No more waiting for EV tax credits for US.

Apparently none of the new regulations apply when the vehicle is leased. This would include income caps, MSRP limits and country of origin requirements for components and batteries.

If that is the case, a vehicle that would qualify for a $3750 credit if sold, would qualify for a $7500 credit if leased. And a vehicle that would not qualify at all, if sold, due to an excessive MSRP for example, would qualify for a $7500 credit if leased.

Seems odd, but this is our government at work.

 

He seems to have a different take on the 2024 tax credit than everyone else.




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Not sure if his take is different “than everyone else”, but I am pretty sure that he didn’t mention anything about leased vehicles.

 

“Everyone else” is referring to every article and the Treasury Dept amended articles from Friday. I’ve read concerning the tax liability.
He states you’ll still need tax liability to claim while others are saying not.
He did put out another video talking about a loophole that the buyer will be able to transfer back to a qualified dealer this giving it back to buyer for a rebate.
The dealer will then apply for the tax credit.


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If I recall, he stated repeatedly that anyone could “claim” the credit, however they would need a tax burden/liability to “keep” it. See how easy it is for something to get misinterpreted?

The “loophole” is likely the one for leased vehicles. There is no transferring, as you’ve described, for such a transaction. Leased vehicles are considered commercial vehicles. The dealer receives the credit, pure and simple. The lessee is exempt from income limits and the vehicle is exempt from battery, critical mineral and country of assembly requirements. They may also be exempt from MSRP limits, although I am not 100% certain on that.

 

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Thank goodness he said that no one is wrong.

 

Interesting video. I wonder if this also means that you can transfer the tax credit to the dealer and your income is above the cap limits that the IRS will not pursue recapture.

 

This is from the IRS website. The bearded internet wonder may tie himself in a knot trying to figure out what it means. Keep in mind that he isn’t a CPA or an attorney, but he’s talked to a CPA and he’s read the document many times.

 

I'll answer my own question. From what I read, the IRS would pursue recapture if you don't meet the gross income cap limits. You have to be under the limit for your filing of either the prior year or the current year.

 

Yes. Income limits (limitations) were mentioned in the first post as a requirement for the credit at the time of sale. That post succinctly covered the key points of the program. First, the credit can be taken at point of sale. Second, to do so, both the buyer and vehicle must meet certain requirements.

The videos say the same things while emphasizing the subject of recapture. It should be apparent to all but the willfully ignorant, that attempting to claim something for which one does not qualify would qualify one for a pants down spanking at some point after the buyers tax returns are reviewed.

 

As the program was designed there were effectively income limits on both the low end (taxable income had to be enough to cover the credits) and the high end (hard set adjusted gross income limits depending on filing status). The lack of pursuit of recapture appears to have removed the low limit, but did nothing for the upper limit.

 

Yes. While not exactly an income limit on the low end, the requirement of having a tax liability equal to or greater than the tax credit has been eliminated.

 

I do wonder how soon dealerships will sign up for this program with the IRS.
I ones that do qualify may hesitate to see how soon the government will reimburse the credit back to them knowing how much of a snails pace the government moves.
Also what will keep dealerships from adding on ridiculous mark ups to make even more money.
It will be interesting to see how all of this plays out.


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Dealers have been filing for the tax credit on leased vehicles for some time. We leased a Jeep Grand Cherokee 4xe just over a year ago, and the dealer took $7500 off the MSRP. When and how they were paid for the tax credit is of no concern to me.

I don’t see how they’re making money by “discounting” a vehicle by $7500 and then receiving a $7500 tax credit. Seems like a wash. It may allow them to sell more vehicles at MSRP, since the buyer is essentially getting a discount of up to $7500, and there is some meat on the bone at MSRP. If the car is marked up from MSRP then they could be accused of trying to take advantage of a program that was intended to incentivize buyers.

 

Have you been to a dealership over the last few years?
Mark ups are everywhere!
MSRP doesn’t mean it is set in stone. The dealership can add whatever they want in markups. It’s the customer’s job to say the hell with you and walk away.


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Perhaps it wasn’t clear when I said we leased a car just over a year ago. It was a new car, at a dealership. So yes, I’ve been to a dealership in the past few years.

The price was MSRP and they weren’t moving off that price. We ordered the car and waited 3-4 months for it to arrive. They knew we wanted the car, so we didn’t have the edge that a walk in customer might have.

Personally, I wouldn’t pay over MSRP for a new car, but MSRP seems to be the new normal. Buying or leasing a new car isn’t for everyone. For those who choose to acquire a new vehicle, it’s nice to have a $7500 discount on the table.

 

Haha.
MSRP the new normal…..add on another $5k or $10k and you got your normal


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We’re a bit off the rails on the topic of EV tax credits, but, in what market and on which models are you seeing mark ups of $5K-$10K over MSRP?