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7500 EV tax credit update with new bill

Will you continue to purchase without the EV Credit?

  • Yes

    Votes: 7 70.0%
  • No

    Votes: 3 30.0%

  • Total voters
    10

LCIDdreams

Active Member
Joined
Apr 8, 2022
Messages
602
Cars
Lucid Air Pure…eventually
Model Y will get the 7500 credit too. Friend's friend just canceled their 3 and waiting for the bill then getting the Y instead. I'm reconsidering the Y again because like your case the delta might just be too big now for me.
Right now I’m not sure anyone knows for sure which models (by any manufacturer) qualify for the battery materials sourcing requirement or (to a lesser extent) battery assembly requirement. There will likely be many cars that meet the MSRP and North America assembly requirements but only get half the credit, or none of it.
 

Spin Doctor

Member
Joined
Feb 26, 2022
Messages
68
Location
DC / NH
Cars
'20 Model S LR+, '93 968
Did anyone here get any information about converting reservations to order confirmation so we can qualify for the tax credit? I read somewhere here that one company could be doing that but I forgot which one. Fisker?
I got the email from Fisker. I’d love to keep my Lucid order, but unless they offer the same opportunity to keep the tax credit I’ll be driving an Ocean, not an Air.
 

Yugi

Active Member
Joined
Feb 2, 2022
Messages
159
Cars
Lucid Air Touring
I got the email from Fisker. I’d love to keep my Lucid order, but unless they offer the same opportunity to keep the tax credit I’ll be driving an Ocean, not an Air.
How is Fisker eligible? It’s not manufactured/assembled in US, right?
 

noobzilla

Active Member
Verified Owner
Joined
Mar 30, 2022
Messages
918
Location
CA
Cars
Lucid Air Pure 19"
Right now I’m not sure anyone knows for sure which models (by any manufacturer) qualify for the battery materials sourcing requirement or (to a lesser extent) battery assembly requirement. There will likely be many cars that meet the MSRP and North America assembly requirements but only get half the credit, or none of it.
Oh right I forgot about battery sourcing!

I got the email from Fisker. I’d love to keep my Lucid order, but unless they offer the same opportunity to keep the tax credit I’ll be driving an Ocean, not an Air.
I havent done much research but is that Fisker order confirmation non refundable deposit? If it's refundable, which I doubt, I'll consider reserving and confirming soon.
 

SDHacker

Active Member
Verified Owner
Joined
Sep 13, 2021
Messages
759
Location
Escondido
Cars
Red GT
Its not assembled in North America. Hyandai do have factory here but currently only for ICE vehicles. Presumably this will be an incentive for them to accelerate their EV manufacturing in US but I’m sure it will be 2-3 years before they are rolling EVs out of a US (or Canada / Mexico) factory.
Hyundai announced in May that they are building a battery and EV factory in Georgia capable of producing 300K cars. Supposed to be ready in 2025.
 

SDHacker

Active Member
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Joined
Sep 13, 2021
Messages
759
Location
Escondido
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Red GT
How is Fisker eligible? It’s not manufactured/assembled in US, right?
Probably due to the clause that allows someone that contracted to purchase a vehicle in 2022 but didn't take delivery until 2023 to declare it as a 2022 purchase which would allow for application of the credit under current rules (no sourcing or income limit restrictions). People are hoping that making a nonrefundable deposit along with confirmed order wording allows for this.
 

joec

Staff Member
Moderator
Verified Owner
Joined
May 1, 2022
Messages
3,005
Cars
Air Touring
I got the email from Fisker. I’d love to keep my Lucid order, but unless they offer the same opportunity to keep the tax credit I’ll be driving an Ocean, not an Air.
What Fisker promises you and what the IRS concludes in an audit are two different things. I think it rather dumb for Fisker to promise something that will likely not fly when the time comes.
 

joec

Staff Member
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Joined
May 1, 2022
Messages
3,005
Cars
Air Touring
How is Fisker eligible? It’s not manufactured/assembled in US, right?
Fisker won't be eligible under this new law. What they are "promising" is to convert your preorder into a "contract agreement" which could, in theory, make the car eligible under the old law. But I wouldn't count on that actually panning out.
 

