7500 EV tax credit update with new bill

[gunick06]

Is there a text of the income limits to receive the credit? I would like to take a look at that.

The text of the bill is not fun to read, but it’s there. In a nutshell, income is irrelevant if you’re buying a Lucid at the moment bc the price of the car is already too high to qualify when the income AND vehicle price limits go into effect on Jan 1, 2023. If you take delivery this year, there are no limits.

 

[ikonos]

The text of the bill is not fun to read, but it’s there. In a nutshell, income is irrelevant if you’re buying a Lucid at the moment bc the price of the car is already too high to qualify when the income AND vehicle price limits go into effect on Jan 1, 2023. If you take delivery this year, there are no limits.

Thanks for the clarification.

 

[Balin]

US Treasury Issues New Guidelines on EV Tax Credits

US Treasury Issues New Guidelines on EV Tax Credits​

MT NEWSWIRES 1:28 PM ET 12/29/2022

01:28 PM EST, 12/29/2022 (MT Newswires) -- The US Treasury Department said Thursday that starting Jan. 1, electric vehicles leased by consumers can qualify for up to $7,500 in commercial clean vehicle tax credits.

For vehicles under 14,000 pounds, this tax credit would be up to $7,500, 15% of a qualifying vehicle's cost, or 30% if the vehicle is not gas- or diesel-powered, the Department said.

These guidelines were released by the Treasury and the Internal Revenue Service under the Inflation Reduction Act, which was signed into law in August.

In order to qualify, vehicle make or models must have undergone final assembly in North America, and not exceed a manufacturer-suggested retail price of $80,000 for vans, sport utility vehicles, and pickup trucks, and $55,000 for other vehicles, according to the statement.

Both manufacturers and customers can check specific tax credit qualifications on the Treasury's website.

 

[noobzilla]

Link here for FAQ

 

[noobzilla]

Bad news.

Written binding contract before Aug 16, 2022 needs to be delivered before 2023

Source here.

"If you entered a written binding contract to buy a vehicle before August 16, 2022, but took possession on or after August 16, 2022, and before January 1, 2023, you may claim the credit based on the prior rules and disregard the assembly requirement."

 

[Bobby]

Thanks Joe. Good advice. Not sure how to get Lucid to do this! They have been quite clear that the $7,500 would NOT come off the price, but I would be paying cash. It says YOU are a Staff Member. Do YOU work for Lucid? Not sure how to pin LUCID down on this...

Staff member refers to this website, not Lucid corporate.

 

[Bobby]

Is there a text of the income limits to receive the credit? I would like to take a look at that.

There was no limit on the old system.

 

[noobzilla]

Written binding contract before Aug 16, 2022 needs to be delivered before 2023

Source here.

"If you entered a written binding contract to buy a vehicle before August 16, 2022, but took possession on or after August 16, 2022, and before January 1, 2023, you may claim the credit based on the prior rules and disregard the assembly requirement."

edit: turns out this is old information

 

[Bobby]

Bad news. Update provided today by the government.

Written binding contract before Aug 16, 2022 needs to be delivered before 2023

Source here.

"If you entered a written binding contract to buy a vehicle before August 16, 2022, but took possession on or after August 16, 2022, and before January 1, 2023, you may claim the credit based on the prior rules and disregard the assembly requirement."

That guidance is unchanged.

 

[noobzilla]

That guidance is unchanged.

Wait, this is old information?

 

[Bobby]

This thread is quite redundant to several others.

 

[noobzilla]

This thread is quite redundant to several others.

Welp, please delete my thread my then. I thought that's new information

 

[Bobby]

Wait, this is old information?

Yes we have known exactly this for some time now.

 

[Bobby]

Welp, please delete my thread my then. I thought that's new information

I will combine them.

 

[noobzilla]

Yes we have known exactly this for some time now.

Seemed like new information because there's still quite a number of people arguing about what a written binding contract is which is now moot because in the end we need to take delivery by EOY xD

 

[Sid432]

So, what's this then?

