No tax credit for customers with binding contracts.

[Ngkgb]

Am I crazy or does this not say that if you have a binding contract but take delivery in 2023, then the new rules apply?

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[Matt D.]

There doesn’t seem to be a provision in the guidance for when you made the purchase prior to 8/16/2022 but didn’t take delivery until sometime in 2023.

 

[Dark-Fx]

Am I crazy or does this not say that if you have a binding contract but take delivery in 2023, then the new rules apply?

The language in the paragraphs is different. The second paragraph makes no mention of a binding contract.

This guidance is just for people who are looking to claim their vehicle credit on their 2022 taxes. The second paragraph is saying that you don't qualify under the 2022 tax year because you did not take delivery of the vehicle during the tax year.

 

[astonius]

Am I crazy or does this not say that if you have a binding contract but take delivery in 2023, then the new rules apply?

Implicitly yes, but some are super optimistic.

 

[JerseyGreens]

As others have mentioned there is nothing new here.

We will get new guidance on 2023 tax filing implications at some point in late 2022. Until then rest easy my friends and hope for best.

 

[Autolycus]

Round and round we go again, with the same exact language discussed in multiple other threads, some of which have a title that's pretty easy to find.

We won't know until we get more guidance for 2023 taxes, and that probably won't happen until the IRS issues the guidance on battery material sourcing.

If you entered a written binding contract to buy a vehicle before August 16, 2022, but took possession on or after August 16, 2022, and before January 1, 2023, you may claim the credit based on the prior rules and disregard the assembly requirement.

If you purchased a vehicle between August 16, 2022 and December 31, 2022 but don't take delivery of the vehicle until 2023, see Credit for New Clean Vehicles Purchased in 2023 and After.

There's a third scenario not described here: "purchased" a vehicle before August 16, 2022 but don't take delivery until 2023 (or later). Will that scenario end up being taxed differently than the 2nd scenario described? Nobody knows. IRS probably hasn't made a final decision.

 

[mkennedy1996]

Am I crazy or does this not say that if you have a binding contract but take delivery in 2023, then the new rules apply?

Credits for New Clean Vehicles Purchased in 2023 or After | Internal Revenue Service (irs.gov)

It is not a good sign that the rules for 2023 and beyond make no mention of a binding contract entered into prior to Aug 2022.

 

[Ngkgb]

I need to revisit my reading comprehension classes.

 

[mkennedy1996]

As others have mentioned there is nothing new here.

We will get new guidance on 2023 tax filing implications at some point in late 2022. Until then rest easy my friends and hope for best.

Haven't they already published these guidelines:
Credits for New Clean Vehicles Purchased in 2023 or After | Internal Revenue Service (irs.gov)

 

[tomis916]

Am I crazy or does this not say that if you have a binding contract but take delivery in 2023, then the new rules apply?

You're not crazy. You are just trying to read IRS guidance as if it were common English. There is still a route to getting a credit under the old rules with a BPA for 2023 deliveries, but I wouldn't take it to the bank.

 

[Dark-Fx]

Haven't they already published these guidelines:
Credits for New Clean Vehicles Purchased in 2023 or After | Internal Revenue Service (irs.gov)

This is guidance strictly to qualify under the IRA.

Binding contract before the IRA should mean qualifying under the old rules. The IRS will eventually release additional guidance on this situation, but since 2023 tax year doesn't end for another 11.5 months, they have time.

 

[cohall]

I need to revisit my reading comprehension classes.

If it makes you feel any better...I read it the same way. But I haven't been following much of this closely since I took delivery last year.

 

[COdogman]

Credits for New Clean Vehicles Purchased in 2023 or After | Internal Revenue Service (irs.gov)

It is not a good sign that the rules for 2023 and beyond make no mention of a binding contract entered into prior to Aug 2022.

Agreed. It’s definitely possible the statement OP is referring to is also their answer for “binding contracts”.

 

[zipzag]

So, as an alternate strategy, the R1T can be configured dual motor max pack for under 80K

Is it really worth the chance of losing the old credit? Or are the income levels different?

There's a third scenario not described here: "purchased" a vehicle before August 16, 2022 but don't take delivery until 2023 (or later). Will that scenario end up being taxed differently than the 2nd scenario described? Nobody knows. IRS probably hasn't made a final decision.

I assume most of us here signed the purchase agreement before 8/16. The IRS warning seems to be what they consider a binding agreement under state law.

 

[Dark-Fx]

Agreed. It’s definitely possible the statement OP is referring to is also their answer for “binding contracts”.

There's three scenarios here even if you read the second as having a binding contract.

Scenario 1:

If you entered a written binding contract to buy a vehicle before August 16, 2022, but took possession on or after August 16, 2022, and before January 1, 2023

Scenario 2:

If you purchased a vehicle between August 16, 2022 and December 31, 2022 but don't take delivery until 2023

Scenario 3:
If I have a binding contract to buy a vehicle before August 16, 2022, and did not purchase between August 16, 2022 and December 31, 2022, then there is no guidance for me on this page.

Since Rivian doesn't actually let you purchase a vehicle without taking delivery, I don't think there is a single person that should be worried about scenario 2.

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