Tax credit update

[blueice89]

Hi all,
Lucid called me 2 days ago to tell me since I didn’t put 5% down I most likely would not get Tax credit on 2023 delivery date Touring with Stealth. This made me wonder I didn’t ask the Lucid person but is it a choice to give them 5% down now so it’s “binding” by irs rules? I should have asked that. Did anyone else ask that?

 

[joec]

Hi all,
Lucid called me 2 days ago to tell me since I didn’t put 5% down I most likely would not get Tax credit on 2023 delivery date Touring with Stealth. This made me wonder I didn’t ask the Lucid person but is it a choice to give them 5% down now so it’s “binding” by irs rules? I should have asked that. Did anyone else ask that?

It had to be 5% before the deadline, August something or other. Adding more now won’t help.

 

[blueice89]

It had to be 5% before the deadline, August something or other. Adding more now won’t help.

Isn’t this dumb? Why call us after 3 months hmmm it’s like we got the rug pulled

 

[joec]

Isn’t this dumb? Why call us after 3 months hmmm it’s like we got the rug pulled

As I’ve said before, it was a Hail Mary play to begin with. No one knew any more then than they do now. But Rivian and other companies were telling customers they could guarantee the tax credit with this, so Lucid was under tremendous pressure to do something.

I remember at the time saying Lucid should just let it go, but in the end I think there were just too many customers who felt like Lucid didn’t care enough to try and save the credit, even though it was completely out of their hands.

I do think it was ultimately good that they offered the option to confirm at the time, though. I just wish the wording had made it more clear it wasn’t any sort of guarantee. The IRS could still come back in January or February and say “okay, we’ll accept less than five percent”, and all will work out in the end.

But Lucid seems to be setting the expectation now that this is unlikely. Which they probably should have done all along.

 

[idiot900]

I don't understand why they didn't offer to take a 5% deposit before August 16. I would have gladly done it, and why would they refuse a bit more revenue?

 

[hydbob]

I don't understand why they didn't offer to take a 5% deposit before August 16. I would have gladly done it, and why would they refuse a bit more revenue?

Because if they took 5% nonrefundable and then started refunding people wouldn't that put them in legal trouble? Just a guess...doesn't matter, again, thr IRS still hasn't said anything about this officially.

 

[idiot900]

Because if they took 5% nonrefundable and then started refunding people wouldn't that put them in legal trouble? Just a guess...doesn't matter, again, thr IRS still hasn't said anything about this officially.

Well, then...make it optional, but actually stand by the nonrefundability if the customer chooses to pay?

Yes, doesn't matter, truly an academic discussion anyway. Unless the IRS provides further guidance against, I'll try for the credit but will be prepared to pay.

 

[changinator]

It had to be 5% before the deadline, August something or other. Adding more now won’t help.

For vehicles made outside of the Americas, i.e. Fisker, etc, it's before Aug 16. For vehicles made in Americas, i.e. Rivian, Lucid, it's before January 1, 2023.

 

[blueice89]

Sounds like we are all trying anyways lol

 

[Babyrocko1908]

Hi all,
Lucid called me 2 days ago to tell me since I didn’t put 5% down I most likely would not get Tax credit on 2023 delivery date Touring with Stealth. This made me wonder I didn’t ask the Lucid person but is it a choice to give them 5% down now so it’s “binding” by irs rules? I should have asked that. Did anyone else ask that?

Still nothing official from the IRS. Don't give up yet.

 

[Spiderman77]

Hi Everyone!
I recently got a final order confirmation for the Air Pure and placed my non-refundable $300 payment before August 16 for the binding agreement. When I asked my Lucid representative about the tax credit today, he said that the Pure would probably take 1 to 3 months to deliver but I wouldn't be able to take the tax credit if the car was delivered after January 1, 2023 based on the IRS guidelines. He said before I confirm my final order, I should be comfortable knowing I may take delivery of the vehicle without receiving the credit. I'm confused and disappointed since the binding agreement would be applied if I took delivery of the car in 2023. What use is the binding agreement then?

