[TAB]

"Federal tax credit for EVs maintained at $7,500
Eliminates tax credit cap after automakers hit 200,000 EVs sold, making GM and Tesla once again eligible
The language in the bill indicates that the tax credit would be implemented at the point of sale instead of on taxes.
In order to get the full credit, the electric vehicle needs to be assembled in North America, the majority of battery components need to come from North America, and contain a certain percentage of minerals from countries with free trade agreements with the US.
A new federal tax credit of $4,000 for used EVs
Zero-emission vans, SUVs, and trucks with MSRPs up to $80,000 qualify.
Electric sedans priced up to $55,000 MSRP qualify.
The full EV tax credit will be available to individuals reporting adjusted gross incomes of $150,000 or less, $300,000 for joint filers"

So we are losing the 7500 credit (if applies to 2022 tax year), since msrp is over 80k.

 

[TexasBryan]

There is an allowance for a transition period if you enter into a "written binding contract to purchase" prior to Dec 31, 2022, than the current tax credits still apply.

 

[ace008]

What is required to show this written binding contract to purchase? I have a vehicle inquire report showing the specs of my order and the receipt for the $1000 order deposit.

Found the verbage on the new bill here:
(l) TRANSITION RULE.—Solely for purposes of the 21 application of section 30D of the Internal Revenue Code 22 of 1986, in the case of a taxpayer that— 23 (1) after December 31, 2021, and before the 24 date of enactment of this Act, purchased, or entered 25 into a written binding contract to purchase, a new 387 ERN22335 9K1 S.L.C. 1 qualified plug-in electric drive motor vehicle (as de2 fined in section 30D(d)(1) of the Internal Revenue 3 Code of 1986, as in effect on the day before the date 4 of enactment of this Act), and 5 (2) placed such vehicle in service on or after the 6 date of enactment of this Act, 7 such taxpayer may elect (at such time, and in such form 8 and manner, as the Secretary of the Treasury, or the Sec9 retary’s delegate, may prescribe) to treat such vehicle as 10 having been placed in service on the day before the date 11 of enactment of this Act.

 

[TexasBryan]

I don't think a $1,000 deposit is enough. That deposit only giver you the ability to place an order if/when your dealer has a build-allocation available. Even then, I don't know if you the purchase is binding when it arrives at the dealership as some people are purchasing orders that someone else declined to follow-through with.

I inquired with a couple of BMW dealerships this morning and they had not heard anything about it. BMW got out-lobbied by Tesla and the other US manufacturers on this one.

 

[TAB]

"For US federal tax purposes, the enactment date is most often the date the President signs the bill into law. "

Where did the 12/31/22 come from? You may only have until it's signed.

 

[TexasBryan]

I read that date is some on-line article, but that is even worse.

 

[saran]

Transition provision for EVs with written sales orders dated in 2022 prior to the date of President signing the bill but delivered in 2023 allows purchaser to claim the “old” credit in 2023. (Page 386, line 20).

 

[LAKHAAB]

would the old rules still apply if a binding sales contracts is signed before Biden signs the new law and the car is delivered in 2022? I believe, yes. But not certain. I also saw that there is some uncertainties/ambiguities amongst auto manufacturers as to what’s meant by “US content” in the batteries. So I believe it might take some time before these get clarified and the new law is passed and signed by the president.

 

[TAB]

As an update to this, Fisker is offering purchase contracts to US customers to fit under the transition rule. If this matters to you, and enough people request it, we could get BMW to do this for upcoming deliveries.

 

[ace008]

Looks like senate just passed this bill. Should we call our dealerships to give us purchase contracts to fit this bill?

 

[hilld]

There is some uncertainty regarding the enactment date and the immediate requirement of American assembly. Depending on who you talk to it is possible that cars not made the the US might not qualify. It would be nice to have a lawyer read the actual language of the bill and provide an opinion here. My car is still stuck in Oxnard and has been for 39 days now. The house goes back into session on Friday the 14th and is expected to pass the bill at that time. Biden is expected to sign it shortly after. If I lose my tax credit due to the car sitting in Oxnard all this time, I will be pissed.

 

[LAKHAAB]

There is some uncertainty regarding the enactment date and the immediate requirement of American assembly. Depending on who you talk to it is possible that cars not made the the US might not qualify. It would be nice to have a lawyer read the actual language of the bill and provide an opinion here. My car is still stuck in Oxnard and has been for 39 days now. The house goes back into session on Friday the 14th and is expected to pass the bill at that time. Biden is expected to sign it shortly after. If I lose my tax credit due to the car sitting in Oxnard all this time, I will be pissed.

I am not a lawyer but I understand that if you sign a formal binding contract to purchase your car including finalizing the financing, you should be able to claim the credit for your IX in your 2022 tax return under the existing law. This will need to happen before Biden signs the final bill which still needs to pass the House of Representatives which is quite likely to happen as Dems have a majority there. Again I am not a lawyer but that’s what I have done with my IX purchase. To clarify, in my case the car has already left the port and is sitting at the dealership but I am not able to take delivery for a few more weeks because of overseas travel.

 

[Paladin1]

I have a separate thread started on this, but the final bill was amended - with the provision that it takes effect immediately when signed (actually the day before) for cars whose final assembly is not in the US. That date according to sources will be 13 August 2022. That means EVs purchased next week (purchase order, binding contract, actual sale, whatever) that are not assembled in the US will not be eligible for a tax credit.

 

[hilld]

Did you get yours yet? Mine is still at the port.

 

[Paladin1]

Did you get yours yet? Mine is still at the port.

Actually out today (I hope) to the detailer, projected delivery before the end of the week. There's a transition clause in the bill which I've just skimmed (I'm not a lawyer) that might provide relief for cars ordered (verifiably) prior to the bill's signing, but I can't confirm. The whole amendment:

https://www.democrats.senate.gov/imo/media/doc/inflation_reduction_act_of_2022.pdf

 

[hilld]

Actually out today (I hope) to the detailer, projected delivery before the end of the week.

So jelly. I wish mine would ship so I could get it by Friday and avoid any ambiguity with the new EV bill.

 

[ace008]

Just confirmed with my dealer that they cannot put anything in a contract if the car is not on the lot. Now debating if we should stick with the iX as its effective price will be $7500 more. This was supposed to replace a model Y.

 

[Electric Sloth]

Just confirmed with my dealer that they cannot put anything in a contract if the car is not on the lot. Now debating if we should stick with the iX as its effective price will be $7500 more. This was supposed to replace a model Y.

I'm in a similar situation. Dealer confirmed they won't do the contract until they have the car on the lot, which won't happen for a few more weeks at best. This may get me to change my mind and wait a few more years.

 

[TAB]

Just confirmed with my dealer that they cannot put anything in a contract if the car is not on the lot. Now debating if we should stick with the iX as its effective price will be $7500 more. This was supposed to replace a model Y.

That's just that dealer being difficult. Some dealers have been doing the paperwork, trades, and even registering the tbd cars (for i4s and ixs) this week. They can if they want.

 

[LAKHAAB]

There is an allowance for a transition period if you enter into a "written binding contract to purchase" prior to Dec 31, 2022, than the current tax credits still apply.

here is what I found on another website;
The upshot of all this is:

• If you have a signed purchase order or sign one before Biden signs the bill (i.e., this week) and then have to wait for delivery of an EV assembled outside of North America, you can still qualify for the current credit.