Correct . . . that is why I said " assuming the $80,000 MSRP price cap remains in place disqualifying a truck for the credit completely." Someone like you with a pro order may be in a totally different scenario. Time will tell on how the battery component qualifications shake out.
Another cap is the income limit. Buyers of EVs above a certain income level are not qualified for federal tax credit starting 2023. Make sure to check them if you rely on it.
Correct. I did not include anything about the income limit in the poll for obvious reasons.
Yeah that is true, I just wish we knew it more definitively. It may be a while before we find out.
Added a selection for you . . . I guess it should have said "I am unhappy to not get the tax credit . . . but . . ."
We can get a $75000 tax credit? Wow free truck! 😏
Here's a thought: can a buyer purchase a truck pre-delivery or provide a contract with a significant deposit before 12/31 and still qualify? The IRS allowed vehicle buyers with a "written binding contract" to qualify under the pre-August 16, 2022 rules if a written binding contract was in place before 8/16. Would the same apply to written binding contracts signed before 12/31/22? If so, those trucks would not be subject to the sourcing, MSRP, or income rules that start 1/1/2023.
Transition Rule for Vehicles Purchased before August 16, 2022
If you entered into a written binding contract to purchase a new qualifying electric vehicle before August 16, 2022, but do not take possession of the vehicle until on or after August 16, 2022 (for example, because the vehicle has not been delivered), you may claim the EV credit based on the rules that were in effect before August 16, 2022. The final assembly requirement does not apply before August 16, 2022.
Vehicles Purchased and Delivered between August 16, 2022 and December 31, 2022
If you purchase and take possession of a qualifying electric vehicle after August 16, 2022 and before January 1, 2023, aside from the final assembly requirement, the rules in effect before the enactment of the Inflation Reduction Act for the EV credit apply (including those involving the manufacturing caps on vehicles sold). If you entered into a written binding contract to purchase a new qualifying vehicle before August 16, 2022, see the rule above.
What Is a Written Binding Contract?
In general, a written contract is binding if it is enforceable under State law and does not limit damages to a specified amount (for example, by use of a liquidated damages provision or the forfeiture of a deposit). While the enforceability of a contract under State law is a facts-and-circumstances determination to be made under relevant State law, if a customer has made a significant non-refundable deposit or down payment, it is an indication of a binding contract. For tax purposes in general, a contract provision that limits damages to an amount equal to at least 5 percent of the total contract price is not treated as limiting damages to a specified amount. For example, if a customer has made a non-refundable deposit or down payment of 5 percent of the total contract price, it is an indication of a binding contract. A contract is binding even if subject to a condition, as long as the condition is not within the control of either party. A contract will continue to be binding if the parties make insubstantial changes in its terms and conditions.
Credits for New Electric Vehicles Purchased in 2022 or Before | Internal Revenue Service
If you bought or leased a new, qualified plug-in electric vehicle (EV) in 2022 or before, you may be eligible for a clean vehicle tax credit up to $7,500 under IRC 30D.www.irs.gov
Have you talked to the dealer? I am having the same conversation With my dealer. They said they could t do anything until the vehicle was in the state or something. If You guys reach some agreement that works, please post it, cuz I’m interested in tryign something similar.
Binding contracts had to in place prior to 8/16/22. Hence the reason Rivian was having customers scramble to get that binding contract completed in the two days prior to 8/16.
Why would you think they would say a binding had to be in place prior to 8/16 but you can still complete one after that date and still qualify? That makes no sense. Regardless any binding contract done now would not qualify.Here's a thought: can a buyer purchase a truck pre-delivery or provide a contract with a significant deposit before 12/31 and still qualify? The IRS allowed vehicle buyers with a "written binding contract" to qualify under the pre-August 16, 2022 rules if a written binding contract was in place before 8/16. Would the same apply to written binding contracts signed before 12/31/22? If so, those trucks would not be subject to the sourcing, MSRP, or income rules that start 1/1/2023.
Transition Rule for Vehicles Purchased before August 16, 2022
If you entered into a written binding contract to purchase a new qualifying electric vehicle before August 16, 2022, but do not take possession of the vehicle until on or after August 16, 2022 (for example, because the vehicle has not been delivered), you may claim the EV credit based on the rules that were in effect before August 16, 2022. The final assembly requirement does not apply before August 16, 2022.
Vehicles Purchased and Delivered between August 16, 2022 and December 31, 2022
If you purchase and take possession of a qualifying electric vehicle after August 16, 2022 and before January 1, 2023, aside from the final assembly requirement, the rules in effect before the enactment of the Inflation Reduction Act for the EV credit apply (including those involving the manufacturing caps on vehicles sold). If you entered into a written binding contract to purchase a new qualifying vehicle before August 16, 2022, see the rule above.
What Is a Written Binding Contract?
In general, a written contract is binding if it is enforceable under State law and does not limit damages to a specified amount (for example, by use of a liquidated damages provision or the forfeiture of a deposit). While the enforceability of a contract under State law is a facts-and-circumstances determination to be made under relevant State law, if a customer has made a significant non-refundable deposit or down payment, it is an indication of a binding contract. For tax purposes in general, a contract provision that limits damages to an amount equal to at least 5 percent of the total contract price is not treated as limiting damages to a specified amount. For example, if a customer has made a non-refundable deposit or down payment of 5 percent of the total contract price, it is an indication of a binding contract. A contract is binding even if subject to a condition, as long as the condition is not within the control of either party. A contract will continue to be binding if the parties make insubstantial changes in its terms and conditions.
Credits for New Electric Vehicles Purchased in 2022 or Before | Internal Revenue Service
If you bought or leased a new, qualified plug-in electric vehicle (EV) in 2022 or before, you may be eligible for a clean vehicle tax credit up to $7,500 under IRC 30D.
Edited. Thanks. Hate it when I do that.
