Tax credit update

[lucidukan]

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...

True, I am also in this barely-in-budget zone, not just because of the cost, but because I feel the value is not there to justify the price, especially once it crosses a certain threshold, then other competing options open up like the Tesla X or S Plaid or one might even hold off to see what Gravity or the CyberTruck is priced at instead of getting locked into this one.

 

[pdq]

I'm holding out hope per below, but I've also seen March 2023 as the cutoff for pre-IRA order "in service" date. In retrospect, I should've kept my Touring order (I'd been invited to finalize before the Pure press release). Oh well, I may just cancel the Pure as well to go with Porsche Macan EV in 2024.

EV purchasers who ordered a vehicle before August 16, 2022, and take delivery of their vehicle at a later date may be able to claim tax credits for vehicles not assembled in North America if they had a “written binding contract” to purchase the vehicle. In answering the question “what is a written binding contract,” the IRS noted that a nonrefundable deposit or down payment of 5% of the purchase price can be an indication of this type of contract.

https://crsreports.congress.gov/product/pdf/IN/IN11996

 

[blueice89]

I'm holding out hope per below, but I've also seen March 2023 as the cutoff for pre-IRA order "in service" date. In retrospect, I should've kept my Touring order (I'd been invited to finalize before the Pure press release). Oh well, I may just cancel the Pure as well to go with Porsche Macan EV in 2024.

https://crsreports.congress.gov/product/pdf/IN/IN11996

That’s not the irs guidance which Lucid called us to clarify near end of year.

 

[pdq]

That’s not the irs guidance which Lucid called us to clarify near end of year.

I didn't get a call. So Lucid confirmed we're screwed?

 

[idiot900]

That’s not the irs guidance which Lucid called us to clarify near end of year.

That guidance was written quite vaguely, although there is perhaps context that an accoutant or tax attorney would have that I, who is neither lawyer nor accountant, would have.

 

[Julesncate]

I spoke with my accountant about this and he said while the IRS guidance might change, he urged me to purchase BEFORE the end of 2022. And not only did I have to purchase, but I had to take possession of...I had hoped I could pay for the car and simply NOT take delivery, but that was a no go. And so I decided to upgrade my loaded Touring to an available GT (which honestly, Lucid ought to have suggested to us since they had a bunch of unclaimed GT's). I'll add that Lucid and my DA, Faraz, made it happen in a three day window between when I returned from overseas and dec. 31. The car wasn't as detailed as it should have been (I think because they were trying to push out a lot of cars before 01/01) but it was here.

 

[joec]

I spoke with my accountant about this and he said while the IRS guidance might change, he urged me to purchase BEFORE the end of 2022. And not only did I have to purchase, but I had to take possession of...I had hoped I could pay for the car and simply NOT take delivery, but that was a no go. And so I decided to upgrade my loaded Touring to an available GT (which honestly, Lucid ought to have suggested to us since they had a bunch of unclaimed GT's). I'll add that Lucid and my DA, Faraz, made it happen in a three day window between when I returned from overseas and dec. 31. The car wasn't as detailed as it should have been (I think because they were trying to push out a lot of cars before 01/01) but it was here.

I believe a good number of folks were "encouraged" by their DAs to either upgrade their Tourings to fully loaded or to take an existing GT in order to get EOY delivery. But not all DAs are equally proactive.

 

[rnr]

I believe a good number of folks were "encouraged" by their DAs to either upgrade their Tourings to fully loaded or to take an existing GT in order to get EOY delivery. But not all DAs are equally proactive.

I asked my DA for this option in december and was told that it would be at the new pricing only. Had no answer when I said that people on the forums are getting the old pricing. I think I just had a terrible DA.

 

[Julesncate]

I asked my DA for this option in december and was told that it would be at the new pricing only. Had no answer when I said that people on the forums are getting the old pricing. I think I just had a terrible DA.

when did you reserve your car? those who reserved ages ago (i reserved 2 years ago...)got the original pricing.

 

[rnr]

Mid 2021 so well over a year ago

 

[HariK]

I think that the prices will fall by the 7.5k tax credit amount once the tax credit is gone if we wait for a bit and buy a used vehicle for now and delay the purchase of a new EV. Supply chain improvement, battery prices falling, inflation and job cuts slowing demand and increasing inventory.....

 

[quantum]

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.

I think Lucid had wording that it wasn't a gaurantee, I remember reading something to that effect.

 

[quantum]

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

I don't think they should. Lucid clearly stated it was not a 100% gaurantee that we would get a credit.

 

[quantum]

"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."

"* 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."

So Lucid are off the hook.