[URGENT] $7500 credit for current reservation holders

[extesla]

Just confirmed. I don't really have much to lose, as I fully plan to take delivery of my Touring, whenever that may be. I don't think this will by any means guarantee the $7,500 credit, but I know NOT converting this to an order will mean I DEFINITELY won't get the credit.

One line I found interesting on the web site: "For vehicles not delivered to Lucid locations, additional freight and delivery charges may apply."

I'm guessing Touring and Pure customers will need to pay extra for home delivery. I sort of assumed this would be the case, but just thought I'd let people here know, so that expectation is set.

I was told that since I’m within a two hour drive of the LA area, they will charge me if I want delivery to my home. Oh well, I get to take it for a nice drive home after picking it up. Whenever that comes to pass………..

 

[noobzilla]

For those wondering whether if tax credit will apply in 2022 or 2023 since we are entering into this binding purchase agreement in 2022, the answer is the year the car is placed in service (meaning delivered and driven).

Instructions for Form 8936 (2023) | Internal Revenue Service

www.irs.gov

Key word is "placed in service" which is technically the date we acquire and drive the vehicle. They also gave an example:

The credit for qualified two-wheeled plug-in electric vehicles expired for vehicles acquired after 2021. However, if you acquired the two-wheeled vehicle in 2021, but placed it in service during 2022, you may still be able to claim the credit for 2022. Do not report two-wheeled vehicles acquired after 2021 on Form 8936 unless the credit is extended.

 

[noobzilla]

got a response from my SA, here's pretty much the main points

1) we do not need to finalize the vehicle design. final configuration and design can be placed once production begins
2) "Should you confirm your Air Pure order and wish to upgrade after receiving your invite to order you may upgrade and remain eligible, considering the order is confirmed by no later than August 12th." - i assume this means, if we confirm the pure order now, and months later, they start touring production and we want to upgrade, we will be able to upgrade and keep original pricing AND the tax credit, assuming that we did this current "deposit lock-in confirmation" before August 12th.

Just posting here for information. This is a question regarding qualifying for tax credit if upgrading trims at a later date after bill is passed.

 

[mallig]

How do you get that? There was no IPO, it was a SPAC merger. The stock went $59 on CCIV with leaks, Lucid was $24 officially if I recall, and currently $18. That's a negative return. I know the stock only fell 10% on the new adjusted prod numbers, but that doesn't mean anything. If Lucid continues in this direction you are going to see the stock drop like a rock off a cliff. I am not saying it's going to happen, but Lucid is working on speculation, hope, and promise. I am a stockholder. I want the car, I want them to succeed. I am not blinded by rose pedal glasses either. When things keep getting worse it's a pivotal moment for Lucid. I wouldn't bet against Elon when he says to Lucid & Rivian you will go bankrupt unless you make drastic changes and control expenses.

What got me was when Lucid said they didn't have enough carpet to manufacture cars. What! Dalton GA is the carpet capital of the US, pick up the phone. Stop the excuses already.

If you were a trained investor you could have done what many, including me did when buying LCID shares (or the SPAC shares). After conversion, LCID became optional. By selling upside calls to reduce net cost as well as buying puts as downside insurance when applicable (just before earnings reports) has made trading LCID very enticing. As for me, I have reduced my cost basis on acquired shares with an original cost of over $35 per share down to now less than $11. I continue to work the net value lower month over month. Certainly any astute investor can do this, thus making owning the shares highly profitable.

 

[codys21]

If we do enter into a binding contract now, the car still needs to be delivered in 2023, correct? Based on my estimated spot in the reservation list, I highly doubt I'd get my car delivered in 2023. Still probably worth the $300 but not sure if worth the $1000.
Can someone confirm if the car needs to be delivered in 2023?

 

[limtless]

If you were a trained investor you could have done what many, including me did when buying LCID shares (or the SPAC shares). After conversion, LCID became optional. By selling upside calls to reduce net cost as well as buying puts as downside insurance when applicable (just before earnings reports) has made trading LCID very enticing. As for me, I have reduced my cost basis on acquired shares with an original cost of over $35 per share down to now less than $11. I continue to work the net value lower month over month. Certainly any astute investor can do this, thus making owning the shares highly profitable.

What does that have to do with Lucid as a company surviving the long-term? What does it mean for Lucid long-term if you (us) get a tex credit when Lucid can't offer it anymore and the cars are more expensive than when released? How does it affect Lucid?

Great, you gained a profit on the stock as of today. Great, you might get an up to $7,500 tax credit. By "you" I mean all of us. How does this help Lucid weather the storm? Lucid can't offer a tax credit, their prices have gone up, and they can't make production numbers...I doubt any of us see the $7,500 tax credit for Lucid (red tape). Look at the big picture and not your (our) own personal gain. How many more quarters do you think they can survive if things don't change drastically?

