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7500 EV tax credit update with new bill

HariK

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I too think that the tax credit is not a deal breaker for those interested even in the cheapest Lucid. Even without the tax credit 7.5k and higher price, I think Lucid Air Pure fully loaded will challenge the non plaid long range Model S just fine. The problem is execution for Lucid. On top of it, lowering the 2022 target from 20k to 12k to 6k basically meant loss of credibility on top of lack of transparency. They did not disclose how many GT and T and Pure reservations are on the books and how many cancelled already due to the delay. I decided that my 2nd EV can be a smaller SUV and reserved Fisker Ocean Ultra which I may get as early as Q1 23. I have a reservation for fully loaded Pure which at the current slow pace may well take until Q2 23. If Air Pure AWD and loaded does not ship even in Q2 23, I wonder how many of us will look at other choices.
 

noobzilla

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I too think that the tax credit is not a deal breaker for those interested even in the cheapest Lucid. Even without the tax credit 7.5k and higher price, I think Lucid Air Pure fully loaded will challenge the non plaid long range Model S just fine. The problem is execution for Lucid. On top of it, lowering the 2022 target from 20k to 12k to 6k basically meant loss of credibility on top of lack of transparency. They did not disclose how many GT and T and Pure reservations are on the books and how many cancelled already due to the delay. I decided that my 2nd EV can be a smaller SUV and reserved Fisker Ocean Ultra which I may get as early as Q1 23. I have a reservation for fully loaded Pure which at the current slow pace may well take until Q2 23. If Air Pure AWD and loaded does not ship even in Q2 23, I wonder how many of us will look at other choices.
Thanks for mentioning the Fisker. Something I could check as potential alternative. Won't receive 7500 credit though but I wonder if the higher trims that's expected to ship 2022 could get it (if confirming order before bill passes)
 

noobzilla

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Fisker Ocean wouldn't quality for the new tax credit as its made in Austria, by the same folks that make the Mercedes G wagon, Toyota supra and BMW 5 series. The $5,000 non-refundable deposit is only for the first 5,000 special edition cars. I actually paid it. The rest will be much lower. Was looking to get a Tesla as a second car, but was thoroughly disappointed after the test drive. Delivery date for US Ocean Ones is Q1 2023, so I suppose you could say that its in sight.
5k non refundable I wonder if thats considered as confirmed order? Since car isnt released yet but if confirmed ordered before new ev bill would it qualify for tax credit?
 

noobzilla

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stratus

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I honestly do not think the tax credit or lack of it will dissuade that many people. There is always a lot of complaining , but in my opinion , people will buy the car they want, regardless of the extra perk. Look at Tesla, still selling like hotcakes.
I have to admit, I think the cap on the price of a vehicle for a credit is stupid , but that is the only way they would get the bill through. An EV is a good thing no matter the price.
Without delving too much into what some folks consider sensitive political issues, there seems to be an abundance of good things in that bill that directly address climate change and renewables. This is incredibly important and I am personally thankful for that. Sure the lack of a tax credit will be disappointing to some, but maybe it will open the door for others? Who knows. Plus, the distinguished senator from Arizona may kill the entire thing.🤣🤣
 

misanoblue

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Fisker stated in their earnings call yesterday that if the legislation passes as drafted, they have a plan to convert reservations to "orders" so all reservation holders could get the tax credit. Hopefully, Lucid will do the same thing.
 

joec

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Looks like they struck a deal with Sinema. And none of the EV stuff was changed. Instead, she wanted the carried interest loophole kept open, and some extra money for drought funding. (The second one certainly makes sense for Arizona.)

They plan to vote by Saturday. My guess is the President will sign next week. So bye bye tax credit.
 

LCIDdreams

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Fisker stated in their earnings call yesterday that if the legislation passes as drafted, they have a plan to convert reservations to "orders" so all reservation holders could get the tax credit. Hopefully, Lucid will do the same thing.
They may have to act extremely quickly!
 

idiot900

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Touring (confirmed 8/22)
If we enter into a "written binding contract" to buy the car before the Inflation Reduction Act is enacted, we can still get the $7500 tax credit. So it seems like most of us are out of luck unless Lucid acts very quickly to do what Fisker is doing. I'll be glad to enter into a "written binding contract" for my Touring reservation if Lucid offers.

