Bye, Bye 4xe tax credit for 2023 Wranglers

wdbrjr

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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.
Well in fairness to the income cap, I have been hearing a lot of complaining from conservative taxpayers that this credit was just another giveaway to rich people. In this case, democrat rich people because the conservatives probably wouldn't buy one anyway. We can certainly argue the merits of such policy, but the discussion should no longer be about reckless spending on climate or giveaways to the rich. Personally, I like having both electric and gas motor. I'm not yet prepared to completely eliminate my dependence on gas (mainly for long trips).

 

wdbrjr

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Well in fairness to the income cap, I have been hearing a lot of complaining from conservative taxpayers that this credit was just another giveaway to rich people. In this case, democrat rich people because the conservatives probably wouldn't buy one anyway. We can certainly argue the merits of such policy, but the discussion should no longer be about reckless spending on climate or giveaways to the rich. Personally, I like having both electric and gas motor. I'm not yet prepared to completely eliminate my dependence on gas (mainly for long trips).
Not trying to say the government doesn't recklessly spend. I don't think any of us could accuse them of being frugal. 😅
 

_oIIIIIIIo_

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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.
President Biden has the authority under this law to waive certain provisions for set periods of time. When asked about that, he has stated that he is planning to waive the provisions related to manufacturing the batteries in the US for up to 3 years to allow manufacturers to move operations to the US. He has stated he plans to sign the waivers by the end of the year.

Once he does that, all current vehicles eligible for the credit will remain eligible for at least 3 more years.
 
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Lil Ronnie

Lil Ronnie

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President Biden has the authority under this law to waive certain provisions for set periods of time. When asked about that, he has stated that he is planning to waive the provisions related to manufacturing the batteries in the US for up to 3 years to allow manufacturers to move operations to the US. He has stated he plans to sign the waivers by the end of the year.

Once he does that, all current vehicles eligible for the credit will remain eligible for at least 3 more years.
Thx for the info Brent. That would be great. But it is small stuff for him. Hope he doesn't forget.
 

stojanowski

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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.
Isn't the income limit 300k joint filing for a new jeep?
 


Windshieldfarmer

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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.
The Act was effective immediately…the day it was signed. The $7,500 is gone unless you had a signed purchase contract for the 4xe prior to the date the IRA was signed.
 
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ras815

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The Act was effective immediately…the day it was signed. The $7,500 is gone unless you had a signed purchase contract for the 4xe prior to the date the IRA was signed.
I've read conflicting reports on this - some sources say that vehicles valid under the old credit that are ordered and delivered before Dec 31, 2022 will be eligible under the old rules.
 

TJJL19

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Hi! 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
You forgot to mention the 87,000(thousands) IRS agents, that the bill pays for, to make sure you follow every dot of the Law.
Just buy a 392 and show then how pissed you are.
 

Kyanche

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President Biden has the authority under this law to waive certain provisions for set periods of time. When asked about that, he has stated that he is planning to waive the provisions related to manufacturing the batteries in the US for up to 3 years to allow manufacturers to move operations to the US. He has stated he plans to sign the waivers by the end of the year.
Isn't that great? To motivate more manufacturers to build their shit in the US?

I don't get why anyone would hate on that.

Just like I don't get why anyone would hate on CA trying to incentivize fixing the grid lmao.

Makes me think people would rather drive american branded cars made in china and live in a crappy town with broken electricity.
 


wdbrjr

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The Act was effective immediately…the day it was signed. The $7,500 is gone unless you had a signed purchase contract for the 4xe prior to the date the IRA was signed.
If your talking about a Wrangler, that statement is wrong. I do this research for a living.
 

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