If I’m understanding this correctly, this essentially kills the lucid flip dream?
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Only if it replaces the current iteration and not add to it.
If it makes it at all.
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Por que no los dos? 
Ahh shit there goes my EV/PHEV recycling side hustle. Good on them for closing the loophole though…
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Just need a new side hustle recruiting EV shell buyers.
I know I’m looking.
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If the limitation is based on AGI and you are close to the cap you can do certain things to lower your AGI like contributing more to your 401K, HSA etc.
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Good point but isn’t the 401k contribution capped at something like $20k/year?
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I believe it’s 20500 plus an extra 6500 if you’re 50+. If you are self employed you can get close to 60K.
All this Schumer-Manchin stuff would only take effect in 2023 right? So no change for 2022 when you can get the $7,500 EV credit regardless of income or car price?
Correct but a noteworthy detail is that you need to be under the $150/300k limit even in the preceding year so it kind of impacts this year too in that sense. In other words to claim any EV tax credit in tax year 23, you need to make sure your tax year 22 AGI is under those limits.
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Whether you’re for or against all this - calling it the “inflation reduction act” is about the most hilariously ironic thing I’ve seen in a while….
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Just another day in D.C
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The arsonists attempting to put out the fire…
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Alas, if the limit is $350k income to claim full credit, I will be getting the full credit 
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newspeak brought to you by minitrue.
How is that going to work for people who have already bought one in YTD 2022?
How is that going to work for people who have already bought one in YTD 2022?
They’ll be pounding that sand!
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Tax year 22 purchases are still subject to the rules from the current bill so no effect for cars bought until 12/31/2022
Another interesting piece seems to be around a sales agreement signed before Biden signs the bill (so not 12/31 but whenever POTUS signs it) but cars that are not in service until 2023 can still claim the old credit. Meaning, if you can sign a sales agreement with Rivian before Biden signs the bill and take delivery some time in 2023, you can still claim the tax credit based on the old rules (i.e no income cap or MSRP limits)
I believe what it’s saying is for the 2023 tax credits you need to be under the AGI limits in the preceding year (in this case 2022). It doesn’t and shouldn’t have an impact on the tax credit itself in 2022. Therefore it’s not retroactive, it just considers 2022 income for 2023 eligibility.
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Yep, exactly.
Oh another thing that will make this quite complicated is the language around origins of the components. There will be a lot of EVs (especially until the manufacturers can adjust things) that will not meet this criteria:
$7,500 credit is broke into two binary pieces meaning the vehicle either qualifies for each piece of the credit or it doesn’t. No longer based on size of battery. (Page 366, line 6)
$3,750 of the new credit is based upon the vehicle having at least 40% of its battery critical minerals from the United States or countries with a free trade agreement with the United States. This is a list of countries with free trade agreements with the US.(Page 371)
The other $3,750 of the new credit is based on at least 50% of the battery components of the vehicle coming from the United States or countries with a free trade agreement with the US. (Page 372, line 13)
The 40% minerals requirement increases to 50% in 2024, 60% in 2025, 70% in 2026 and 80% in 2027. (page 371 line 23)
The 50% battery components requirement increases to 60% in 2024, 70% in 2026, 80% in 2027, 90% in 2028 and 100% in 2029. (Page line 373)
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