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IRS weighs in on tax rebate, mostly bad news for Model Y

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Looking at the list, it seems clear to me they are using some undoubtedly complicated formula to establish eligibility at the $80k level.

I suspect variables likely include things like passenger capacity, drivetrain configuration, ground clearance, towing capacity, cargo capacity, etc etc, and you have to check some number of the possible boxes to qualify.

Stabbing in the dark I’d guess the 7 seat MY qualifies as a “van” due to passenger capacity but the 5 seat MY variants and MME are somehow missing the mark for “SUV” for reasons TBD.
Let's try to figure this out. There classifications seem random and cars are missing.

SUV/Van
Audi Q5 PHEV 5 Seat
Chrysler Pacifica PHEV Minivan
Jeep GC PHEV 5 Seat
Jeep Wrangler PHEV 5 Seat
Tesla Model Y AWD 7 Seat
Rivian R1S 5/7 Seat
Rivian R1T 5 Seat
VW ID.4 AWD 5 Seat

Car
Mustang Mach E 5 Seat (no itemization of RWD/AWD, Battery Ranges)
Nissan Leaf 5 Seat Wagon
Tesla Model 3 RWD/AWD 5 Seat
Tesla Model Y AWD 5 Seat
Volvo S60 PHEV, etc 5 Seat
VW ID.4 RWD 5 Seat
 
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And the ID.4???????????
(b) An automobile capable of off-highway operation, as indicated by the fact that it:


(1)
(i) Has 4-wheel drive; or
(ii) Is rated at more than 6,000 pounds gross vehicle weight; and
(2) Has at least four of the following characteristics calculated when the automobile is at curb weight, on a level surface, with the front wheels parallel to the automobile's longitudinal centerline, and the tires inflated to the manufacturer's recommended pressure -

(i) Approach angle of not less than 28 degrees.
(ii) Breakover angle of not less than 14 degrees.
(iii) Departure angle of not less than 20 degrees.
(iv) Running clearance of not less than 20 centimeters.
(v) Front and rear axle clearances of not less than 18 centimeters each.
 
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(b) An automobile capable of off-highway operation, as indicated by the fact that it:


(1)
(i) Has 4-wheel drive; or
(ii) Is rated at more than 6,000 pounds gross vehicle weight; and
(2) Has at least four of the following characteristics calculated when the automobile is at curb weight, on a level surface, with the front wheels parallel to the automobile's longitudinal centerline, and the tires inflated to the manufacturer's recommended pressure -

(i) Approach angle of not less than 28 degrees.
(ii) Breakover angle of not less than 14 degrees.
(iii) Departure angle of not less than 20 degrees.
(iv) Running clearance of not less than 20 centimeters.
(v) Front and rear axle clearances of not less than 18 centimeters each.
It is not eligible:

It does not have 4WD.

OR

It is not over 6,000 lbs (4,927 lbs).

AND 4:

NO 18.7 deg (i) Approach angle of not less than 28 degrees.
18.3 deg (ii) Breakover angle of not less than 14 degrees.
20.2 deg (iii) Departure angle of not less than 20 degrees.
NO 17.2 cm (iv) Running clearance of not less than 20 centimeters.
Dunno (v) Front and rear axle clearances of not less than 18 centimeters each.

See here:
2022 Volkswagen ID.4 Technical Specificationshttps://www.vwidtalk.com › attachments › id4-vw...
 
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ID.4 and MME don’t have 7 seat options.

The real key to unlocking this, IMO, is to figure out why a 5 seat AWD Model Y is a “car” while the 5 seat AWD ID.4 is apparently an “SUV”.

I don’t have the answer for that.
Totally agree. Also, what about the Audi Q5 PHEV being an SUV?

This is why I think it is a typo. They are all SUVs. Car is a car, SUV is an SUV. They are very clearly identified (besides Hyundai/Kia/Genesis E-GMP EVs called SUVs but they are hatchbacks).
 
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There is no meaningful regulatory distinction between 4WD and AWD. They are the same.

But I agree, it certainly fails the test on the other criteria.
Well there is a distinction mechanically. 4WD is not used all the time, or at high speeds. It has a transfer case and an extra shifter to engage. It is not based on a clutchpack, viscous coupling or planetary gears. Most SUVs are not 4WD, they are AWD. Wrangler, 4Runner, Jimny, Trucks, have 4WD.

The point is, the definition of a Non-Passenger Automobile is not referring to consumer vehicles. They are talking about buses, campers and special off roading equipment. Not a Subaru Outback or Ford Escape. They mean a Unimog or maybe a Hummer H1 (not the H2/3), lol.
 
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Let's see - the MY 5 seater is a car that becomes an SUV when you add 2 more seats. Only Washington could come with something so ridiculous. Nothing new though, government has been distorting the automobile market since LBJ rolled out the chicken tax in 1964.
 
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Even better,
Now I'm glad I did not reject the Vin and took delivery with the $3750 credit. that is the most i would have qualified for if the MY Battery meets the requirements

I have to wonder if Tesla will soon bring the MY base price to under the $55K limit
and you got the cash discount NOW.
if you had passed on the offer and waited for delivery in 2023, you would be waiting ONE YEAR for a TAX CREDIT, worth maybe half that in actual cash tax savings.

those who took the 7500 plus 10,000 free SuperCharger miles made out like bandits.
and so many people were boo-hooing about missing out on the tax credits...... ;-)