Jeep Wrangler 4xe Forum banner
1 - 20 of 33 Posts

·
Registered
Joined
·
168 Posts
Discussion Starter · #1 · (Edited)
tl;dr. If you make less than $400,000, and order a 4xe that costs less than 69K, you would get $8,500 (or $9,000) if this passes.

Correct me if I'm wrong. The current house bill due for a vote and pre-reconcilation is here and the consumer credit discussion begins at page 1240, though by all means read the entire thing. I apologize for the formatting. Blame Congress.

The way I read it, the 4xe qualifies for (these items are additive):

(2) BASE AMOUNT.—The amount determined under this paragraph is $4,000. YES=$4000

(3) BATTERY CAPACITY.—In the case of a new
qualified plug-in electric drive motor vehicle, the
amount determined under this paragraph is $3,500
if—
(A) in the case of a vehicle placed in service before January 1, 2027, such vehicle draws
propulsion energy from a battery with not less
than 40 kilowatt hours of capacity and has a
gasoline tank capacity not greater than 2.5 gallons, and
(B) in the case of a vehicle placed in service after December 31, 2026, such vehicle
draws propulsion energy from a battery with
not less than 50 kilowatt hours of capacity and
has a gasoline tank capacity not greater than
2.5 gallons.
NO = gas tank more than 2.5G, also battery capacity is only 17.3 kWh.

(4) DOMESTIC ASSEMBLY.—In the case of a
new qualified electric drive plug-in vehicle which satisfies the domestic assembly qualifications, the
amount determined under this paragraph is $4,500. Assume yes = $4,500.

(5) DOMESTIC CONTENT.—In the case of a
new qualified electric drive plug-in vehicle which satisfies domestic content qualifications, the amount determined under this paragraph is $500.

-----Later definition: (2) DOMESTIC CONTENT QUALIFICATIONS.—
The term ‘domestic content qualifications’ means,
with respect to any model of a new qualified plug-
in electric vehicle, that vehicles of that model are
powered by battery cells which are manufactured in
the United States as certified by the manufacturer
at such time and in such form and manner as the
Secretary may prescribe

Don't know = ???

----Limitations

Then there is an income limitation. If you make less than $400,000, this does not apply but take a look if you make more than that.

Then there is a price limitation, which in short says if your vehicle is more than 69K, no credits at all (Rubicons and HAs can go above this so talk to your dealer as you build and make sure the price works) :

(1) IN GENERAL.—No credit shall be allowed
under subsection (a) for a vehicle with a manufac
turer’s suggested retail price in excess of the appli
cable limitation.

(2) APPLICABLE LIMITATION.—For purposes
of paragraph (1), the applicable limitation for each
vehicle classification is as follows:

(B) SPORT UTILITY VEHICLES.—In the
24 case of a sport utility vehicle, $69,000.


tl;dr. If you make less than $400,000, and order a 4xe that costs less than 69K, you would get $8,500 (or $9,000) if this passes.

This page has a good summary of the two bills pending and that need reconcilation. It's Tesla biased but you get the gist.
 

·
Registered
Joined
·
168 Posts
Discussion Starter · #3 ·
Great writeup! Do you know if that $69k is the cost of the actual vehicle or the final cost after TTL?
It says msrp so assume that’s before ttl. Bill is not yet reconciled and house hasn’t even passed it yet but Senate and house are close enough to guess these numbers are about right. Senate vehicle cap is $80,000.
 

·
Registered
Joined
·
54 Posts
Personally I don't see the point for this exercise. Tesla and GM are doing just fine with their EV sales (esp. Tesla) without any incentives. All the other manufactures can still enjoy the full EV rebate (Jeep included). It comes at a huge cost. For simplicity, assuming the average rebate/credit is $10K, and 600K (conservatively) BEV&PHEV vehicles sold per year (PHEV Registrations Increase 104% Q1 2021 Over Q1 2020), that's $6B per year, and most likely will be more. And we are already in an inflationary environment.
 

·
Registered
Joined
·
286 Posts
What I find confusing on that write up (the linked one) it looks like that the $8500 or $9000 only applies to cars bought after 12/31/21 There is an * next to items like the Union built credit that says bonuses apply to EVs built after 12/31/21.
So what does that mean for those of us who bought this year, the current $7500 non-refundable credit? Or possibly just the $4000 if the bill passes?
 

