New 2013 Energi qualify for Tax credit?

[chung_chang]

Hi,

 

My first post here.  Wife and I test drove a brand new 2013 Energi today, and we both liked it a lot.  Does anyone know if:

1. It qualifies for the $4,007 federal tax credit?  I assume I'll need to do this on my next Tax filing in 2015?
2. It qualifies for the $2,500 Texas LDLPI incentive?  I checked the website but I'm not sure if a 2013 model year (brand new) qualifies?

Also, the salesman told us we would get money back from Ford for the fuel economy debacle.  Is this true?  The window sticker on the Energi still shows the old fuel economy numbers.  But I thought that program has long been expired.  He also claims it qualifies for both federal tax credit and Texas LDLPI incentive.  But given what he said about Ford still refunding money, I took his advices with a grain of salt.  Hope someone here could help us clear things up.

[fotomoto]

It qualifies for both!   I just got my Texas check for my 2013 purchased a couple of months ago in July.  I'll file for the $4007 in my federal taxes come January/February 2015.   You almost certainly will not get money back from Ford as they should have replaced the window sticker by now (new ones were issued back in May).  If it has the original sticker with the old EPA figures at the time of sale, you might get a check but that is a big "IF".

 

Good luck in your search!

[chung_chang]

Thank you!  That is good news.  We cannot decide between 300A and 303A.  Both have deep discounts, but are still $3,000 apart.  On the 303A, we mainly care for the backup camera and the front sensors for safety reasons.  This will be our daughter's car in a few years when she goes off to college.

[RobMax]

You should be able to go here and input the VIN to see if the vehicle qualifies for the fuel economy rebates. Would be odd if they hadn't already changed out the window sticker though.

http://www.etis.ford.com/vehicleRegSelector.do;jsessionid=C1BAABA2DC887259C62C3492A02754A3.eccvas505

[kostby]

Important notes about the Federal Electric Vehicle Tax Credit

• Check with your tax advisor BEFORE you purchase a plug-in hybrid!
• It is not a reduction of $4007 in your taxable income, but a one-time tax credit applied directly against federal taxes you owe. 
• If you do not pay at least $4007 in federal income taxes, you will not receive the full $4007 federal tax credit available on the purchase of a Ford plug-in C-MAX Energi. 
• It is not a tax refund either, so if you owe less than $4007 in Federal Income taxes, you lose the difference, and you will not receive the difference as a refund check, nor can it be applied to the following years' tax liability.
• Only the original registered owner of an eligible vehicle can claim the federal tax credit. 
• Even if the original registered owner didn't apply for the credit for some reason, it cannot be passed along to a subsequent buyer.
• If you lease it, you probably cannot claim the credit.

http://www.fueleconomy.gov/feg/taxphevb.shtml

http://www.edmunds.com/fuel-economy/the-ins-and-outs-of-electric-vehicle-tax-credits.html

http://www.washingtonpost.com/cars/federal-tax-credits-for-plug-in-hybrids-electric-cars-what-you-need-to-know/2014/08/20/0ae02718-2886-11e4-8b10-7db129976abb_story.html

http://www.irs.gov/irb/2009-48_IRB/ar09.html

http://www.irs.gov/Businesses/IRC-30D-Plug-In-Electric-Drive-Motor-Vehicle-Credit-Quarterly-Sales

[chung_chang]

Thanks Rob and Kostby!

 

I checked etis and didn't find anything on fuel economy rebate for the VIN.  Either I don't know what to look for, or it doesn't qualify.  I'm betting the latter.

 

My wife does the taxes and she looked over the bullet points above carefully.  She says we should have no problems.  The way she explained it to me, we definitely owe more than $4,007 in taxes.  But because my employer deducts most of it from my paychecks, we usually pay very little or even get refunds during tax filling.  I suppose we'll just get more refunds on our next filing.  Hope she's not wrong about this!

[homestead]

Should look like this after entering vin.

14B03 - FUEL ECONOMY CUSTOMER SATISFACTION

[kostby]

Thanks Rob and Kostby!

 

I checked etis and didn't find anything on fuel economy rebate for the VIN.  Either I don't know what to look for, or it doesn't qualify.  I'm betting the latter.

 

My wife does the taxes and she looked over the bullet points above carefully.  She says we should have no problems.  The way she explained it to me, we definitely owe more than $4,007 in taxes.  But because my employer deducts most of it from my paychecks, we usually pay very little or even get refunds during tax filling.  I suppose we'll just get more refunds on our next filing.  Hope she's not wrong about this!

 

So, as long as you owe more than $4007 Federal income tax during the tax year that you buy the car, you should be fine. 

You've paid taxes through payroll deduction or estimated tax payments through the year, so when you apply this credit you would owe less and/or get a larger refund. 

 

The problem comes if you only owed a total of say, $2500 in Federal tax. The IRS would not send you a refund check for the other $1507 difference, nor would they allow you to apply $1507 to next year's federal tax liability. You would just lose it.

 

I mentioned the restrictions because we had large tax credits for permitted education expenses while my son was in college the prior four years, so we would not have received the full benefit of the EV Federal tax credit.

 

Now we're both retired, and with charitable deductions, we likely will not have enough taxable income to take advantage of the full $4007 tax credit.

That was a consideration (besides trunk space) in purchasing a C-MAX Hybrid instead of a plug-in Energi. 

Edited September 24, 2014 by kostby

[fotomoto]

 

The problem comes if you only owed a total of say, $2500 in Federal tax. 

 

 

By saying "owed", many including myself think of the bottom line of our taxes where we either owe or get a refund but this is not the best way of wording things.  Rather it's the total taxable amount on our income after the standard deductions.  This is the tax figure on line 46 of the 1040 form not line 74 (amount of refund) or line 76 (amount owed).     Most folks, especially joint households, who can comfortably afford an Energi easily have $4007+ in tax liability.

[chung_chang]

Thanks all.  Homestead, I didn't see that description on etis, so no refunds from Ford for me.  We should get our Energi by this weekend hopefully.