Bye, Bye 4xe tax credit for 2023 Wranglers

[Lil Ronnie]

Yes, shorter urban trips and regular recharging. I stopped tracking fuel use well over a month ago because it remained consistent. Charging daily, running ~65 miles per day (when I drive it) the elec/gas mix yields fuel costs comparable to having a vehicle that yields a ~27mpg overall average. This is a significant $1300+ per year fuel savings with the current "lower" $4/gal gas....that's almost enough for a new set of tires.

What would skew this downward is if gas costs drop to $2/gal or I did longer drives where electric is a smaller percentage; doing a couple long highway trips my 4xe Rubi yielded 20.5mpg and 24mpg due to weather...still not bad at all for a 5000+lb brick on all terrain tires.

You had me at “A new set of tires.” I like the way you think. My bride, and most women can’t see or understand this coronation between gas/electric mpg, money, new cool stuff for the Jeep. Well said my brother in Jeep. Well said

Agreed - I can’t actually think of a single hybrid that gets 100+ miles on electric

Just found this - none do - the average one gets just under 28 miles of range

https://evadoption.com/ev-models/available-phevs/

THX WINGS,
The link on evadoption is awesome. Thank you. 28MPR is so eye opening. Great article

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[Lil Ronnie]

A "real hybrid"? Please define.

What makes a hybrid a hybrid is not it's gas mileage. A hybrid electric vehicle is one that gets it's power from a combination of electric motors fed by battery and an ICE. In some hybrids the soul pupose of the ICE is to generate power to charge the battery. In most hybrids the car can be powered by the ICE and battery separately or both simultaneously depending on how/where it's being driven.

While the hybrid power implementation of the 4xe is very different from most hybrids, it is a true hybrid in every sense of the word. It can run on full electric power for about 21 or so miles. It can run just the ICE when the battery is dead. It can run in a true hybrid mode where used of the ICE is controlled by a computer; it turns on when more power is needed or when the battery is running out of power.

Because the Wranger is intended to be an off road vehicle, where sometimes more power is needed Jeep's hybrid implementation allows the electric motor to provide extra torque when in situations where it is needed, hense the marketing mumbo jumbo you are referring to.

Your wish for a "real hybrid" Wrangler with "real fuel efficiency" while doing everything that a Wrangler is capable of is a bit of a pipe dream right now. Like most other "real hybrids" the Wragler 4xe offers great fuel mileage for those with short commutes. Because of the size and weight of a Wragler a large heavy battery is needed just to go those 21 or 22 miles in full electectric mode. But when the ICE is needed it is also tasked with moving that same large, heavy, brick so it isn't going to get as good a mileage as a Prius when the battery runs out. Large, heavy, brick vs small, less heavy, aerodynamic car. Which one do you think is going to get better mileage? Expecting compareable mileage between the two is unrealistic. You cannot change the laws of physics.

AVgeek99
Thx for jumping in. Well said. And it’s the best looking, most versatile, big fat brick on the road.

 

[AVGeek99]

AVgeek99
Thx for jumping in. Well said. And it’s the best looking, most versatile, big fat brick on the road.

Wouldn't trade it for the world.

 

[yortigoza40]

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.

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.

Nothing to worry about. I just checked the IRS website and the list of vehicles that qualify for the Credit and the Jeep Wrangler 2023 4xe is on the list. See picture.

 

[Lil Ronnie]

Well that’s good news. That list appears to be from the Dept. of Energy site. But that is very reassuring that the 2 2023 Jeep 4xe’s will carry over into 2023 for the tax credit. But… Knowing the government, I will believe it when I see it.

 

[BXFXJeep]

The Wrangler e versions aren’t really a true hybrid in terms of fuel savings. The electric motor provides extra torque when off road. I’m surprised it qualifies for a tax credit all. It would be nice if Jeep actually made a real hybrid Wrangler that got over 35 or 40mpg. Yeah, I know, I’m dreaming in code.

It does not appear you know what a PHEV is.

The image show the breakdown of my driving, I did 1,500 KM, and the vast majority of it, about 1,400 km is electric.

In my 2018 JLU Sahara which was exactly the same as this 2021 Sahara 4xe, I was lucky if I got 16 mpg, I was going through $400-$450 a month is gas, now I may put $20 a month in gas, I don't keep track of the gas because I very rarely put gas in the tank.

and don't ask about electricity cost, because I charge for free at the nearby mall, 10 minutes walk from my home, or 4 minutes by scooter or skateboard. And if I had to pay for charging it would be $3 0% to 100%.

I paid for charging initially, but after a couple of months I figured out I can just get away with free charging.

 

[Jeeperz Kreeperz]

Nothing to worry about. I just checked the IRS website and the list of vehicles that qualify for the Credit and the Jeep Wrangler 2023 4xe is on the list. See picture.

Actually, that list you posted appears to be the list of vehicles that meet the “final assembly in North America” requirement - which is ONLY important for vehicles that are purchased AND delivered between 8/16/2022 and 12/31/2022.