·
Registered
Joined
·
168 Posts
Discussion Starter · #9 ·
What I find confusing on that write up (the linked one) it looks like that the $8500 or $9000 only applies to cars bought after 12/31/21 There is an * next to items like the Union built credit that says bonuses apply to EVs built after 12/31/21.
So what does that mean for those of us who bought this year, the current $7500 non-refundable credit? Or possibly just the $4000 if the bill passes?
This bill is just for 2022 and after. You get the rebate now in effect.
 

·
Registered
Joined
·
258 Posts
Personally I don't see the point for this exercise. Tesla and GM are doing just fine with their EV sales (esp. Tesla) without any incentives. All the other manufactures can still enjoy the full EV rebate (Jeep included). It comes at a huge cost. For simplicity, assuming the average rebate/credit is $10K, and 600K (conservatively) BEV&PHEV vehicles sold per year (PHEV Registrations Increase 104% Q1 2021 Over Q1 2020), that's $6B per year, and most likely will be more. And we are already in an inflationary environment.
GM can't hardly give their EVs away. They definately aren't doing fine with EV sales. They are way behind and fighting for their business life.
 

·
Registered
2022 Jeep Wrangler U Rubicon 4xE (on order)
Joined
·
54 Posts
What I find confusing on that write up (the linked one) it looks like that the $8500 or $9000 only applies to cars bought after 12/31/21 There is an * next to items like the Union built credit that says bonuses apply to EVs built after 12/31/21.
So what does that mean for those of us who bought this year, the current $7500 non-refundable credit? Or possibly just the $4000 if the bill passes?
Tax bills generally are not retroactive, so that makes sense to me. They are writing tax law for next year.
 

·
Registered
Joined
·
286 Posts
Tax bills generally are not retroactive, so that makes sense to me. They are writing tax law for next year.
Not always, we have had a few relatively recently that went into place immediately and this one has a retroactive clause in it, at least for vehicles that have already been phased out, and there have been talks that it could be fully retroactive.

I am hopeful it it will just be for vehicles going forward and those of us who purchased now will still see the benefit of the $7500 rebate.
 

·
Registered
2022 Jeep Wrangler U Rubicon 4xE (on order)
Joined
·
54 Posts
Not always, we have had a few relatively recently that went into place immediately and this one has a retroactive clause in it, at least for vehicles that have already been phased out, and there have been talks that it could be fully retroactive.

I am hopeful it it will just be for vehicles going forward and those of us who purchased now will still see the benefit of the $7500 rebate.
Its only happened three other times that i can find 1969, 1987, and 1993..... the odds are in our favor?
 

·
Registered
Joined
·
168 Posts
Discussion Starter · #17 ·
GM can't hardly give their EVs away. They definately aren't doing fine with EV sales. They are way behind and fighting for their business life.
Bolt sales skyrocketed this year and they don’t have the incentive. My wife has one and it’s a darn good car for A-B driving. She puts 2K per month on it with her job in healthcare and we regularly take it on 2 hour drives to a weekend destination. Off road never. Sexy not at all. Solid little crossover yes.
 

·
Registered
Joined
·
286 Posts
Its only happened three other times that i can find 1969, 1987, and 1993..... the odds are in our favor?
Didn't it happen during the Trump administration? I know something happened in the last 8 years I am no tax expert, but I remember when my take home pay increased. Maybe it was just a temporary payroll tax cut?

Either way, none of this is anywhere near final.
 

·
Registered
2022 Jeep Wrangler U Rubicon 4xE (on order)
Joined
·
54 Posts
Didn't it happen during the Trump administration? I know something happened in the last 8 years I am no tax expert, but I remember when my take home pay increased. Maybe it was just a temporary payroll tax cut?

Either way, none of this is anywhere near final.
I should have qualified “it”. Retroactive tax increases is what I was talking about. Because lowering peoples take home pay is popular, it’s a completely different ball game. I’m not sure how late a bill can pass and still be applied to a TY. So let’s cross our fingers and hope congress doesn’t get their act together this year 😂
 

·
Registered
Joined
·
168 Posts
Discussion Starter · #20 ·
I can’t yet find actual text but here’s a story.


Sounds like the exact same framework as the original but with changes to the income (250 individual/400 joint) and msrp (89K cap vs 69 before) provisions. Assuming you don’t hit those, the 4xe would still qualify for 8K.

Developing……..
 
1 - 20 of 33 Posts
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top