Have we confirmed no rebate for Pure?

[n8236]

Hey y'all,

Seeing conflicted info on the 7.5k fed rebate for the Pure. Do we have any level of certainty it won't apply to the Pure?

 

[AIR.LUCID]

Yes

 

[changinator]

No

 

[NanoGauntlet]

​ Get your Lucid Air. And your tax credit. This past weekend, the Senate passed the Inflation Reduction Act, which eliminates the $7,500 tax credit for sedans with an MSRP over $55,000. This means that if the bill is enacted, Lucid Air will no longer qualify for this tax credit. The House is expected to vote on the bill this Friday, August 12. Many of you have asked what we can do to help you maintain your eligibility for this tax credit.* The current text of the bill includes a “transition rule,” which may maintain eligibility for Lucid customers who enter into a contract to purchase their Lucid Air before the bill is signed. We’ve decided to help reservation holders take advantage of the transition rule by opening a window to place an order for their Lucid Air. This window is now open, and will remain so until 12 a.m. the morning the bill is passed, which could be as soon as this Friday. To be completely clear, you don’t have to place an order now and your reservation will remain in place — we’re doing this to help those who want to do everything possible to maintain eligibility for the federal tax credit. If you don’t wish to place an order now, you’ll still have the opportunity to do so closer to your vehicle’s production date. Please note that placing an order now will not alter the expected delivery timelines for Touring and Pure. However, if you decide to place an order now, please understand you’ll be entering into a contract, and your deposit will become non-refundable. To place your order, log into your Lucid account, go to your “Designs and Orders” tab, identify the relevant reservation and click the “Order” button. A pop-up window will appear where you can again click “Confirm this order” to complete the process. Order your Air As always, thanks for dreaming ahead with us. The Lucid Team Here to help. Our team is here for any outstanding questions you have. Reach us at [email protected] or +1 844 367 7787. * Please consult your tax, legal or financial advisor regarding your eligibility for federal tax credits as well as any additional state or local incentives that may be available. Lucid cannot provide tax, legal or financial advice. Visit our site Update preferences / Unsubscribe Privacy Policy Lucid Motors USA, Inc. 7373 Gateway Boulevard, Newark, CA 94560 USA

If you did this then "yes" you can apply for the tax credit.

 

[NanoGauntlet]

So some news articles that came out during the tax law signing did still list Lucid as getting the credit till the end of the year and then next year no because of being over the price cap.

 

[Mr_rhythm]

Correct - any orders already placed (prior to bill signing) that are delivered this year are a non-issue, they will get the tax credit. Orders confirmed before bill signing but not delivered till a subsequent year (anything other than 2022) get iffy because of the 5% language the IRS put out. One can hope and see if their tax advisor signs off. There is also the possibility (though an outside bet) of placing a larger non-refundable deposit (5% of the value of the car) at the time you confirm your VIN with Lucid. That can get you up to the 5% threshold before the vehicle is delivered, and still be part of the original binding written contract that was signed before the bill took effect. Methinks that could be viable, but I haven't checked with Lucid yet to see if they'll do it.

 

[changinator]

Correct - any orders already placed (prior to bill signing) that are delivered this year are a non-issue, they will get the tax credit. Orders confirmed before bill signing but not delivered till a subsequent year (anything other than 2022) get iffy because of the 5% language the IRS put out. One can hope and see if their tax advisor signs off. There is also the possibility (though an outside bet) of placing a larger non-refundable deposit (5% of the value of the car) at the time you confirm your VIN with Lucid. That can get you up to the 5% threshold before the vehicle is delivered, and still be part of the original binding written contract that was signed before the bill took effect. Methinks that could be viable, but I haven't checked with Lucid yet to see if they'll do it.

I'd like to add that the at least "5% language the IRS put out" is not a specific guideline, but rather it was used as a general example that would be significant enough to lock buyers in a written binding contract towards purchasing the vehicle to qualify for the old tax credit under the Transition rule.

Additionally, the only new rule in effect immediately since the bill was signed is that vehicles must be final assembled in the 'Muricas, all the other parts of the new bill start on January 1, 2023. Since Lucid is made in 'Murica, Lucid isn't really affected until starting January 1, 2023 when the income cap, vehicle price cap, battery and materials source, and other etc. rules take effect.

According to the current language, if we do not receive further definitions/clarifications, and if we want to empirically meet that "at least 5%" general threshold, we technically have until December 31, 2022 to increase our deposit for our Lucid Airs to guarantee our tax credits.

However, at this time, it seems that several state departments including the IRS still needs to make their definitions and clarifications to this unprecedented new law as to what actually qualifies, especially under the Transition rule. Everything is still up in the air, but we still have time until the end of the year and we still technically qualify at this time.

Although, I trust that Lucid's legal department to make the appropriate notifications as we receive updates from the state on this.

 

[n8236]

Clear as mud.

 

[JerseyStrong]

Until there is an IRS ruling, anything said on this subject is only speculation.

 

[misanoblue]

There is also a chance that the law will be changed. Korea and the EU are complaining.

And - I'm hoping Lucid, Fisker, etc. are working with IRS for improved guidance on the existing law.

 

[NanoGauntlet]

The easiest way to solve this issue is that when you go to pay for the car. You fill out a form that the dealer/seller sends to the IRS/DMV proving that you're picking up the car that day and then the dealer/seller gets the credit, knocking your price down at time of sale. Boom everyone's happy.