023 as well, so even if the 2023 MY qualifies for $3,750 (based on the forthcoming IRS clarification), high income earners will not qualify for any federal tax credit if they purchase a 2023 MY on January 1 2023 or later.
 

·
Registered User
Joined
·
7 Posts
I thought the pre IRA requirements didn’t include manufacturing location. Am I wrong? What don’t you like about the software, and is there a car with software that you prefer?
You're correct that the pre-IRA requirements didn't include manufacturing location. But it sounded like you purchase was post-IRA. I think the law was signed in mId-August.

The ID software is completely non-intuitive and cumbersome to use. I would say that it is the worst on the market. The Hyundai Ioniq 5 is vastly easier to use with more logical software as well as dedicated buttons--both hard and soft--for the sound system and climate controls.
 

·
Registered User
Joined
·
10 Posts
Discussion Starter · #8 ·
You're correct that the pre-IRA requirements didn't include manufacturing location. But it sounded like you purchase was post-IRA. I think the law was signed in mId-August.

The ID software is completely non-intuitive and cumbersome to use. I would say that it is the worst on the market. The Hyundai Ioniq 5 is vastly easier to use with more logical software as well as dedicated buttons--both hard and soft--for the sound system and climate controls.
My purchase is post IRA. Just worrisome that the MY 2022 never made it on the list of qualifying vehicles for the “old” pre IRA rules.
 

·
Registered User
Joined
·
30 Posts
Because it’s not tax time yet or even time to file taxes. Both the 2022 MY purchased before August 16, 2022 and the 2023 MY purchased before January 1, 2023 are very likely to qualify for the full $7,500 tax credit without any maximum income limitation requirement. The 2022 MY purchased on August 16, 2022 or later (unless there was a binding purchase agreement signed before August 16) qualifies for ZERO tax credit. The 2023 MY purchased on January 1 or later will qualify for either $3,750 in federal tax credit or ZERO based on the IRS clarification that will be released around January 1, 2023. The maximum income limits kick in on January 1, 2023 as well, so even if the 2023 MY qualifies for $3,750 (based on the forthcoming IRS clarification), high income earners will not qualify for any federal tax credit if they purchase a 2023 MY on January 1 2023 or later.
Similar situation here: Due to my income, I won't qualify for any EV tax credit benefits after Jan 1, 2023. Also not sure that I want to buy my incoming MY23 right now in such a seller's market, even with the $7,500. The car's not here yet, but I'm already thinking I'm going to cancel and just wait another year. Hopefully market conditions (and ID.4 issues) improve by then.
 

·
Registered User
Joined
·
591 Posts
My purchase is post IRA. Just worrisome that the MY 2022 never made it on the list of qualifying vehicles for the “old” pre IRA rules.
You can't file taxes for 2022 yet. It will be worrisome once the filing season starts and if the 2022 is still not on the list. I am planning to choose the 2021 MY if the 2022 MY doesn't show up by the time I file my 2022 taxes.
 

·
Registered User
Joined
·
10 Posts
Discussion Starter · #11 ·
You can't file taxes for 2022 yet. It will be worrisome once the filing season starts and if the 2022 is still not on the list. I am planning to choose the 2021 MY if the 2022 MY doesn't show up by the time I file my 2022 taxes.
From what I gather neither the 21 nor the 22 would qualify going forward because they’re not manufactured in NA. I could be wrong though.
 

·
Registered User
Joined
·
7 Posts
My purchase is post IRA. Just worrisome that the MY 2022 never made it on the list of qualifying vehicles for the “old” pre IRA rules.
Ours was delivered two weeks ago and it was a 2023. I suspect your's will be similar. Based on extensive reading of the IRA, I'm convinced that the Chatanooga-built ID.4, delivered before the end of the year, qualifies for the tax credit, unaffected by the other provisions of the law that commence on 1 January. And I plan to take the credit, regardless of its appearance on any list.
 

·
Registered User
Joined
·
10 Posts
Discussion Starter · #13 ·
Similar situation here: Due to my income, I won't qualify for any EV tax credit benefits after Jan 1, 2023. Also not sure that I want to buy my incoming MY23 right now in such a seller's market, even with the $7,500. The car's not here yet, but I'm already thinking I'm going to cancel and just wait another year. Hopefully market conditions (and ID.4 issues) improve by then.
What issues have they been having?
 

·
Registered User
Joined
·
10 Posts
Discussion Starter · #14 ·
Ours was delivered two weeks ago and it was a 2023. I suspect your's will be similar. Based on extensive reading of the IRA, I'm convinced that the Chatanooga-built ID.4, delivered before the end of the year, qualifies for the tax credit, unaffected by the other provisions of the law that commence on 1 January. And I plan to take the credit, regardless of its appearance on any list.
I agree with your assessment.
 

·
Registered User
Joined
·
204 Posts
Similar situation here: Due to my income, I won't qualify for any EV tax credit benefits after Jan 1, 2023. Also not sure that I want to buy my incoming MY23 right now in such a seller's market, even with the $7,500. The car's not here yet, but I'm already thinking I'm going to cancel and just wait another year. Hopefully market conditions (and ID.4 issues) improve by then.
I am taking a similar approach. If one becomes available before 2023, I will pick it up because of the tax credit. If I can't, then I will wait until 2024 as I don't have a real need for an extra vehicle at the moment. This approach can potentially backfire, though, with inflation and continued scarcity of BEVs in general. Even with more competition, the availability of each option might still be low enough that the overall demand will continue to exceed overall supply, even if one "pools" EVs from all available manufacturers. Obviously, a decent deal might be available on the "less desirable" models at that time.

GR
 

·
Registered User
Joined
·
7 Posts
The only government tests are the ones for range and MPGe. And those are already listed on the EPA web site for all of the versions, both RWD and AWD.

But why would we expect the Treasury Dept., which is in charge of the eV rebates, and the EPA to actually talk to each other?

This is all going to get worse after the first of the year, when the assembly location of the battery and the source of its defined, rare materials is factored into the equation. This will be particularly problematic for cars that use multiple suppliers for their batteries. I hope we don't get into a situation where a particular car with one battery gets a rebate, while another, identical car, but with a different battery, gets nothing.

Nor have a seen a clear definition of the vehicle pricing cutoff. The rule says MSRP, but does that refer to base price, base price with options, base price with options and destination? Does anyone know?

Treasury only has about a month to define these rules.
 
1 - 20 of 28 Posts
Top