Tax Credit Question after April 18th 2023

My Nissan Leaf Forum

Help Support My Nissan Leaf Forum:

This site may earn a commission from merchant affiliate links, including eBay, Amazon, and others.

Flyct

Well-known member
Leaf Supporting Member
Joined
Nov 3, 2015
Messages
647
Location
Bradenton, Florida, US
I searched but can't find answer here. On the web I read that after 4/18 the Leaf won't qualify for the tax credit. What is the real deal? Will still qualify for full $7,500, qualify for the reduced $3,750 credit of loose all credits?

Telsa announced that it will lose full creed for the standard range Model 3 but al other Model 3 and Model Y's that currently qualify will still qualify for full $7,500 after 4/18.

This link is the only thing I can find about which cars will qualify after 4/18 and the Leaf is still questionable?
https://www.npr.org/2023/04/15/1169763545/electric-cars-vehicles-tax-credit-climate-bill


------------------------------------------------
From above link

But beware: being 'eligible' doesn't guarantee a tax credit
In order to get a tax credit, other requirements still apply. Vehicles must meet battery size and vehicle weight requirements and, more significantly, meet these two requirements:

1- Be assembled in North America
Have a sticker price of less than $55,000 for cars and $80,000 for SUVs and trucks

Those rules covered not only the manufacturing of the car, but also the sourcing of the materials that go into the batteries of the vehicles.

The EPA says Americans could save $1 trillion on gas under its auto emissions plan
YOUR MONEY
The EPA says Americans could save $1 trillion on gas under its auto emissions plan
2- One of the $3,750 credits focuses on the raw materials inside batteries: a certain percentage of critical minerals, like lithium, graphite and cobalt, need to be mined or processed in the U.S. or a trade partner.

3- The other $3,750 credit is about battery manufacturing: a certain percentage of the battery components, like anodes, cathodes and electrolytes, need to be manufactured or assembled in North America.
 
Other than ones already excluded (e.g. not assembled in NA, over the price limits), we are supposed to find out for sure on 4/18/23. Before that, it's mostly a guess, educated, at best.

There were percentages like the below:
https://home.treasury.gov/news/press-releases/jy1379
https://afdc.energy.gov/laws/409

I haven't followed closely as I'm ineligible anyway, being way over the income cap. The leasing loophole is interesting, provided the leasing company passes on most/all of the savings onto the lessee. Unfortunately (?), I shouldn't be in the market for another EV until end of Jan 2025... Still not sure if I'd buy out my '22 Niro EV at end of lease.
 
Well, I got my answer today . All Nissan EVS o longer qualify for tax credit

Which cars qualify for EV tax credits
Vehicles that qualify for the full $7,500 in tax credits include:
• Cadillac Lyriq
• Chevrolet Blazer
• Chevrolet Bolt
• Chevrolet Bolt and EUV
• Chevrolet Equinox
• Chevrolet Silverado
• Chrysler Pacifica PHEV
• Ford F-150 Lightning
• Lincoln Aviator Grand Touring
• Tesla Model 3 Performance
• Tesla Model Y (All-Wheel Drive, Long Range All-Wheel Drive and 2022 Performance)
Other vehicles qualify for $3,740 in tax credits, including:
• Ford Escape Plug-in Hybrid
• Ford E-Transit
• Ford Mustang Mach-E
• Jeep Grand Cherokee PHEV 4xe
• Jeep Wrangler PHEV 4xe
• Lincoln Corsair Grand Touring
• Tesla Model 3 Standard Range Rear Wheel Drive
 
I had to dig for where you got the list from (having missed that you posted it in the OP). https://www.npr.org/2023/04/15/1169763545/electric-cars-vehicles-tax-credit-climate-bill makes the claims that you mention. What a mess!

Hope .gov sites can confirm now/soon.

Update: https://www.chevybolt.org/threads/irs-updated-guidance-ev-and-euv-still-get-full-7500-after-4-17.49785 has some pointers like these:
https://www.irs.gov/pub/irs-utl/clean-vehicle-credit-30d-after-4-17-2023.pdf
https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after-0
https://fueleconomy.gov/feg/tax2023.shtml
 
Here is an email from my local Nissan dealer:

"Today the government released the list of EV's that will qualify for the tax credits under the new Inflation Reduction Act. The LEAF will no longer qualify starting tomorrow April 18th. I wanted to let you know that if you are looking for a new LEAF and want to get the tax credit for this year's taxes, I have 10 available to purchase. Please let me know if you are interested and we can talk about what is avalable.

You can also talk to my sales manager Will Topham or Joey Parent, we can be reached at (303) 443-8110 .

Thanks everybody! Sorry for the short notice but I wanted to keep my customers informed."
 
DougWantsALeaf said:
So does the Leaf die now except for leased cars with the loss of tax credit and being significantly undercut by the Bolt.

I think new leaf purchases will die for sure now that they effectively just jumped up $7,500.

An SV Plus lists for about $38,000. A Teals Model Y AWD Sells for about$50,000 less the $7,500 tax credit so for net of $4,500 more you get a car with 279 miles of range vs 213 miles plus the availability of the reliable Super Charger network. Plus order online with no negotiation, just like you are ordering from Amazon. Better yet the Model Y Long Range at about $53,000 less the $7,500 has 330 miles of range.

