They gave the option of converting the fisker pre-order with a refundable deposit to a binding purchase agreement with a non-refundable deposit prior to the enactment of the IRA.
If that binding purchase agreement satisfies the transition rule is dependent on state law.
I read somewhere on the âinternetâ it had to be a 5% deposit? I accepted whatever and Iâll let them figure it out but I donât feel confident we will get the tax credit.
In the updated guidelines they referenced 5% as a significant deposit so it seems that anything below that is sort of a gray area
The Irs made a statement that basically said this:
âThe only thing that matters is what your state defines as a binding contract. Generally, 5% deposit counts, but the only thing that actually matters is what your state defines as a bunding contractâ and a bunch of people read that as âomg has to be 5%!â
I believe most of the new tax credit crap is gray.
I never took the 5% to be serious anyway, Fisker said hey sign this, your deposit is non refundable and Fisker will figure out the rest. Iâm not losing much this way, and hopefully they do figure it out.
Most of these companies will figure out the loopholes, even Ford. They know how to work the system more than we do.
Itâll make more sense as time goes on and consumer options start forming. As a consumer, it sucks to live in these times bc it will take awhile before the dust settles.
Most of what is going on doesnât make sense unless you focus on the bigger picture. The east dominates the EV supply chain and this is of concern for the US because it adversely affects their influence capacity. With shifts in global order that continue to unload with a bang, radical policies such as the Inflation Reduction Act will pass to make sure these shifts fall in USâs favor. Think of it as a contest for clout that will shape the future of geopolitics. And the EV market is important because it can alter (form, strengthen, etc) alliances. Remember that relationships are not built on money alone itâs also meshed with political, cultural, diplomatic and military relations (ie: transatlantic)
Very well said, I agree the EV market will be forced upon us, If it isnât already. The tax credits in these forums are all gonna be about trying to find the loopholes.
We should probably start a â2023 tax credit loopholeâ part 1 thread.
Itâs going to be very slim pickings next year. @mllcb42 provided data a few weeks back about how the feds expect very few cars to qualify in 2023.
All of my last 3 cars were contracted with 0 DAS. I donât think the 5% rule makes any sense. In fact, my Ford Mach-E Purchase was contracted on 8/10, and taken delivery on 8/17. I didnât put 5% down
Mach E has no issues as it is good before and after the IRA
Now try that on a ID4, no deposit, no rebate. How to prove it was non refundable.
Theres no requirement the deposit has to be non-refundable unless your state specifically requires that.
Thats because its a generalization and not a rule
Really you can say a No Deposit is a 'Non Refundable Deposit?
Im saying the only thing that matters is state law of what a binding contract is. That doesnt necessarily mean a deposit is required or that it must be non-refundable, unless that specific state law requires it to be.
You are going too general, Iâm talking about a Specific Order for a Specific Car to answer the previous post.
OP had a MachE so the argument of âNon Refundable Depositâ is moot. it doesnât matter since the MachE is made in the USA. State rules donât apply nor do the Federal Guidelines since it is the same before 8/16 and after 8/16.
I then said if you put an Order with No Deposit on a ID4, proving you had a ânon refundable orderâ on an order you didnât put anything on, would be fun to prove.
It wouldnt be hard to prove at all. If you had a binding purchase agreement that met the state definition, youâd have all the proof you needed.
Your binding purchase agreement either meets your state law requirements or it doesnât.
In some states that may mean a non-refundable deposit, in others it doesnt.
If you say so, but then we donât know any answers until next year.
I dont say so. The IRS says so. Theyve clearly stated that the definition of what a binding purchase agreement is is defined by the relevant state law.
The conventional wisdom is that in California, a deposit on a car is always refundable until you take possession of the car. So that would mean that folks in California are SOL on this issue.