Treasury delays new restrictions for electric vehicle tax credits, drawing Manchin’s ire

The Treasury Department and IRS announced on Thursday that they are delaying restrictions on which electric vehicles can be eligible for tax credits under Democrats’ climate and tax bill from earli…

thehill.com

 

[Bobby]

Seemed like new information because there's still quite a number of people arguing about what a written binding contract is which is now moot because in the end we need to take delivery by EOY xD

This thread is 34 pages long. The EOY 2022 guidance has been stated and restated several times.

As moderators, one of our goals is to keep duplication to a minimum on the site. It keeps it tidy and easy to use for folks seeing a thread or topic for the first time. Please review the guidelines for more information.

Forum Guidelines

Welcome to LucidOwners.com! We are a community of current and future Lucid owners as well as enthusiasts. The forum is open to everyone, including Lucid owners, prospective owners, and others. We are here to talk about Lucid vehicles and related topics. Many will share driving impressions...

lucidowners.com

 

[noobzilla]

This thread is 34 pages long. The EOY 2022 guidance has been stated and restated several times.

As moderators, one of our goals is to keep duplication to a minimum on the site. It keeps it tidy and easy to use for folks seeing a thread or topic for the first time. Please review the guidelines for more information.

Forum Guidelines

Welcome to LucidOwners.com! We are a community of current and future Lucid owners as well as enthusiasts. The forum is open to everyone, including Lucid owners, prospective owners, and others. We are here to talk about Lucid vehicles and related topics. Many will share driving impressions...

lucidowners.com

Yes but with so many posts it's easy to miss some critical info. Reading all posts from other threads is like a full time job haha I did notice a sudden rush of folks really pushing hard for EOY delivery but also several people really arguing about binding contract and deposit (I guess Im one of them lol) Are you able to edit the first post? I want to put updates there. I think this case is pretty much closed - EOY delivery or no EV credit.

 

[Sid432]

Can someone please interpret in layman terms?

The Full article here

Who Qualifies​

You may qualify for a credit up to $7,500 under Internal Revenue Code Section 30D if you buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV). The Inflation Reduction Act of 2022 changed the rules for this credit for vehicles purchased from 2023 to 2032.

The credit is available to individuals and their businesses.

To qualify, you must:

• Buy it for your own use, not for resale
• Use it primarily in the U.S.

In addition, your modified adjusted gross income (AGI) may not exceed:

• $300,000 for married couples filing jointly
• $225,000 for heads of households
• $150,000 for all other filers

You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the two years, you can claim the credit.

The credit is nonrefundable, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years.

 

[Bobby]

Can some one please interpet in layman terms?

Here's the current status:
1. Nobody knows exactly how things are interpreted by the IRS until they try.
2. Most tax returns are not audited at all so most people won't even know if it would've been allowed or not. Let your conscience be your guide.
3. The current tax law up through the end of 2022 allows a $7500 deduction for any electric vehicle listed. Currently, the Grand Touring and Dream editions are listed on the IRS website, but the Touring and Pure are no doubt pending. Remember, the Lucid Air is the model and the Dream, Touring, etc. are variants. While they are vastly different to folks here on the board, I would imagine that they will be lumped together in the eyes of the tax code.
4. The current tax deduction does not restrict based on the price of the vehicle. It goes against overall tax burden for 2022.
5. The current guidance suggests that the vehicle will have needed to be put into service by the end of 2022. Having a signed contract without the vehicle in service does not count.
6. The new tax law that takes effect on New Year's Day is much more difficult to interpret. There a guidance is based on country of origin, the union level of the factory employees, price of the vehicle, income level, and other factors. Over time this will need to be interpreted. We have a year to do that. As it stands, no Lucid vehicles will qualify because of the $50,000 cap on sedans.
7. Individual states may have additional programs. California has one, but it is strictly income-tied.

TL;DR: if you bought and received a Lucid this year, go ahead and take the $7500. This is the advice of my accountant.

NOTE: this is not tax of financial advice. I am not a tax professional. And, I'm not very smart. You are on your own, these are purely my opinions.