$7500 Tax Credit

[SaratogaLefty]

Does anyone know why the Lucid Air Dream Edition is not currently listed on the government’s site showing all EV’s currently eligible for the $7500 tax rebate? I know it may get changed if the BBB bill passes but that won’t be effective until 1/1/22 at the earliest so deliveries this year should qualify but not unless the car is on the approved list. Perhaps Lucid hasn’t gotten around to submitting the necessary paperwork??

 

[Lucken]

I agree, under the current bill the Lucid should definitely qualify. If there is necessary paperwork that Lucid hasn’t submitted, your credit could be rejected by the IRS when you file your returns. There have even been a few Audi e-Tron owners who have had IRS rejections and subsequent back & forth discussions until their submissions were eventually accepted. Fortunately I haven’t had that issue with my previous EVs and I hope I’ll have no issue this year with my current e-Tron.

You may want to speak to Lucid. There’s probably a simple answer.

 

[Victor Osaka]

A lot to consider. Remember, the new tax incentive states the vehicle must be built by union factory workers.

 

[Lucken]

A lot to consider. Remember, the new tax incentive states the vehicle must be built by union factory workers.

Actually that's only to get the additional incentive. Non-union cars will get a tax credit too, but just less than the union version. I hope the Senate does some significant rewrites to this bill because as it stands now, it won't be good for luxury EV sedan buyers.

 

[manitou202]

The biggest concern right now is the $55k MSRP limit for sedans. That would disqualify any Lucid Air from the $7500 credit. Even if they raise the sedan limit to match the SUV/Truck limit of $80k MSRP, that would still exclude everything except for a base Air Pure. So it isn't looking good either way unless they remove the MSRP cap.

But to be honest, for any of us buying a $100k+ car, I doubt it would make you consider something else. Any other EV in the same price range wouldn't qualify. So you are down to gas powered competitors, or EV's under the MSRP cap.

 

[SaratogaLefty]

So I sent an email to Lucid asking why the Dream Edition is not listed on the government EV approved website. No answer yet. I doubt the BBB will be passed before year end so still a good chance to get the full rebate for 2022 because once the BBB is passed (if ever) it won't be retroactive to 1/1/22. Rather it will take effect on date of passage. So assuming my car (or yours) gets delivered before the BBB passes, you will still qualify for the $7500 tax rebate when you file your 2022 tax return. I'm still hoping for delivery this year, but time is running out.

 

[dawktah LucidGT]

I wish I knew someone in Congress. BBB has chargers in it, but does it say they have to be maintained AND WORK?!?!?

 

[Paladin732]

So I sent an email to Lucid asking why the Dream Edition is not listed on the government EV approved website. No answer yet. I doubt the BBB will be passed before year end so still a good chance to get the full rebate for 2022 because once the BBB is passed (if ever) it won't be retroactive to 1/1/22. Rather it will take effect on date of passage. So assuming my car (or yours) gets delivered before the BBB passes, you will still qualify for the $7500 tax rebate when you file your 2022 tax return. I'm still hoping for delivery this year, but time is running out.

That is not gaurenteed.

They can do whatever they want for effective date.

For instance, in the last bill passed they gutted QSBS and backdated it like three months.

 

[Lucken]

That is not gaurenteed.

They can do whatever they want for effective date.

For instance, in the last bill passed they gutted QSBS and backdated it like three months.

That was my understanding too in terms of the bill’s effective date. You’re at the mercy of clueless politicians and that’s not a good place to be.

 

[Paladin732]

That was my understanding too in terms of the bill’s effective date. You’re at the mercy of clueless politicians and that’s not a good place to be.

Of course talk to your accountant, but this is what my accountant and financial planner both told me.

 

[Neurio]

My accountant said the same, unfortunately.

 

[SaratogaLefty]

Yes originally they did say it would be bacdated to 1/1/22, however, I understand as currently written and passed by the House (subject of course to Senate rewrites) it now says if they pass it this year then it will be effective 1/1/22, but if they pass it next year it will be effective on the date it is signed by the President. Maybe my understanding is incorrect; in any case, that is why I'm hoping I receive my car this year. Still no answer from Lucid as to why the Dream (and Grand Touring) are not currently listed on the approved EV Government website!!

 

[9barsleft]

It does suck that they even lose the 200k cap..

 

[dawktah LucidGT]

How many people are only buying because of rebate?

 

[9barsleft]

How many people are only buying because of rebate?

I have pure and touring reservations. It might be enough to tilt me to other alternatives like Nissan Ariya. It’s a totally different car and I’m going to decide after test driving both.

 

[Sandvinsd]

How many people are only buying because of rebate?

No. But I’ll take the $7500 and it would be a bummer if they got rid of it. The $7500 could fund a nice little trip in the Air.

 

[hmp10]

How many people are only buying because of rebate?

I doubt if many Lucid buyers are. However, I have friends and family members for whom buying a car takes a much bigger proportional bite out of their finances and need the tax credit to justify -- or even afford -- the price of an EV with decent range over an equivalent ICE vehicle.

 

[dawktah LucidGT]

Currently there is no MSRP limit. There is a cap of 200k vehicles total for each OEM. So Tesla and GM both have sold over 200k EVs in the US and no longer qualify.

The proposed law removes the 200k vehicle cap (which allows GM and Tesla to qualify again), but places a MSRP limit for sedans and Trucks/SUVs. Sedans are capped at $55k and Trucks/SUVs at $80k. So if the vehicle price is above those limits you completely lose the $7500 credit.

Pulled this from another thread. This may not be "Congress'" fault. Seems like Tesla and GM cried foul and lobbyist rule.

 

[Lucken]

Pulled this from another thread. This may not be "Congress'" fault. Seems like Tesla and GM cried foul and lobbyist rule.

Ultimately the laws are still promulgated by Congress. They can still say ‘no’ to the lobbyists. If they’re a bunch of wimps (which they are), then they cave to the lobbyists each and every time. But nothing becomes law until Congress says so.

If the new law goes into effect as is, I‘ll lose the credit with either car I’m considering, but it won’t dissuade me from a purchase. I’ll just be pissed, but I can still vote next year.

 

[dawktah LucidGT]

Ultimately the laws are still promulgated by Congress. They can still say ‘no’ to the lobbyists. If they’re a bunch of wimps (which they are), then they cave to the lobbyists each and every time. But nothing becomes law until Congress says so.

I spent 4 years in D.C. while in residency. Say no to lobbyists, really?