At least that is my lay reading - perhaps one of the lawyers here can comment:

(l) TRANSITION RULE.—Solely for purposes of the application of section 30D of the Internal Revenue Code of 1986, in the case of a taxpayer that— (1) after December 31, 2021, and before the date of enactment of this Act, purchased, or entered into a written binding contract to purchase, a new qualified plug-in electric drive motor vehicle (as defined in section 30D(d)(1) of the Internal Revenue Code of 1986, as in effect on the day before the date of enactment of this Act), and (2) placed such vehicle in service on or after the date of enactment of this Act, such taxpayer may elect (at such time, and in such form and manner, as the Secretary of the Treasury, or the Secretary’s delegate, may prescribe) to treat such vehicle as having been placed in service on the day before the date of enactment of this Act.

https://www.democrats.senate.gov/imo/media/doc/inflation_reduction_act_of_2022.pdf (page 386)
 

Ksa23

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We've got 5 months left of the year, if Lucid doesn't provide us with written agreements by the end of the year, it wont be because they couldn't act quickly.
 

idiot900

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If the Act is considered “enacted” the moment Biden signs it, we may have considerably less than 5 months.
 

Ksa23

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If the Act is considered “enacted” the moment Biden signs it, we may have considerably less than 5 months.
If thats the case then we have 1 month max.. more like 2 to 3 weeks.
 

Steveinarizona

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If thats the case then we have 1 month max.. more like 2 to 3 weeks.
"enacted" generally means when it is passed by the legislative body and signed by the executive. "Effective" would represent a determined start date. For example, Congress might pass a tax bill in June but want it to be effective at the start of the calendar year. So the enacted date would be in June but the effective date would be January 1.
 

joec

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"enacted" generally means when it is passed by the legislative body and signed by the executive. "Effective" would represent a determined start date. For example, Congress might pass a tax bill in June but want it to be effective at the start of the calendar year. So the enacted date would be in June but the effective date would be January 1.
But I'm pretty sure the effective date has been set in this bill to "The date the bill is signed by the President." Which could be as soon as next week.
 

idiot900

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Although, on page 385:
EFFECTIVE DATES.— (1) IN GENERAL.—Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this section shall apply to vehicles placed in service after December 31, 2022.
So, if the Act is passed in a few weeks, to get the tax credit you must either:

1. Take delivery before 12/31/2022, or
2. Sign a "binding contract" to buy the car before Biden signs the bill

So hypothetically, if the Act is passed in the next few weeks and you buy the car on 12/30/2022 but receive it on 1/1/2023, you're out of luck, as far as I (not a lawyer) can tell.
 

stratus

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Looks like they struck a deal with Sinema. And none of the EV stuff was changed. Instead, she wanted the carried interest loophole kept open, and some extra money for drought funding. (The second one certainly makes sense for Arizona.)

They plan to vote by Saturday. My guess is the President will sign next week. So bye bye tax credit.
Looks like they struck a deal with Sinema. And none of the EV stuff was changed. Instead, she wanted the carried interest loophole kept open, and some extra money for drought funding. (The second one certainly makes sense for Arizona.)

They plan to vote by Saturday. My guess is the President will sign next week. So bye bye tax credit.
The bill has a lot of great climate provisions. Sucks to potentially lose
Although, on page 385:

So, if the Act is passed in a few weeks, to get the tax credit you must either:

1. Take delivery before 12/31/2022, or
2. Sign a "binding contract" to buy the car before Biden signs the bill

So hypothetically, if the Act is passed in the next few weeks and you buy the car on 12/30/2022 but receive it on 1/1/2023, you're out of luck, as far as I (not a lawyer) can tell.
This is actually page 385 of the bill?

That’s amazing detective work. You need to change your forum name!!!🤣🤣🤣
 

njg-agt

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If we enter into a "written binding contract" to buy the car before the Inflation Reduction Act is enacted, we can still get the $7500 tax credit. So it seems like most of us are out of luck unless Lucid acts very quickly to do what Fisker is doing. I'll be glad to enter into a "written binding contract" for my Touring reservation if Lucid offers.

At least that is my lay reading - perhaps one of the lawyers here can comment:
Not a lawyer, but as I read my Lucid Order's T&C it sure looks to me like a written biding contract... they produce a car, I buy it or I lose my deposit.
 

Ksa23

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Not a lawyer, but as I read my Lucid Order's T&C it sure looks to me like a written biding contract... they produce a car, I buy it or I lose my deposit.
I was thinking the same.. that anyone who has confirmed and committed their deposit has already signed the necessary contract to be eligible for the old $7500 credit.
 

LCIDdreams

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Not a lawyer, but as I read my Lucid Order's T&C it sure looks to me like a written biding contract... they produce a car, I buy it or I lose my deposit.
Not a lawyer either but wondering if Lucid, Fisker (or anyone else) could simply introduce a non-refundable small deposit (like $200) for reservations that are still way out there (not expecting to receive a car for 6 months or way more), and be in compliance with this provision.
 
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