barrelproof
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The $7500 federal EV tax credit is expiring on 9/30/25. Most manufacturers and dealers have been pushing potential buyers to purchase and take delivery by 9/30/25.
Two days ago the IRS released new guidance that states the following for the $7500 federal tax credit - https://www.irs.gov/newsroom/faqs-f...-known-as-the-one-big-beautiful-bill-act-obbb
"2. For purposes of the expiring clean vehicle credits under sections 25E, 30D, and 45W, what does “acquired” mean?
For purposes of sections 25E, 30D, and 45W, a vehicle is “acquired” as of the date a written binding contract is entered into and a payment has been made. A payment includes a nominal downpayment or a vehicle trade-in.
3. What effect does “acquisition” of a vehicle have on a taxpayer’s ability to claim a credit under sections 25E, 30D, and 45W?
Acquiring a vehicle prior to the termination date is an initial step, but acquisition alone does not immediately entitle a taxpayer to a credit. Sections 25E(a), 30D(a), and 45W(a) require the vehicle be “placed in service” to claim the respective credit (see IRS.gov for additional requirements). If a taxpayer acquires a vehicle by having a written binding contract in place and a payment made on or before September 30, 2025, then the taxpayer will be entitled to claim the credit when they place the vehicle in service (namely, when they take possession of the vehicle), even if the vehicle is placed in service after September 30, 2025. Taxpayers should receive a time of sale report from the dealer at the time they take possession or within three days of taking possession of the vehicle."
Could Rivian roll out binding contracts again, similar to the August 16th 2022 paperwork sent out to R1 reservation holders? Could they use this binding contract for existing (and even new) R2 reservation holders?
Rivian - make it happen
(Commentary - I have low expectations for this administration (via the IRS) in honoring this language when all is said and done. Though I could be proven wrong.)
Two days ago the IRS released new guidance that states the following for the $7500 federal tax credit - https://www.irs.gov/newsroom/faqs-f...-known-as-the-one-big-beautiful-bill-act-obbb
"2. For purposes of the expiring clean vehicle credits under sections 25E, 30D, and 45W, what does “acquired” mean?
For purposes of sections 25E, 30D, and 45W, a vehicle is “acquired” as of the date a written binding contract is entered into and a payment has been made. A payment includes a nominal downpayment or a vehicle trade-in.
3. What effect does “acquisition” of a vehicle have on a taxpayer’s ability to claim a credit under sections 25E, 30D, and 45W?
Acquiring a vehicle prior to the termination date is an initial step, but acquisition alone does not immediately entitle a taxpayer to a credit. Sections 25E(a), 30D(a), and 45W(a) require the vehicle be “placed in service” to claim the respective credit (see IRS.gov for additional requirements). If a taxpayer acquires a vehicle by having a written binding contract in place and a payment made on or before September 30, 2025, then the taxpayer will be entitled to claim the credit when they place the vehicle in service (namely, when they take possession of the vehicle), even if the vehicle is placed in service after September 30, 2025. Taxpayers should receive a time of sale report from the dealer at the time they take possession or within three days of taking possession of the vehicle."
Could Rivian roll out binding contracts again, similar to the August 16th 2022 paperwork sent out to R1 reservation holders? Could they use this binding contract for existing (and even new) R2 reservation holders?
Rivian - make it happen
(Commentary - I have low expectations for this administration (via the IRS) in honoring this language when all is said and done. Though I could be proven wrong.)
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