NOTE: Even though there are model year 2023 vehicles on that list, that list is NOT telling you that those vehicles will qualify in the calendar year 2023. Those are two very different things that I’m seeing a lot of people conflate.

The easiest way to think of it is the credit is now falling into several categories:

CATEGORY 1: Vehicles purchased prior to 8/16/2022
TREATMENT: Old (pre 8/16/2022) rules apply (manufacturer limits enforced, no final assembly requirement, etc.)

CATEGORY 2: Vehicles for which you signed a “binding contract” prior to 8/16/2022). See this link for the IRS’ very specific definition of a “binding contract” https://www.irs.gov/businesses/plug-in-electric-vehicle-credit-irc-30-and-irc-30d
TREATMENT: Old (pre 8/16/2022) rules apply (manufacturer limits enforced, no final assembly requirement, etc.)

CATEGORY 3: Vehicles purchased between 8/16/2022 and 12/31/2022 (but no binding contract prior to 8/16/2022)
TREATMENT: Old (pre 8/16/2022) rules apply - with one significant exception: Vehicle must meet the “final assembly in North America” requirement. The link from the IRS website takes you to this Dept of Energy list of vehicles that “may meet the final assembly requirement”. Jeep Wrangler PHEV (model year 2022 and 2023) are both on the list. https://afdc.energy.gov/laws/inflation-reduction-act

CATEGORY 4: Vehicles purchased on 1/1/2023 and later.
TREATMENT: New rules apply. Here is a good link containing the details: https://afdc.energy.gov/laws/409 As you can see from that link there are numerous requirements on the manufacturer’s part (half the credit is related to the percentage of minerals from the battery and battery components that must be extracted or processed in required countries; the other half of the credit is related to the percentage of battery components manufactured or assembled in required countries).

Some additional key requirements under the ‘new rules‘ (in effect 1/1/2023 and beyond):

$80,000 = max MSRP for SUVs, Vans, Trucks
$55,000 = max MSRP for other vehicles
$300,000 = max Modified Adjusted Gross Income (MAGI) for married filing jointly
$225,000 = max MAGI for those filing as head of household
$150,000 = max MAGI for those filing single

As you can see, a LOT changes on 1/1/2023. If you are hoping to capture this tax credit, PLEASE talk to your tax advisor as the IRS has promised further guidance on this. And with supply chain issues, and delays on ordered vehicles, some may want to consider abandoning an order (even if it means losing a deposit) so they can scoop one off a lot in late December and capture the $7,500 credit.

 

[Jeeperz Kreeperz]

Well that’s good news. That list appears to be from the Dept. of Energy site. But that is very reassuring that the 2 2023 Jeep 4xe’s will carry over into 2023 for the tax credit. But… Knowing the government, I will believe it when I see it.

@Lil Ronnie , I just wanted to make sure you saw the post above. That list that was posted did NOT indicate that the 2023 Jeep Wrangler PHEV would qualify for the tax credit in 2023 - only that the 2023 model qualified for the “final assembly in North America” requirement if delivered prior to 12/31/2022.

 

[Lil Ronnie]

Thx for pointing this out. Who knows what the wacky feds will do? I keep praying they will continue to follow through with the current rules instead of making new ones.
LR

 

[Hennessey17]

Amen. Just buy it and enjoy it. I like the way you think


I read domestic manufactures to included Jeep since you said all raised the prices.

Is Jeep still domestic? Stellantis is headquartered in Amsterdam. I don't mean to be pedantic, but I don't see the difference between a Honda Accord being designed in California, built in Ohio, but headquartered in Japan.

 

[Lil Ronnie]

Made in America by illegal immigrants. Ya gotta love this wacky USA.

 

[jxh034]

After 1/1/2023 you will not get the $7,500 credit on the 4xe. That is very clear. They do not pass either battery test. The US government estimated and budgeted for a grand total of 11,000 vehicles will be eligible in 2023 for the credit.

 

[Shasta_Steve]

While I happily took the money for the 4xe, I think it is pretty stupid policy to even have it included. The current policy is based strictly on battery size. If we were really trying to make a difference we would prioritize efficiency. The higher the efficiency the more rebate you get The Rav4 gets basically twice the range, with the same size battery, not to mention it's gas fuel economy is much better. I know its not a Jeep but then again the 4xe is not a "green" choice by hardly any measure. Not sure the taxpayer should be funding a lifestyle.

 

[evo8904]

My 2023 4xe was just delivered to the dealer and we finalized the paperwork. I leased it and the $7500 was taken off the cap. Definitely a big reason why I moved forward with the deal. Next year I was planning on getting a GC 4xe for my wife but if the tax credit isn’t available, it’s not happening.

 

[Lil Ronnie]

Just ordered my GC4xe. Still considering lease or purchase. Already have my 2006 Rubi and do not want to part with her. There is a bunch of uncertainty with the current administration and whoever controls it. Very sad times in America indeed.

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