 

[noobzilla]

If we do enter into a binding contract now, the car still needs to be delivered in 2023, correct? Based on my estimated spot in the reservation list, I highly doubt I'd get my car delivered in 2023. Still probably worth the $300 but not sure if worth the $1000.
Can someone confirm if the car needs to be delivered in 2023?

I dont think there's ever any guarantee that they have to deliver by a certain year.

 

[codys21]

I dont think there's ever any guarantee that they have to deliver by a certain year.

Could be. I could've sworn I read something like that earlier but now I'm Googling it and can't find anything that says it needs to be delivered by the end of 2023. Maybe I misremembered.

 

[noobzilla]

Could be. I could've sworn I read something like that earlier but now I'm Googling it and can't find anything that says it needs to be delivered by the end of 2023. Maybe I misremembered.

Ohhhh you mean for the tax credit? Hmm I'm not sure. I think it couldve just been an example ie ordered in 2022 and delivered in 2023.

 

[DaveyBoyGT]

I was told that since I’m within a two hour drive of the LA area, they will charge me if I want delivery to my home. Oh well, I get to take it for a nice drive home after picking it up. Whenever that comes to pass………

Did they indicate want the time or distance point was where they will charge you for shipping? I am 685 Mi from the nearest Service Center and my DA said I will not be charged for shipping to my home. He didn't know at what point they would charge a buyer for shipping. Now we know a 2 hr drive from the Service Center will incur shipping charges. Many on this forum would like to know what the tipping point is.

 

[hanifjenkins]

$300 is not that much to risk considering the price of the vehicle. Hopefully everyone got the Pure for $77,400 price with 3 years of free charging. I lost more when I canceled by model Y. Plus this gives me more time to build up my deposit. With rates increasing as they are, I want to put as much as possible down on the car. So, I'm continously saving for the vehicle and ALL the taxes and fees associated with purchasing a new vehicle. I wish I could afford glass top roof and the dual motor. I had to compromise to get the price down to a budget that I could afford. I'm only looking for a 36 month loan.

 

[hanifjenkins]

For those wondering whether if tax credit will apply in 2022 or 2023 since we are entering into this binding purchase agreement in 2022, the answer is the year the car is placed in service (meaning delivered and driven).

Instructions for Form 8936 (2023) | Internal Revenue Service

www.irs.gov

Key word is "placed in service" which is technically the date we acquire and drive the vehicle. They also gave an example:

The credit for qualified two-wheeled plug-in electric vehicles expired for vehicles acquired after 2021. However, if you acquired the two-wheeled vehicle in 2021, but placed it in service during 2022, you may still be able to claim the credit for 2022. Do not report two-wheeled vehicles acquired after 2021 on Form 8936 unless the credit is extended.

Thanks, I was trying to find that answer. Appreciate you sharing.

 

[Dr_B]

It’s important to consider the implications of the income limitations in the new law. Likely that most people won’t qualify for the credit, even if they do place an order now.

 

[joec]

It’s important to consider the implications of the income limitations in the new law. Likely that most people won’t qualify for the credit, even if they do place an order now.

Yep. Certainly looks that way. These income limits go into effect immediately, I presume? No migration period as with the signed contract?

 

[EVCar]

Yep. Certainly looks that way. These income limits go into effect immediately, I presume? No migration period as with the signed contract?

If people have to shell out an extra 7.5k, I suspect many here can, but for this whole discussion, the effective date for income requirement is very pertinent. Does anyone know?

 

[changinator]

If people have to shell out an extra 7.5k, I suspect many here can, but for this whole discussion, the effective date for income requirement is very pertinent. Does anyone know?

Yep. Certainly looks that way. These income limits go into effect immediately, I presume? No migration period as with the signed contract?

It’s important to consider the implications of the income limitations in the new law. Likely that most people won’t qualify for the credit, even if they do place an order now.

Per the text regarding the transitory phase (between when bill is signed til when bill goes into effect,) if order is placed before the bill goes into effect on Jan. 1, 2023, the old tax credit stipulations applies. This means, assuming that locking in your order now qualifies you under the transitory phase clause, that income limits don't matter.

 

[Tim-in-CA]

I wonder once delivered do you need to file an amended 2022 tax return or do you claim the tax credit in the year you receive the vehicle?

 

[hanifjenkins]

It’s important to consider the implications of the income limitations in the new law. Likely that most people won’t qualify for the credit, even if they do place an order now.

The income level is not as important as the sourcing of the battery materials and location of where it was built. There's not a lot of cars that will qualify. That's why I locked my contract.

 

[lucidophilic]

My question is about delays. In case, if Lucid can deliver my Pure in 2024 Q1, am I still eligible old terms? I mean is the 7,500$ tax credit still valid because I signed the contract before Biden’s rule?

 

[noobzilla]

I wonder once delivered do you need to file an amended 2022 tax return or do you claim the tax credit in the year you receive the vehicle?

You claim based on year placed in service aka delivered and starts being driven