Sponsored

Bye, Bye 4xe tax credit for 2023 Wranglers

Lil Ronnie

Active Member
First Name
Ron
Joined
Aug 27, 2022
Threads
3
Messages
29
Reaction score
22
Location
Surprise, Az
Vehicle(s)
2006 LJ Rubicon Unlimited
Occupation
Retired LEO
Hi! I'm new to the Forum. Just been driven my 2006 Rubicon Unlimited around Arizona with nothing on my mind. Thinking it's time to get a new Rubi 4xe since I have a monster solar system in my home and can charge the ev battery basically for free. I just seems to makes sense. Order new at under invoice from one of the forums/Ratbert's dealers and also get the $7,500 tax credit. Simple right? NOT! It appears that the Government, in an effort to make things better for us surfs have just blessed us with the newly passed "750 page Inflation Reduction Act, A.K.A. IRA". This Act seems to have just screwed us on all future ev 4xe tax credits with "new rules".
It seems that to qualify for future tax credit the cars (Wranglers) have to be produced in the USA. No problem, they are built in Ohio I am told. But wait the batteries must also be made in the USA. After a bunch of searching the internet I found the batteries are currently made by a company called Stellantis who produces their Jeep ev 4xe batteries in manufacturing plants in Korea, Hungary, China, and Malaysia. But wait, they have recently entered a JV (Joint Venture) with Samsung SDI and per a recently announcement they hope to add a second plant in Hungary and ramp production capacity in Malaysia. Isn't that special? No, still more news. The JV hopes to bring EV battery manufacturing to America in 2025. Humm?
On checking with the U.S. Department of Energy they have already evaluated the IRA and announced they have determined that only the below listed cars models qualify under the new rules for future tax credits. Are you sitting down? For 2022 models 26 models, "including three 4xe models" are listed as qualifying but 8 of the 26 models have met their manufactures "sales cap". For the 2023 models only 5 now qualify with two having met its sales cap. They are BMW 330e, 2023 Bolt EV, 2023 Cadillac Lyriq, 2023 Mercedes EQS SUV, 2023 Nissan Leaf. Yep, that's it folks. No more 4xe Wrangler tax credit..
O.K. I'm done. Please, please, please tell me I am wrong and that you "KNOW" the Wrangler is still eligible for the $7,500 tax credit. I am.... disappointed to say the least. I guess I am going to have to buy a 35K Nissan Leaf, whatever the hell that is, and 4 wheel the crap out of it in the Arizona desert until the wheels fall off. I just saw an image of at the new Leaf and it is kinda sexy. NOT!
L'il Ronnie in Arizona.
Sponsored

 

Attachments

GATORB8

Well-Known Member
First Name
Matt
Joined
May 30, 2021
Threads
19
Messages
7,021
Reaction score
9,080
Location
CLT NC
Vehicle(s)
21 JLURe
Stellantis is the ownership entity that acquired FCA and therefore Jeep.

I believe the act doesn't go into effect for the 2022 tax year, so if you can make the purchase before the end of the year you may be okay. I thought there were portions applicable to the battery manufacturing location, and there was still some credit available. Income caps will prevent a large portion of us from using the credit anyways.

EDIT: Correction. FCA and PSA merged 50/50. The merged entity name is Stellantis.
 
Last edited:
OP
OP
Lil Ronnie

Lil Ronnie

Active Member
First Name
Ron
Joined
Aug 27, 2022
Threads
3
Messages
29
Reaction score
22
Location
Surprise, Az
Vehicle(s)
2006 LJ Rubicon Unlimited
Occupation
Retired LEO
Stellantis is the ownership entity that acquired FCA and therefore Jeep.

I believe the act doesn't go into effect for the 2022 tax year, so if you can make the purchase before the end of the year you may be okay. I thought there were portions applicable to the battery manufacturing location, and there was still some credit available. Income caps will prevent a large portion of us from using the credit anyways.
Thanks Gator,
Maybe there is hope yet for 2022 for the 2023 Wrangler orders. Anybody know for sure?
 

GATORB8

Well-Known Member
First Name
Matt
Joined
May 30, 2021
Threads
19
Messages
7,021
Reaction score
9,080
Location
CLT NC
Vehicle(s)
21 JLURe
Thanks Gator,
Maybe there is hope yet for 2022 for the 2023 Wrangler orders. Anybody know for sure?
Supply chain is so hard to pinpoint. I'd think it'd be close if you ordered now.
 

Sponsored

wdbrjr

Active Member
First Name
Bill
Joined
May 24, 2022
Threads
0
Messages
35
Reaction score
68
Location
West Chester, PA
Vehicle(s)
2023 Jeep Wrangler Sahara 4xe
CPA here ...

I have already had quite a few questions on this topic. The rules are fairly complex, but I can keep it fairly simple here.

Before 8/16/22 - Old rules apply
Between 8/16 and 12/31/22 - Old rules still apply with one exception. The final assembly requirement became effective on 8/16. (Wrangler 4xe meets this requirement)
After 12/31 - new rules in effect. IRS guidance will be issued prior to that.

If you feel like reading more:
https://www.irs.gov/businesses/plug-in-electric-vehicle-credit-irc-30-and-irc-30d
 

wdbrjr

Active Member
First Name
Bill
Joined
May 24, 2022
Threads
0
Messages
35
Reaction score
68
Location
West Chester, PA
Vehicle(s)
2023 Jeep Wrangler Sahara 4xe
And yes, the 2023 4xe will qualify for the final assembly requirement. I put my VIN in and it was cleared. So you have until 12/31 to purchase or enter into a valid purchase agreement. After that, who knows.
 

