[VirtualGuitars]

Read the full article here. It would take too long to edit it for proper forum formatting.

https://www.theverge.com/2023/10/6/2...p-irs-guidance

[Paladin1]

Previous rules, however, apply - i.e., final assembly in US, "qualified manufacturer, " etc. Also includes income and MSRP restrictions, so basically just extends what's on the books. BMW, right now, is out, although MB might qualify for some models, and of course, some US offerings, including Tesla.

[VirtualGuitars]

Originally Posted by Paladin1

Previous rules, however, apply - i.e., final assembly in US, "qualified manufacturer, " etc. Also includes income and MSRP restrictions, so basically just extends what's on the books. BMW, right now, is out, although MB might qualify for some models, and of course, some US offerings.

Another reason to lease since those savings are automatically passed down to the customer. They weren’t always doing that though and there’s no guarantees that BMW will do that forever.

[BMWEVGuy]

Originally Posted by VirtualGuitars

Another reason to lease since those savings are automatically passed down to the customer. They weren’t always doing that though and there’s no guarantees that BMW will do that forever.

The day BMW stops it will start loosing sale. By the way the numbers for BMW iX sales are pretty impressive in Q3 which may convince them to remain adamant about their decision to not join NACS bandwagon for some more time to come.

[darylp310]

Originally Posted by BMWEVGuy

The day BMW stops it will start loosing sale. By the way the numbers for BMW iX sales are pretty impressive in Q3 which may convince them to remain adamant about their decision to not join NACS bandwagon for some more time to come.

Remember that the $7,500 pass through is free for BMW. They get reimbursed by the government when we lease. So I can’t imagine they would stop offering it. They even started offering for the i4 M50 this month, but they don’t need to offer it yet with the i5 since there is so much built up demand. Buyers will be happy 3-6 months from now when the i5 is “magically” $7,500 cheaper!!

[VirtualGuitars]

Originally Posted by darylp310

Remember that the $7,500 pass through is free for BMW. They get reimbursed by the government when we lease. So I can’t imagine they would stop offering it. They even started offering for the i4 M50 this month, but they don’t need to offer it yet with the i5 since there is so much built up demand. Buyers will be happy 3-6 months from now when the i5 is “magically” $7,500 cheaper!!

FYI, BMW didn’t offer it until June or July. They were keeping the $7500 for themselves up until that point. I believe they started doing it when all of those stop sales were causing all of those vehicles piling up at the VPCs. They had a lot of inventory to move.

[DC_EV]

The original legislation was always meant to exclude cars like the iX from the credit because of high MSRP, lack of US assembly, and lack of US raw materials. Those were the conditions Sen. Joe Manchin insisted upon as a condition of renewing and expanding the rebate.

After the infrastructure bill that included the credit was signed into law the Europeans and Koreans were furious and lobbied the White House for a fix which led to the lease loophole. The IRS classified leased vehicles as a business expense which let the companies with cars that would not otherwise qualify to pass only the tax credit only when leasing the vehicle.

[BMWEVGuy]

Originally Posted by DC_EV

The original legislation was always meant to exclude cars like the iX from the credit because of high MSRP, lack of US assembly, and lack of US raw materials. Those were the conditions Sen. Joe Manchin insisted upon as a condition of renewing and expanding the rebate.

After the infrastructure bill that included the credit was signed into law the Europeans and Koreans were furious and lobbied the White House for a fix which led to the lease loophole. The IRS classified leased vehicles as a business expense which let the companies with cars that would not otherwise qualify to pass only the tax credit only when leasing the vehicle.

In my opinion this lease credit thing is better because then your income also does not come into play. There is no way for getting either iX or EQS many of us would be able to qualify for tax rebate.

[bmwix1]

IHMO, EV credit should be eliminated completely. All BEVs and PHEVs, new or used, should be priced $7500 or $4000 lower in MSRP. The real inclusiveness and equality is lower tax by $300 to everyone regardless of buying a car or not. Everyone benefits except automakers who manipulate the EV price.
For the first time ever, I saw iX is about US$10K cheaper in BMW Canada than BMW USA because this tax credit thing. Most ICE is cheaper in US than Canada.

[doctorzeus]

Originally Posted by bmwix1

IHMO, EV credit should be eliminated completely. All BEVs and PHEVs, new or used, should be priced $7500 or $4000 lower in MSRP. The real inclusiveness and equality is lower tax by $300 to everyone regardless of buying a car or not. Everyone benefits except automakers who manipulate the EV price.
For the first time ever, I saw iX is about US$10K cheaper in BMW Canada than BMW USA because this tax credit thing. Most ICE is cheaper in US than Canada.

I agree. The vast majority of iX owners or leases will make far above the maximum income requirement(...or are perhaps financially irresponsible). Do I "need" the rebate...not really, but $7.5k is not chump change and is just unfair to higher earners. The limit on high cost EVs seems a little more reasonable...maybe.

The price of EVs should be realistically priced lower because these car companies are not passing any of these savings through, just raising their prices and off setting it with rebates. These rebates just distort the actual sale price.

[BMWEVGuy]

Originally Posted by bmwix1

IHMO, EV credit should be eliminated completely. All BEVs and PHEVs, new or used, should be priced $7500 or $4000 lower in MSRP. The real inclusiveness and equality is lower tax by $300 to everyone regardless of buying a car or not. Everyone benefits except automakers who manipulate the EV price.
For the first time ever, I saw iX is about US$10K cheaper in BMW Canada than BMW USA because this tax credit thing. Most ICE is cheaper in US than Canada.

I see you point. But how can someone besides the manufacturer themselves determine MSRP of their product. Govt cannot get in this business and also shouldn't.

I am pretty sure OEMs are overpricing their cars. They more than well make up for all the R&D cost from plethora of ICE models and trims they sell. Some of which have been best sellers for long.

[ricerboi]

Originally Posted by darylp310

Remember that the $7,500 pass through is free for BMW. They get reimbursed by the government when we lease. So I can’t imagine they would stop offering it. They even started offering for the i4 M50 this month, but they don’t need to offer it yet with the i5 since there is so much built up demand. Buyers will be happy 3-6 months from now when the i5 is “magically” $7,500 cheaper!!

They weren’t offering it on leases for us early buyers in 2022. We only got it as a tax credit when we bought/financed. It was annoying that they did that but at least we were able to lock in 1.99% APR and MSRP for pre-orders made in 2021.