āThe goal is simple enough: Get more drivers into ācleanā vehicles by giving EV buyers a tax break.ā
This is where that articles goes off the rails.
Cāmon Man! No Malarkey! 
Anyhow: This still doesnāt address the issue of the patchwork grid that would fall flat on itās face even just quadrupling BEV market penetration.
Last I looked at the Pachyās Iām not sure you would get by yearend - they were constantly shutting the factory down and there were several people waiting over 6 months in some forums
Iām the market for a 2023 BMW 330eā¦so if Iām reading this right, if I can get it ordered and delivered by 12/31/22, I will get the full $7500 credit (before the bill it was ~$5800) as all 330eās for NA are being built in Mexico, but if I order today and it somehow gets delayed to 01/01/23 I might get $0 depending on where the battery is sourced/assembled?
Donāt think you will get $7500, probably $5,836. Also some hackers here have reported that they got European allocation so make sure you can get one a Mexico allocation. If itās delayed past this year, you can always not take delivery, although deposits might be non-refundable depending on your state.
Thanks for the info. Iāve read summaries from various outlets and the PDF cheat sheet that was posted earlier, and the way Iām interpreting this is PHEV/EV cars get $7500 no matter what now assuming they meet the criteria for batteries in 2023 (Iāve yet to read something definitive on what $ PHEVās get for the remainder of 2022, which leads me to believe itās bumped up to $7500 as well this year). I definitely wish it was clearer! Iām in Alabama but potentially buying in Georgia, so Iāll have to run the deposit question by the local dealer to see how that would work if I donāt take delivery.
I bought two 330e cars in the last 11 months and they were both manufactured in Mexico. I have another one on order and the allocation I received will be built in Germany and thus will not qualify for the $5836 federal tax credit. Currently all the outstanding 330e allocations are scheduled to be built in Germany, hoping the October allocations will switch back to Mexicoā¦
If it is built in Mexico and delivered this year, you would be eligible for the $5836 credit, not $7500.
For the remainder of 2022, if the vehicle is built in North America, it gets whatever it got earlier in the year. Nothing else changes. If that was $0, its still $0. If that was $5000, itās still $5000. If that was $7500, itās still $7500.
Starting in 2023, there are two ways to qualify for a credit:
There is a battery manufacturing requirement, that states at least 50% of the battery must be manufactured in NA or a FTA country. That qualifies for $3750.
There is a battery critical material sourcing requirement, that states at least 40% of the critical materials must come from either NA or a FTA country. That qualifies for $3750.
There are a whole bunch of ways to disqualify for any credit.
If the vehicle is not built in NA, disqualified. If the msrp exceeds the income limits, disqualified. If you make too much money, disqualified. If the battery is less than 7 kWh, disqualified.
Thus far, its fairly well understood what vehicles will be automatically disqualified.
What is not known is what, if any, vehicles will qualify. The gov has not yet issued guidance on how to define what qualifies, so any list specifying if something will get the credit at this point is making stuff up.
My local dealership is quoting 4 months for the build/delivery, so at this point I think it may be better to stick it out until the new year and see what clarifications the IRS releases. Assuming things stay the same with the 330e, the only things up in the air would be the battery sourcing/manufacturing.
This is a huge up in the air.
I suspect most people are going to be very surprised at how few vehicles actuslly qualify next year.
How do you figure?
Iām very curious if the secretary is able to give guidance on looser battery rules for x years and then firmer ones for y years. Almost nobody will qualify if they battery rules are strict. As much as iād like to purchase a near-luxury EV, the space where these incentives make the most sense are on the Chevy Bolt and base model ID.4. It would actually allow families to get into an EV for around the price of a Civic or CRV.
If you look at the funding allocated for next year for credits, this is intended.
12 kWh battery capacity doesnt qualify for the full $7500 this year.
I misunderstood. For some reason I was thinking ID.4 (even though itās built in TN) vs. the BMW. Makes sense now ā¦ Thanks!
I thought I mostly understood all the provisions of the IRA but now Iām not sureā¦
Assume vehicle not assembled in the US but you have a binding purchase agreement signed prior to IRA enactment. I know that the vehicle and buyer can still qualify for the $7500 credit through the end of the 2022. However,
- If the vehicle is delivered in Jan 2023, does it still qualify for the $7500 credit?
- If yes to above, then do the income limits kick in (meaning vehicle eligible but buyer may no longer eligible)? Or does the binding purchase agreement allow carryover of all the old rules (vehicle assembly and income) until the vehicle is delivered?
TIA.
I will never not be able to laugh when I see this the words (or abbreviation) Inflation Reduction Act while describing how the govt is printing $7500 to give to Tesla buyers.
So far the interpretation is the vehicle can be delivered WAY in the future (Such as the Fisker Pear) and still qualify for the original rules. (the old requirements) as long as you have a binding contract.