HC_79

Active Member
Verified Owner
Joined
Jan 4, 2022
Messages
2,396
Location
Santa Clarita, CA
Cars
2022 Lucid Air GT
I got the email from Fisker. I’d love to keep my Lucid order, but unless they offer the same opportunity to keep the tax credit I’ll be driving an Ocean, not an Air.
Really? You’re going to pay for a car upfront with not ETA on delivery all just to secure a tax credit? Fisker is cash strapped and desperate for money hence them asking reservation holders for non refundable deposits. You want to take that risk for them to never make it to production then by all means go ahead and do it but you’ll lose a lot more than $7500 if they go under before actually delivering.

If they don’t provide a VIN at the time of order confirmation then good luck getting financing from a bank also. I would be very, very cautious giving a startup money when they’re yet to deliver anything.
 

JerseyStrong

Active Member
Joined
Mar 19, 2022
Messages
225
Cars
MKZ Hybrid, Flex, T-Bird
Did anyone here get any information about converting reservations to order confirmation so we can qualify for the tax credit? I read somewhere here that one company could be doing that but I forgot which one. Fisker?
I have raised this issue ow for the second time with my SA. The first time was when the Schumer-Manchin bill was announced. My response was that the legal team was looking into it. I wrote him again after the Senate passed it urging Lucid to allow us to convert reservations to sales agreements before it reaches the President’s desk. Waiting for a response. Have others of you made the same request?

Who knows whether there will be any significant amendments in the House the House to change the current provisions for EV’s. But I doubt it since getting Manchin on board for this and then Sinema were minor miracles. I think there will be a strong push to just get this done as is and get it signed.
 

LCIDdreams

Active Member
Joined
Apr 8, 2022
Messages
602
Cars
Lucid Air Pure…eventually
Really? You’re going to pay for a car upfront with not ETA on delivery all just to secure a tax credit? Fisker is cash strapped and desperate for money hence them asking reservation holders for non refundable deposits. You want to take that risk for them to never make it to production then by all means go ahead and do it but you’ll lose a lot more than $7500 if they go under before actually delivering.

If they don’t provide a VIN at the time of order confirmation then good luck getting financing from a bank also. I would be very, very cautious giving a startup money when they’re yet to deliver anything.
What Fisker are offering is to allow reservation holders that have put down a refundable deposit ($100 - $250) to convert it to a “non-refundable order”.

Once the bill becomes law, as @joec notes, IRS will determine what is meant by the language “a binding purchase order”. An order agreement for a $60,000 car where the penalty for breaking the agreement is only forfeiting a $100-$250 deposit might or might not be deemed to meet the intent of the law.

Of course there is the other issue, that Fisker might not be able to deliver in the end due to insolvency.

 

BradSholl

Active Member
Verified Owner
Joined
Feb 19, 2022
Messages
260
Cars
AGT, M3, Yukon
Seems like the main issue is Fisker Oceans are not made in the US, and therefore, likely ineligible for the tax credit.
 

Yugi

Active Member
Joined
Feb 2, 2022
Messages
159
Cars
Lucid Air Touring
I got a reply from the VP of Sales and told me that they are aware of the situation and coming up with a solution for their customers.
I don’t know if Lucid would offer a solution considering they are having hard time deliverying cars.
 

Tesla2.0

Active Member
Verified Owner
Joined
May 2, 2022
Messages
3,854
Location
Houston, Texas
Cars
Lucid Air Grand Touring
I got the email from Fisker. I’d love to keep my Lucid order, but unless they offer the same opportunity to keep the tax credit I’ll be driving an Ocean, not an Air.
How is Ocean built in Graz, Austria can promise you to get patriotic Federal Tax credit???? Fisker is very low liquid.

Beware of scammer!
 

JerseyStrong

Active Member
Joined
Mar 19, 2022
Messages
225
Cars
MKZ Hybrid, Flex, T-Bird
This string reminds of the folks who will overpay for an item on the internet so they can avoid a smaller sales tax charge! It is 10% of the base MSRP of a grandfathered Pure and a lot less for all other models.
My guess is that for some of us who hold Pure reservations, $7,500 is a more significant cost calculation than for those purchasing the higher end models and was factored into the decision to reserve.
 

Drendino

Active Member
Verified Owner
Joined
Apr 7, 2022
Messages
1,376
Cars
Grand Touring
DE Number
0
This is interesting. I’m sure lucid will figure something out as well.

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DJL

Active Member
Verified Owner
Joined
May 6, 2022
Messages
610
Location
Blaine, WA
Now, if Lucid can on the stick and do the same, they will save and please those who reserved Pures and Tours before they turn elsewhere
 
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