 

[joec]

Hi Everyone!
I recently got a final order confirmation for the Air Pure and placed my non-refundable $300 payment before August 16 for the binding agreement. When I asked my Lucid representative about the tax credit today, he said that the Pure would probably take 1 to 3 months to deliver but I wouldn't be able to take the tax credit if the car was delivered after January 1, 2023 based on the IRS guidelines. He said before I confirm my final order, I should be comfortable knowing I may take delivery of the vehicle without receiving the credit. I'm confused and disappointed since the binding agreement would be applied if I took delivery of the car in 2023. What use is the binding agreement then?

The hope at the time we entered the agreement was that the binding agreement would allow us to take delivery in 2023 and still get the credit. Based on what limited guidance the IRS has given on this topic since then, Lucid no longer believes the IRS will count that binding agreement, since it is below the 5% threshold the IRS provided in an example.

Technically, the IRS has not given full guidance on this matter, however. So there is still a chance the tax credit will be able to be claimed. But I think Lucid just wants to set expectations that this is unlikely, given what we now know.

 

[pjdcorp]

For vehicles made outside of the Americas, i.e. Fisker, etc, it's before Aug 16. For vehicles made in Americas, i.e. Rivian, Lucid, it's before January 1, 2023.

So are you saying that one could still put down 5% now & secure the credit? Do you know where in the IRS regs it says this?

 

[lucidukan]

The hope at the time we entered the agreement was that the binding agreement would allow us to take delivery in 2023 and still get the credit. Based on what limited guidance the IRS has given on this topic since then, Lucid no longer believes the IRS will count that binding agreement, since it is below the 5% threshold the IRS provided in an example.

Technically, the IRS has not given full guidance on this matter, however. So there is still a chance the tax credit will be able to be claimed. But I think Lucid just wants to set expectations that this is unlikely, given what we now know.

I got a similar call from Lucid for the Air Touring. Take delivery this year or loose the tax credit. The particular options I chose are not even available till next year unless I upgrade them to what is being built this year. Specifically Dream Drive Pro and Surreal Sound Pro. Together they exceed the tax credit so still thinking about it. I don’t care for the DDP at this time.

 

[lucidukan]

I got a similar call from Lucid for the Air Touring. Take delivery this year or loose the tax credit. The particular options I chose are not even available till next year unless I upgrade them to what is being built this year. Specifically Dream Drive Pro and Surreal Sound Pro. Together they exceed the tax credit so still thinking about it. I don’t care for the DDP at this time.

IMO Lucid should just adjust the price to compensate for the loss of tax credit for customers who paid the deposit on their advice.

 

[Drendino]

If true, this would make a compelling argument for those with loaded Touring reservations to convert to an already built GT.

 

[MorganB]

IMO Lucid should just adjust the price to compensate for the loss of tax credit for customers who paid the deposit on their advice.

They were clear that the binding contract was an attempt to qualify but that the law was not clearly defined so no guarantees. They can't control the fed. I don't feel like they owe anyone anything. At the end of the day its between the IRS and the individual.

 

[sscool1]

IMO Lucid should just adjust the price to compensate for the loss of tax credit for customers who paid the deposit on their advice.

As much as I would love that, I agree with MorganB in that the tax law has nothing to do with Lucid. Even if Lucid could deduct a few thousand or something to show good faith in not being able to deliver many cars within this year it's pretty clear that they don't really have much incentive to do this. On the one hand the tax credit does not affect their bottom line while any reduction in price or discount would eat at their much needed profits.

I understand there are many (like myself) that hedged on the fact that with the tax credit, it made this car a bit more affordable. There are 3 camps the way I see it: the ones that feel Lucid is unaffordable and out of their budget, the ones that could care less about the tax credit because their relatively wealthy and don't really need it, and the ones like myself where this is barely in the budget in which the tax credit may have been one of the deciding factors in deciding to get this car. TBH I technically can go without the tax credit, but it does leave a little bit of discomfort knowing that this car just became $7,500 more expensive all because they couldn't deliver their cars in their original speculated time frame. But what can we do...

 

[GEWC]

IMO Lucid should just adjust the price to compensate for the loss of tax credit for customers who paid the deposit on their advice.

Yeah, no.

 

[noobzilla]

IMO Lucid should just adjust the price to compensate for the loss of tax credit for customers who paid the deposit on their advice.

The gov't should owe us $50,000 to compensate for all the promises they never delivered