I think Bolt is going to have an availability issue and likely have "market Adjustment" to prices locally. The Equinox will be a interesting EV when it becomes available.
 
cwerdna said:
https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after-0
Oddly, I swear this link was working this morning and there's currently still a Google cached version of it but nobody submitted it to other archive sites like archive.org or archive.is in time.

A quick glance shows that https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after might be the same thing.
 
DougWantsALeaf said:
Leasing will maybe still continue for the Leaf, but little more then that. Maybe a few wealthy couples buying a perceived safe boring car for their teenager.

Mine did that - a Volvo 122S with the dreaded Borg-Warner 3 speed automatic. I discovered that while slow to 60, it would cruise happily at 90, and was still stable at its 110MPH top speed. So among the high school racers at my school, I was the one who no one expected to see blowing by them 5 or 10 minutes into a race.
 
Flyct said:
DougWantsALeaf said:
So does the Leaf die now except for leased cars with the loss of tax credit and being significantly undercut by the Bolt.

I think new leaf purchases will die for sure now that they effectively just jumped up $7,500.

An SV Plus lists for about $38,000. A Teals Model Y AWD Sells for about$50,000 less the $7,500 tax credit so for net of $4,500 more you get a car with 279 miles of range vs 213 miles plus the availability of the reliable Super Charger network. Plus order online with no negotiation, just like you are ordering from Amazon.
Yeah, probably esp. if the tax credit can't be raised to some substantial amount above $0 soon... Per pricing tab of https://usa.nissannews.com/en-US/releases/2023-nissan-leaf-press-kit, '23 Leaf SV Plus is $36,040 + $1,095 dest fee.

Model Y is $49,990 + $1,390 dest fee. So, the delta is actually $6,745 not including sales tax. But I hear you. Better comparison might be Model 3, which is cheaper ($41990 + 1390 dest charge - 3750 tax credit) and still considerably better EPA range rating of 272 miles vs. 212 for SV+. If I did my math right, the delta (not including tax and license) is about $2500 for those who qualify for the Federal tax credit.

But it is so screwed vs. Bolt. Bolt seems to have starting MSRP of $26,500 + $995 dest charge --> $27,495. But it's eligible for the full $7500 Federal tax credit and it has 259 mile EPA range rating vs. 212 of Leaf SV+. And, Bolt has battery thermal management and CCS inlet standard now. Problem seems to be limited inventory and many stories of dealers marking them up.

https://www.reuters.com/business/autos-transportation/vw-rivian-nissan-bmw-lose-access-us-ev-tax-credits-2023-04-17/ says:
"VW said it was "fairly optimistic" the ID.4 SUV will qualify for the tax credit. "We are awaiting the proper documentation from a supplier to determine its eligibility for the credit," the German automaker said. Nissan Motor Co (7201.T) said it is "working closely with our suppliers and are hopeful that Leaf will qualify for at least partial credit in the future.""
 
I think prior to this change you could make the case that a Bolt at a similar trim level was in the 30s, so not quite the delta with a Bolt, but now that it's no rebate for the Leaf and full for the Bolt...only those that can't find a Bolt (which likely happens until GM hits its 50-100k Bolts a quarter later this year) would even look at a Leaf.
 
TIL that Model 3 prices dropped and it looks like so have the Y.

3 now seems to start at $39,990 + $1,390 dest charge and that version is eligible for $3750 tax credit = $37,630. For qualifying buyers, that now shrinks the delta between a '23 Leaf SV+ MSRP and this to $495, not including tax and license.
 
cwerdna said:
TIL that Model 3 prices dropped and it looks like so have the Y.

3 now seems to start at $39,990 + $1,390 dest charge and that version is eligible for $3750 tax credit = $37,630. For qualifying buyers, that now shrinks the delta between a '23 Leaf SV+ MSRP and this to $495, not including tax and license.

Today's Tesla Price Reduction. The Model Y AWD is now $46,990++=$48,620 Minus the $7,500 tax credit makes it $41120 or about $4k more than a SV Plus.

I didn't fit comfortably in a Model 3, but my 76 year old, 6 foot 250 lb body fits fine in the Model Y or a Leaf.

There is no way I would select a Leaf over a Model Y today. I'm not Laf bashing. I am a person who loved and owned 5 Leafs in the past. If I were younger and smaller :) I would go for a Model 3 today for essentially the same price as a Leaf.

My "Frugal" sister bought a 2023 Leaf S a 2 months ago. After Fed and CA tax credits it cost her less than $20k. I sent her a text today that her car increased in value today since the Fed Credit is no longer applicable. She loves the car but is disappointed in the range and wishes she bought a longer range EV. I tried to tell her to expect 70% of published range on the highway in any EV and the Leaf S range would be an issue in CA.
 
Latest news:
"In the U.S., Tesla lowered the price of what Bernstein estimates is its most popular vehicle—the long-range Model Y crossover—by $2,000 earlier this month and another $3,000 overnight. That configuration now costs $49,990, before taxes and fees. "
 
It looks like the 2024 Leaf purchases this year will qualify for the partial $3750 tax credit since they're certified to meet the “battery component” requirements...
https://usa.nissannews.com/en-US/releases/2024-nissan-leaf-eligible-for-3750-ev-tax-credit
 
Back
Top