It's officially tax time are people going to claim the tax credit from the expired version of the tax code?

[Tesla2.0]

Rivian seems to think that “confirming” the order before the bill was signed qualifies now based on new IRS guidance.

https://www.reddit.com/r/Rivian/comments/11m9sgf

Ev credit for Rivian with binding contract update email

The IRS has released guidance on how taxpayers with valid written binding contracts signed on or before August 15, 2022 can claim the original EV tax credit—without restrictions on vehicle MSRP, buyer income, and manufacturing requirements—even if they don’t take delivery of the vehicle until 2023 or later.

To claim this credit, you can use Form 8936. Here are the Instructions and IRS Guidance.

Please note two key considerations:
From the Guidance: “To elect the credit under the prior rules you must elect the credit on your 2022 tax return after you take delivery of the vehicle. Depending on the date the vehicle is delivered, you can claim the credit on your original, superseding, or amended 2022 tax return.”
From the Instructions: “Taxpayers who took delivery in 2023 or after must use August 15, 2022 as the date placed in service when filing out Form 8936.”

I got that Rivian email too, although I placed my reservation prior to Aug 15th. They never confirmed my order, they still sent me this email. I don’t think just having reservation is a binding contract.

 

[LucidNJ]

So are people now able to double dip with the Lucid credit and the federal credit?

 

[Bobby]

So are people now able to double dip with the Lucid credit and the federal credit?

Well... Yes. The Lucid "credit" is a advertiser's way of saying "rebate" or even "discount."

 

[Babyrocko1908]

I got that Rivian email too, although I placed my reservation prior to Aug 15th. They never confirmed my order, they still sent me this email. I don’t think just having reservation is a binding contract.

It depends. Did Rivian do what Lucid did and convert your deposit to non-refundable when you confirmed your order prior to August 16, 2022? That's the key to the written and binding contract. I'm going to try to find my post on this in the tax credit thread and repost it here.

 

[Babyrocko1908]

So are people now able to double dip with the Lucid credit and the federal credit?

It's not a "double dip" it's a discount.

 

[Tesla2.0]

It depends. Did Rivian do what Lucid did and convert your deposit to non-refundable when you confirmed your order prior to August 16, 2022? That's the key to the written and binding contract. I'm going to try to find my post on this in the tax credit thread and repost it here.

They never did anything like Lucid did for confirmation of order. In fact? I don’t think they are even confident to deliver any vehicle within 2 years of reservation.

 

[Impatient7536]

so if i did the "confirmation" or "binding contract" thing on August 10, 2022 for my pure, with an estimated Q3 2023 delivery date, and i've already submitted my 2023 tax return, i assume i do an amendment on my 2023 tax return to claim the 7500 tax credit right?

if that's the case, it seems like we'll be able to get the 7500 lucid discount and the 7500 tax credit. thanks for the clarifications.

 

[LucidNJ]

It's not a "double dip" it's a discount.

So lucky. Curse you for your patience

 

[Babyrocko1908]

so if i did the "confirmation" or "binding contract" thing on August 10, 2022 for my pure, with an estimated Q3 2023 delivery date, and i've already submitted my 2023 tax return, i assume i do an amendment on my 2023 tax return to claim the 7500 tax credit right?

if that's the case, it seems like we'll be able to get the 7500 lucid discount and the 7500 tax credit. thanks for the clarifications.

This is correct. File an amendment to your return.

 

[Babyrocko1908]

They never did anything like Lucid did for confirmation of order. In fact? I don’t think they are even confident to deliver any vehicle within 2 years of reservation.

How much was your deposit? Was it 5%?

 

[Babyrocko1908]

Okay folks, so it took me a minute but here is the post that I referenced earlier in this thread about the transition rule. I spell out what my interpretation was of the rule and apparently the IRS has issued further clarification based on Rivian's email to current reservation holders.

I must stress once again as you read this -- I am NOT a tax attorney, nor am I an accountant, and this is NOT financial advice!!

I hope this helps!!

Post in thread '7500 EV tax credit update with new bill' https://lucidowners.com/threads/7500-ev-tax-credit-update-with-new-bill.2120/post-100720

 

[Shuasha]

They never did anything like Lucid did for confirmation of order. In fact? I don’t think they are even confident to deliver any vehicle within 2 years of reservation.

Yes they did, same process as Lucid.

 

[elin]

so if i did the "confirmation" or "binding contract" thing on August 10, 2022 for my pure, with an estimated Q3 2023 delivery date, and i've already submitted my 2023 tax return, i assume i do an amendment on my 2023 tax return to claim the 7500 tax credit right?

if that's the case, it seems like we'll be able to get the 7500 lucid discount and the 7500 tax credit. thanks for the clarifications.

Does Pure have a $7500 discount? I thought it was only for Grand Touring and Touring.

 

[MHDave]

Does Pure have a $7500 discount? I thought it was only for Grand Touring and Touring.

You're confusing the government tax credit with Lucid's selected models and trims rebate. Same $, different animals.

 

[Babyrocko1908]

Yes they did, same process as Lucid.

Well if they did and your deposit became non-refundable before August 16, 2022, you are grandfathered under the transition rule and your Rivian reservation qualifies for the old $7,500 tax credit.

 

[Babyrocko1908]

Does Pure have a $7500 discount? I thought it was only for Grand Touring and Touring.

Not from Lucid at this time but you might qualify for the previous $7,500 federal tax credit based on the transition rule.

 

[Babyrocko1908]

Does Pure have a $7500 discount? I thought it was only for Grand Touring and Touring.

Not from Lucid at this time but you might qualify for the $7,500 federal tax credit based on the transition rule.

 

[Babyrocko1908]

@CrewChief You see this thread? We tried to tell them!

But on a serious note, I'm just glad the IRS has gotten their shit together and released the proper guidelines because what the IRS was saying before was completely at odds with the actual language of the Transition Rule in the IRA. Recall, how I explained how the IRS must conform to tax laws. They've finally figured it out.

Shout out to Rivian too.

 

[pman]

Very good news. I am glad I stuck to my lucid reservation.

 

[Impatient7536]

Does Pure have a $7500 discount? I thought it was only for Grand Touring and Touring.

i was told that Pure qualifies for a 7.5k leasing credit, and Touring qualifies for either leasing or financing $7.5k credit.

so im assuming if we pair that up with the 7.5k tax credit, it'll come out to be 15k. maybe im misunderstanding all of this....