GATORB8

Well-Known Member
First Name
Matt
Joined
May 30, 2021
Threads
19
Messages
7,021
Reaction score
9,080
Location
CLT NC
Vehicle(s)
21 JLURe
CPA here ...

I have already had quite a few questions on this topic. The rules are fairly complex, but I can keep it fairly simple here.

Before 8/16/22 - Old rules apply
Between 8/16 and 12/31/22 - Old rules still apply with one exception. The final assembly requirement became effective on 8/16. (Wrangler 4xe meets this requirement)
After 12/31 - new rules in effect. IRS guidance will be issued prior to that.

If you feel like reading more:
https://www.irs.gov/businesses/plug-in-electric-vehicle-credit-irc-30-and-irc-30d
Awesome info.

Just curious, do you know if the lease pass through will still work in 23 for those over the income cap?
 

AFD

Well-Known Member
Joined
Oct 13, 2021
Threads
14
Messages
3,155
Reaction score
5,697
Location
Northeastern US
Vehicle(s)
2023 JL Rubicon (2DR/V6)
If Jeep can't be assed to build their 3.6L engines in the perfectly functional Pentastar factory in OH (instead making them in Mexico), they certainly aren't going to bother sourcing US-made batteries.

And not that their website is all that up-to-date, but Jeep.com is still advertising the $7,500 tax credit for the 4xe on their front page, so you're probably still good for now.

https://www.jeep.com/4xe/incentives/hybrid-incentives.html
 

Slate

Well-Known Member
Joined
Jun 24, 2022
Threads
7
Messages
279
Reaction score
252
Location
Kentucky
Vehicle(s)
'97 Wrangler Sport, '23 Rubi 4XE
Not a fan of one of the provision that says the credit will be applied at the point of sale, instead of a tax rebate when you file your personal income taxes. I understand that this streamlines things, but you would have to be pretty naive to not think that the dealers will somehow work to get their hands on this, or do some kind of trickeration. I would prefer the dealer have nothing to do with this tax credit.
 

Sponsored

wdbrjr

Active Member
First Name
Bill
Joined
May 24, 2022
Threads
0
Messages
35
Reaction score
68
Location
West Chester, PA
Vehicle(s)
2023 Jeep Wrangler Sahara 4xe
Currently, there is no guidance on this subject. I expect that to be part of the IRS guidance. There are some cool aspects to the law. The IRS will send dealers advance payments of the $7500, which you can then elect to have applied as a down payment. Obviously, there are A LOT of details to be worked out.
 

wdbrjr

Active Member
First Name
Bill
Joined
May 24, 2022
Threads
0
Messages
35
Reaction score
68
Location
West Chester, PA
Vehicle(s)
2023 Jeep Wrangler Sahara 4xe
Not a fan of one of the provision that says the credit will be applied at the point of sale, instead of a tax rebate when you file your personal income taxes. I understand that this streamlines things, but you would have to be pretty naive to not think that the dealers will somehow work to get their hands on this, or do some kind of trickeration. I would prefer the dealer have nothing to do with this tax credit.
I can see your point here. Dealers may be less inclined to make deals knowing you have $7,500 cash available to play with.
 

rcadden

Well-Known Member
First Name
Ricky
Joined
May 4, 2021
Threads
85
Messages
2,646
Reaction score
5,581
Location
Fort Worth, TX
Vehicle(s)
2021 Hydro Blue Sahara Altitude
Build Thread
Link
Occupation
Marketing
Clubs
 
Not a fan of one of the provision that says the credit will be applied at the point of sale, instead of a tax rebate when you file your personal income taxes. I understand that this streamlines things, but you would have to be pretty naive to not think that the dealers will somehow work to get their hands on this, or do some kind of trickeration. I would prefer the dealer have nothing to do with this tax credit.
Luckily within the Jeep community, there are dealers who are pretty transparent and trustworthy (based on forum members experience, not just marketing/PR) and there are dealers who will do this sort of nonsense.

Only buy from the former.
 
OP
OP
Lil Ronnie

Lil Ronnie

Active Member
First Name
Ron
Joined
Aug 27, 2022
Threads
3
Messages
29
Reaction score
22
Location
Surprise, Az
Vehicle(s)
2006 LJ Rubicon Unlimited
Occupation
Retired LEO
And yes, the 2023 4xe will qualify for the final assembly requirement. I put my VIN in and it was cleared. So you have until 12/31 to purchase or enter into a valid purchase agreement. After that, who knows.
Thank you sir. I think you nailed it. I reviewed the "ACT" and a lawyer review of the act regarding PHEV and we all come to the same conclusion. Just trying to figure our who to use for under invoice pricing. No one in Arizona is playing. Thx again.
 

Slate

Well-Known Member
Joined
Jun 24, 2022
Threads
7
Messages
279
Reaction score
252
Location
Kentucky
Vehicle(s)
'97 Wrangler Sport, '23 Rubi 4XE
I can see your point here. Dealers may be less inclined to make deals knowing you have $7,500 cash available to play with.
Exactly, prepare to see a lot of "Now $7,500 off!" - and that's it. Reminds of when I used to travel for official business - every hotel would magically charge the government rate and then magically would increase the day after the new rates were official. I get why they do that, but I see something similar, the dealers will offer this "discount" without having any skin in the game. Or they will just mark up the vehicles by that magical $7500 amount, knowing it comes off the top anyway. I would prefer to shop around for my business and get the best deal possible and THEN take advantage of the rebate.

That being said the income level cap is also pretty stupid - I mean these are expensive ass vehicles, I don't know many people making $65K going out and buying $75K vehicles. Smells like some stupid regressive tax scheme thing that real-live humans would never come up with.

They should have just waived the vehicle production cap, and raised the credit to account for normal inflation, etc.
Sponsored

 
 



Top