Sorry it sounded like you have an urgent situation that you personally want your Touring to be upgraded and delivered before end of 2022 and was frustrated that you cant.
OK sorry if you took offence at my previous comment. I am currently getting an MBA and have had several arguments about exactly what you are talking about with a professor recently.
Yeah sorry if I seemed a bit short in my response. I actually took your advice and reached out to my DA/SA whatever they are. Will post if I get any response.
The problem with this is you are assuming that if you take them up on this offer, they can DEFINITELY produce a GT for you by the end of the year. They can’t guarantee that. If they could, they could also guarantee your Touring by year’s end.
Unless the IRS specifically says 5% non-refundable is required, I'm claiming the credit. I had a "written binding contract." If the IRS wants to audit me, and tell me their definition is different based on their general guidance, thats fine. My interpretation of written binding contract is the same as Lucid's. I partially purchased my Lucid before the law passed, so I should be grandfathered.
That’s fine, so long as the audit doesn’t uncover any other possible “errors” you’ve made on your returns in the past seven years.
My taxes are pretty boring. I'm not concerned. If they insist on undoing the credit, thats fine.
The IRS example is what they call a "Safe Harbor" example. In other words, if your liquidated damages clause is for 5% or more, they will consider your contract as a "binding written contract". The further away you are from that value, the more you expose yourself to a contrary ruling by the IRS and the more exposure you have to fines and penalties if audited. While, technically, you are correct in stating that the IRS could issue further guidance on this subject, you should know that they have been relying on this definition and their 5% safe harbor value for over 20 years in numerous cases. With that said, I sure hope you are correct that they will revisit their guidance and lower their safe habor value to be less than .07% (i.e., $1,000/$139,000). I am not sure what would motivate them to do that, but who knows.Stop spreading FUD.
The order confirmation for your Lucid Air is considered a written binding agreement under the Transition Rule, there is no specific percentage (IRS only uses 5% as a general example, but it is not limited to at least that) as long as the order converts your reservation deposit into a non-refundable order deposit.
The only change on August 16, 2022 when the bill was passed is that EVs that qualify for any EV tax credit under the old or new rule must have final assembly in North America as per the Final Assembly Requirement. This has no effect on Lucid Airs since Lucid Air is already assembled in USA. See here if you don't believe me on which cars qualify.
Additionally, you can technically still confirm your Lucid Air until December 31, 2022 and qualify for the old EV tax credit rule under the Transition Rule.
Even if so, the IRS will be conducting future guidance on how to manuever this transitory period between the old and new EV tax credit rules, which means in the following weeks, they will be fielding surveys to see what qualifies and doesn't qualify as they themselves don't know just yet. Rivian, Fisker, Nissan, Toyota, Kia and Volkswagen have all sent out very similiar options to reservation holders in an attempt to qualify them for the old EV tax credits under the Transition Rule either prior to August 16 or January 1. Tens to hundreds of thousands of reservation holders on top of most automakers will be likely be prodding the IRS to qualify these as written binding agreements.
Lastly, if in the following weeks the IRS updates specifically details that all written binding agreements must require at least 5% deposit or down payment, Lucid still has until December 31, 2022 to request 5% deposit from reservation holders that already confirmed their orders in order to qualify for this stipulation.
Use this site from IRS to read the full info:
Credits for new electric vehicles purchased in 2022 or before | Internal Revenue Service
If you bought or leased a new, qualified plug-in electric vehicle (EV) in 2022 or before, you may be eligible for a clean vehicle tax credit up to $7,500 under IRC 30D.www.irs.gov
No,. The liquidated damages clause is in my confirmation purchase agreement. It is in Aricle 3, which is entitled: "Order Process - Cancellation" My deposit of $1,000 is only 0.07% of the contracted amount and, as such, does not meet the IRS' safe harbor value of 5% inorder to meet their definition of a "binding written contract". See my posting at: https://lucidowners.com/threads/7500-ev-tax-credit-update-with-new-bill.2120/page-21#post-56321 for more info.
I am, at its original price, which was locked it before the increase.
Can you show me where in the new law it says that. I have difficulty in finding it. Sure hope you are right and I look forward to reading it. Thanks.
Just to be clear, you are saying that under this clause, while the confirmation purchase agreement I currently have does not qualify as a "binding written contract" because it does not meet the 5% safe harbor criteria the IRS has set, if I receive and sign the final buy/sale agreement and take possession of the car before Jan. 1, I will still qualify for the tax credit?Credits for new electric vehicles purchased in 2022 or before | Internal Revenue Service
If you bought or leased a new, qualified plug-in electric vehicle (EV) in 2022 or before, you may be eligible for a clean vehicle tax credit up to $7,500 under IRC 30D.
View attachment 4124
I appreciate you taking the time to share this thought with me However, I believe the transition rule applies to those "binding written agreements" written before the enactment of the legislation and for vehicles received after it, including this year. I.e.: "If you entered into a written binding contract to purchase a new qualifying electric vehicle before August 16, 2022, but do not take possession of the vehicle until on or after August 16, 2022 (for example, because the vehicle has not been delivered), you may claim the EV credit based on the rules that were in effect before August 16, 2022. The final assembly requirement does not apply before August 16, 2022.
