Bye, Bye 4xe tax credit for 2023 Wranglers

[4x4snowmachinejeep]

I think the entire tax credit and lane use for EV state and federal system needs to be fixed - because a household makes more money you don't get the same benefits- should just price the vehicle right to begin with and let the manufacturers work with the government.

Its a joke on the EV consumer to make us do all the work that could just be done faster and fair across all incomes.

Sponsored

 

[jxh034]

Getting my 3rd and last $7,500 credit.
2021 Buy for $57.5k -$7500 = $50k Sold for $57k after 12,000 miles
2022 Buy for $60.5-$7500 = $54k Sold for $58k after 10,000 miles
2023 Bought for $64.5k - $7500 = $57k

So $46k all in for a 2023 Rubicon + 22k miles/2years on previous ones

My favorite vehicle ever

 

[GMONEY]

This is a correct statement.

But the income limit went into effect when it was signed right.

 

[wdbrjr]

But the income limit went into effect when it was signed right.

No, that part of the law should go into effect 1/01/23.

 

[GMONEY]

No, that part of the law should go into effect 1/01/23.

Well I might need to go back and look then

Although I'll like stay with the 2 door

 

[jmj8355]

So from reading through this thread it seems the takeaway is next year we will not be able to get the credit because of the two new aspects of the law which require the battery and critical minerals to be sourced from the USA or countries we have trade agreements with. Is that accurate and are we waiting for final guidance which may give more time for manufacturers to meet those aspects of the law or is the thought that our goose is cooked for 2023 orders in 2023? This greatly impacts my planning for what vehicle and drive train etc. Cant imagine paying the 4xe premium without the credit.

 

[jxh034]

Purchase your 4xe by 12/31/2022 to get the $7500 credit. Will be years before it will eligible again. By that time MSRP might be over 100k.

 

[pantheman75]

So I can get the tax rebate on 2023 model year Wrangler 4xe's if the deal closes before the end of 2022?

 

[RockymtnJL]

So I can get the tax rebate on 2023 model year Wrangler 4xe's if the deal closes before the end of 2022?

correct. I’ll be taking delivery in about 30 days on a 23 And getting the tax benefit.

 

[Dabrakeman]

Doesn't apply to me but after reading through all of this the only thing that might remain unclear is what defines "purchase". I.e. say you order a 4xe in November '22 and it is delivered in January '23? Finances aren't closed until after the vehicle is delivered.

 

[GATORB8]

Doesn't apply to me but after reading through all of this the only thing that might remain unclear is what defines "purchase". I.e. say you order a 4xe in November '22 and it is delivered in January '23? Finances aren't closed until after the vehicle is delivered.

Jeep doesn’t invoice the dealer until the item ships. May be some funny time between shipment and delivery, but you’d have to get the dealer to sell it to you en route.

 

[Jeeperz Kreeperz]

Doesn't apply to me but after reading through all of this the only thing that might remain unclear is what defines "purchase". I.e. say you order a 4xe in November '22 and it is delivered in January '23? Finances aren't closed until after the vehicle is delivered.

Jeep doesn’t invoice the dealer until the item ships. May be some funny time between shipment and delivery, but you’d have to get the dealer to sell it to you en route.

It’s actually the date you take delivery. See the IRS page on this question here:

https://www.irs.gov/businesses/plug-in-electric-vehicle-credit-irc-30-and-irc-30d

Note the subheading: ”Vehicles Purchased and Delivered between August 16, 2022 and December 31, 2022” (italics mine)

This is in keeping with multiple other IRS rules related to vehicles that often use the start date as the date the vehicle was ”placed in service”.

So, unless we see some IRS guidance otherwise, there does not appear to be any way around this - not even paying the dealer 100% of the purchase price in cash at the time of order. If the vehicle is not delivered to you by 12/31/2022, it appears you will not receive the tax credit under the way the law is currently written.

As I’ve said in a prior post, if you have a 4xe on order and it appears the delivery will be delayed until after 12/31/2022, you might want to consider abandoning your order (even if you have to lose your deposit), simply so you can purchase a 4xe off a dealer lot, take delivery by 12/31/2022, and capture the full $7,500 credit. I’d rather lose $1,000 deposit, and capture a $7,500 tax credit, than keep my deposit, and lose the tax credit.

 

[BXFXJeep]

If you want to be a patriotic american, you'll support USA manufacturing. Laws like this are designed to reward companies which put factories in the USA.... and thus penalize those that don't.

And other laws designed by the same people sent manufacturing fleeing to other countries, and made local manufacturing expensive, which sorta means, the locally made stuff would be even more expensive than the tax incentives.

But the bottom line is these tax incentives are meant to funnel tax payers money into pockets of cronies.

 

[4XEJeepOwner]

Hey All, we just received our 2023 Jeep Sahara 4XE, so we meet the requirement I see many say on this forum in that we need that done by 12/31/2022. From order it only took us 3.5 weeks for delivery to the dealership, but we didn't have add-ons other than the hard top.

My main question now, is understanding the following article below from today.

Tax Credit Artcicle

It suggests that, "The clean vehicle credit is worth up to $7,500. It’s nonrefundable, meaning buyers need to have a federal tax liability to get full or partial benefits."

The article later suggests, " Workers can also adjust the tax withholding on their paychecks, opting to withhold less and thereby increasing the taxes they owe."

I think it is sort of dumb if the government punishes people who pay their taxes throughout the year rather than paying them later.

Maybe I am reading this article wrong? Apologies if this was already discussed on this thread and I missed it.

 

[pantheman75]

I talked to my tax person yesterday and this is incorrect. Your tax bill needs to be $7500 or more to take full advantage. If your tax bill is $7500 and you've withheld $7500 during the year you'd get a credit of $7500 on your bill, therefore your final bill would be $0, and you'd get your withheld $7500 back as a refund. If your tax bill was $5000 and you withheld $5000 during the year, you'd only get a credit of $5000 (not $7500) because the other $2500 is non-refundable. You'd then get your withheld $5000 as a refund.

Sponsored