I will let @mllcb42 clear it up but I don’t remember him saying so and the IRA language is pretty clear on timing (read bottom of the page 385 onwards).
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Not exactly tomorrow but it can occur anytime before Jan 1, 2023. It’s whenever they drop guidance which can be in a couple weeks or sometime in December etc for the battery sourcing
Rumor: Federal EV credit overhaul back on table - #492 by mllcb42
The sourcing and battery requirements kick in when the secretary gives guidance. Those, however, are what sets the credit amounts. It isnt clear if anything qualifies prior to the battery guidance being given.
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Ahh yes, I stand corrected. 330e and X5 45e may lose some or all of the tax credit once the guidance is given by the secretary and if they don’t meet the sourcing criteria.
They also may not qualify for anything prior to that. The battery criteria now is the only thing that triggers a credit. It isnt clear if prior to guidance, everything satisfies the battery criteria, as it hasnt been clearly defined, or if nothing satisfies the battery criteria, as it hasnt been clearly defined.
I agree that the language is vague or even missing but I doubt such interpretation could happen since it effectively stops all the tax credit for the period between Biden signing the bill and secretary giving guidance.
Why would that surprise you? Theyre cutting the ev credit off at the knees already. If they were interested in maintaining continuity, they would have just had everything go into effect on a set date.
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But tax credit is not point of sale. During this period it seems to mean credit is unknown. It very well could be nada. But there should be no difference before or after guidance if it’s after signing by Biden.
I think I’m going to get a gas car now. Thanks all.
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From the art
that’s because the new legislation has no provision extending the “old” EV tax credit to purchases for the rest of the year. The only exception laid out is a binding, money-down contract to buy an EV for delivery yet this year, or buying that EV before President Biden signs the bill. You have two weeks, so get to it!
That’s interesting because the bill reads like it’s amending the old rule not writing a new one.
I really haven’t dived into the language yet cuz I’m really not ready to pay $5k over MSRP to get credit.
But it seems like that either way the all agree that it is replacing the current credit structure.
Really don’t know what that article is talking about. The entire bill is “amending” the previous code. Other than the North American assembly requirement/amendment which takes place immediately it clearly applies to “to vehicles placed in service after December 31, 2022”
Page 393 https://www.democrats.senate.gov/imo/media/doc/inflation_reduction_act_of_2022.pdf
- EFFECTIVE DATES.—
- 2 (1) IN GENERAL.—Except as provided in para-
- 3 graphs (2), (3), (4), and (5), the amendments made
- 4 by this section shall apply to vehicles placed in serv-
- 5 ice after December 31, 2022.
- 6 (2) FINAL ASSEMBLY.—The amendments made
- 7 by subsection (b) shall apply to vehicles sold after the
- 8 date of enactment of this Act.
- 9 (3) PER VEHICLE DOLLAR LIMITATION AND RE-
- 10 LATED REQUIREMENTS.—The amendments made by
- 11 subsections (a) and (e) shall apply to vehicles placed
- 12 in service after the date on which the proposed guid-
- 13 ance described in paragraph (3)(B) of section 30D(e)
- 14 of the Internal Revenue Code of 1986 (as added by
- 15 subsection (e)) is issued by the Secretary of the Treas-
- 16 ury (or the Secretary’s delegate).
- 17 (4) TRANSFER OF CREDIT.—The amendments
- 18 made by subsection (g) shall apply to vehicles placed
- 19 in service after December 31, 2023.
- 20 (5) ELIMINATION OF MANUFACTURER LIMITA-
- 21 TION.—The amendment made by subsection (d) shall
- 22 apply to vehicles sold after December 31, 2022.
- 23 (l) TRANSITION RULE.—Solely for purposes of the ap-
- 24 plication of section 30D of the Internal Revenue Code of
- 25 1986, in the case of a taxpayer that—
†HR 5376 EAS
394
- 1 (1) after December 31, 2021, and before the date
- 2 of enactment of this Act, purchased, or entered into
- 3 a written binding contract to purchase, a new quali-
- 4 fied plug-in electric drive motor vehicle (as defined in
- 5 section 30D(d)(1) of the Internal Revenue Code of
- 6 1986, as in effect on the day before the date of enact-
- 7 ment of this Act), and
- 8 (2) placed such vehicle in service on or after the
- 9 date of enactment of this Act,
- 10 such taxpayer may elect (at such time, and in such form
- 11 and manner, as the Secretary of the Treasury, or the Sec-
- 12 retary’s delegate, may prescribe) to treat such vehicle as
- 13 having been placed in service on the day before the date
- 14 of enactment of this Act.
2, 3, 4, and 5 are where all the battery stuff lies
Oh no doubt the battery stuff is a potential problem. But hopefully with industry lobbying they can drag that out a bit on guidance.
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I’ll be writing up a full summary at work tomorrow and will look into this deeper, though I’m on the state tax side. I’ll still have to take a further look at this and also see what minute changes may have been made since the Senate passed the bill.
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The $5,836 question:
Do you guys think this constitute a binding purchase agreement? It’s just a credit card authorization form, but I did sign and date it, at this point I am most likely not take the chance and won’t buy the car.
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Is there a VIN on it? If not, then no
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No VIN (although I just got the VIN), I asked the sales guy, people been calling them to get binding agreement like Rivian and their finance guy won’t do it (which is understandable).
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I like to say I am amazed by all the media writing incorrect info about changes to EV credits. But media is dead, so it isn’t surprising. None of these idiots have spent more than 1min actually reading the legislation. Then they attempt to write articles about what vehicles will now qualify and which won’t.
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