[ncatoffice]

I have an opportunity to place an order for a 2023 x5 45e that can still be delivered this year. From everything I have read, that should qualify us for a federal tax credit of $7500. The only clause that disqualifies us next year is the income cap. I just wanted to check if there are any other overarching conditions that I need to be aware of that may disqualify us from the federal tax credit if the vehicle is purchased this year. Thank you!

[TurtleBoy]

No, the only change to the EV credits that became effective with the signing of the bill is the requirement for the vehicle to be assembled in NA. The 45e fits that so you are good.

The 45e will not qualify for the tax credit next year so you will want to get it prior to 1/1/23.

[RubiconJoey]

Originally Posted by TurtleBoy

No, the only change to the EV credits that became effective with the signing of the bill is the requirement for the vehicle to be assembled in NA. The 45e fits that so you are good.

The 45e will not qualify for the tax credit next year so you will want to get it prior to 1/1/23.

I assume that next year the 45e won't qualify because of the battery not being made in the US, correct? I've been looking for one, but it's not looking like I'll be able to find one (with the options/colors I want) before the end of the year without flying out to California.

[Cannondale900]

Originally Posted by RubiconJoey

I assume that next year the 45e won't qualify because of the battery not being made in the US, correct? I've been looking for one, but it's not looking like I'll be able to find one (with the options/colors I want) before the end of the year without flying out to California.

Correct w/r/t battery materials not being sourced in US.

Also, vehicle price limitations and personal income limitations come in to play in 2023 as well.

[TurtleBoy]

Originally Posted by RubiconJoey

I assume that next year the 45e won't qualify because of the battery not being made in the US, correct? I've been looking for one, but it's not looking like I'll be able to find one (with the options/colors I want) before the end of the year without flying out to California.

There are two portions to the battery requirements, source of material and value of assembly in NA. The 45e shouldn’t meet either of those.

[veg8]

Originally Posted by TurtleBoy

There are two portions to the battery requirements, source of material and value of assembly in NA. The 45e shouldn’t meet either of those.

Since the tax credit next year is split between the Critical minerals minimum percent value requirement and the Battery components minimum percent value requirement, in theory if BMW brings online their assembly investment in Woodruff, South Carolina quickly like in 2-3 years they would qualify for half the credit, $3,750 assuming that's easier to do than sourcing the critical minerals part (since you can ship the materials sourced from wherever and then just assemble here). The income and msrp caps would still apply.

Below are sliding scales based on year
Year Battery components minimum percent value requirement (Battery’s components that are manufactured or assembled in North America)
2023 50%
2024 and 2025 60%
2026 70%
2027 80%
2028 90%
2029 and later 100%

Year Critical minerals minimum percent value requirement (value of the battery’s critical minerals that are extracted or processed in the United States or a U.S. free-trade agreement partner or recycled in North America,)
2023 40%
2024 50%
2025 60%
2026 70%
2027 and later 80%

[robg]

Originally Posted by veg8

Since the tax credit next year is split between the Critical minerals minimum percent value requirement and the Battery components minimum percent value requirement, in theory if BMW brings online their assembly investment in Woodruff, South Carolina quickly like in 2-3 years they would qualify for half the credit, $3,750 assuming that's easier to do than sourcing the critical minerals part (since you can ship the materials sourced from wherever and then just assemble here). The income and msrp caps would still apply.

Below are sliding scales based on year
Year Battery components minimum percent value requirement (Battery’s components that are manufactured or assembled in North America)
2023 50%
2024 and 2025 60%
2026 70%
2027 80%
2028 90%
2029 and later 100%

Year Critical minerals minimum percent value requirement (value of the battery’s critical minerals that are extracted or processed in the United States or a U.S. free-trade agreement partner or recycled in North America,)
2023 40%
2024 50%
2025 60%
2026 70%
2027 and later 80%

Yeah it'll certainly be interesting to see how quickly BMW and other manufacturers can ramp up North American battery manufacturing. I've read that Hyundai is really trying to accelerate their plans for build their GMP platform EVs in the US (and batteries too).

[RubiconJoey]

Originally Posted by TurtleBoy

There are two portions to the battery requirements, source of material and value of assembly in NA. The 45e shouldn’t meet either of those.

Thanks...This is what I was afraid of. Everything I've read seemed to indicate this was the case, but was hoping I was wrong.
Fingers crossed that I can find one before the end of the year and take advantage of the credit while it's still available.

[scungilio]

Originally Posted by veg8

Since the tax credit next year is split between the Critical minerals minimum percent value requirement and the Battery components minimum percent value requirement, in theory if BMW brings online their assembly investment in Woodruff, South Carolina quickly like in 2-3 years they would qualify for half the credit, $3,750 assuming that's easier to do than sourcing the critical minerals part (since you can ship the materials sourced from wherever and then just assemble here). The income and msrp caps would still apply.

Below are sliding scales based on year
Year Battery components minimum percent value requirement (Battery’s components that are manufactured or assembled in North America)
2023 50%
2024 and 2025 60%
2026 70%
2027 80%
2028 90%
2029 and later 100%

Year Critical minerals minimum percent value requirement (value of the battery’s critical minerals that are extracted or processed in the United States or a U.S. free-trade agreement partner or recycled in North America,)
2023 40%
2024 50%
2025 60%
2026 70%
2027 and later 80%

This is just ridiculous. Only the US Government could come up with something this complicated.
The federal government has absolutely no business getting its face in private business in this fashion. Let the electric stuff sell on its own merrit. The guy busting his ass every day with a pick and shovel down in a ditch should not be subsidising EVs driven by doctors and lawyers that they could not possibly afford. None of this should have ever happened.

[Jebryan]

Originally Posted by scungilio

This is just ridiculous. Only the US Government could come up with something this complicated.
The federal government has absolutely no business getting its face in private business in this fashion. Let the electric stuff sell on its own merrit. The guy busting his ass every day with a pick and shovel down in a ditch should not be subsidising EVs driven by doctors and lawyers that they could not possibly afford. None of this should have ever happened.

Lol, here we go again. Everyone is well aware of your disdain with the EV tax credit.

[scungilio]

Originally Posted by Jebryan

Lol, here we go again. Everyone is well aware of your disdain with the EV tax credit.

Indeed a perspective that is shared by many but obviously not you and that is just fine by me my friend.
Last I heard it is still legal and acceptable to be critical of government policies in the United States.
I'll bet you have done the same. Nothing to get excited about.

[jad03060]

People as a group tend to look out more for themselves than others (family maybe excepted)...it often takes some government actions to set some priorities.

[scungilio]

^^^^^You are more than welcome to allow the government to "set" your family's priorities. Be my guest.
Wow, the mere thought of someone welcoming this is pretty scary.
You've probably paid your share of taxes along the way so you might as well take them up on the offer if this is the type of vehicle you are really looking for.

[jad03060]

We have speed limits, stop signs, yield signs, seat belt laws, laws against murder, theft, and the list goes on. Without them, many would just take what they want and damn the others to whatever their fate ended up being. Certainly, that doesn't stop people from breaking those laws, but the expectation is you don't have to worry about being robbed, beaten, or killed walking down the street, and that people that break those norms will have at least some inhibition from perpetrating them, and society will punish them if they do.

That's one reason why we have sewers, clean water supplies, and reliable power most places in the USA, otherwise, those downstream would have big problems as that's where the shit tends to run, and you can generally see more than 1/4-mile in LA because the air is not full of smog like it used to be. Somebody has to set the rules...vote.

[cptcolo]

Originally Posted by veg8

Since the tax credit next year is split between the Critical minerals minimum percent value requirement and the Battery components minimum percent value requirement, in theory if BMW brings online their assembly investment in Woodruff, South Carolina quickly like in 2-3 years they would qualify for half the credit, $3,750 assuming that's easier to do than sourcing the critical minerals part (since you can ship the materials sourced from wherever and then just assemble here). The income and msrp caps would still apply.

Below are sliding scales based on year
Year Battery components minimum percent value requirement (Battery’s components that are manufactured or assembled in North America)
2023 50%
2024 and 2025 60%
2026 70%
2027 80%
2028 90%
2029 and later 100%

Year Critical minerals minimum percent value requirement (value of the battery’s critical minerals that are extracted or processed in the United States or a U.S. free-trade agreement partner or recycled in North America,)
2023 40%
2024 50%
2025 60%
2026 70%
2027 and later 80%

Good find, it looks like BMW will be making the battery cells themselves (the majority of the battery pack cost) in the Woodruff SC plant, so the new cars using these cells would then most likely qualify for at least half the credit:
https://www.sccommerce.com/news/bmw-...-and-footprint

[Guy Fleegman]

Originally Posted by scungilio

Indeed a perspective that is shared by many but obviously not you and that is just fine by me my friend.
Last I heard it is still legal and acceptable to be critical of government policies in the United States.
I'll bet you have done the same. Nothing to get excited about.

It's not your opinions that are offensive. It's your insulting tone. Tossing in the occasional "my friend" doesn't make it any less obnoxious. I've only been on this forum for a few months, but I've observed that most people find a way to disagree without being disagreeable. Not all, obviously.

[scungilio]

Originally Posted by Guy Fleegman

It's not your opinions that are offensive. It's your insulting tone. Tossing in the occasional "my friend" doesn't make it any less obnoxious. I've only been on this forum for a few months, but I've observed that most people find a way to disagree without being disagreeable. Not all, obviously.

Sorry if I have offended you in any way.

[LarsOtium]

Originally Posted by scungilio

Sorry if I have offended you in any way.

Well let me say you don't insult me. In fact I want to thank you. Seriously.

After all, you, as a taxpayer, in your own little way, has subsidized the purchase of my 45e. Damn sporting of you.

I think all of us 45e owners should give you a round of applause 👏.

That said, the preaching is getting old. You need some new material.

[scungilio]

Originally Posted by LarsOtium

Well let me say you don't insult me. In fact I want to thank you. Seriously.

After all, you, as a taxpayer, in your own little way, has subsidized the purchase of my 45e. Damn sporting of you.

I think all of us 45e owners should give you a round of applause 👏.

That said, the preaching is getting old. You need some new material.

I salute you. The first guy I've seen who even acknowledges the fact that the $7,500 payment is on the back of the US taxpayer.
Hope you are enjoying your X5 as much as I am enjoying mine.