Latest EV tax credit status (as of 12/30/22) - summary by NYT

[brancky3]

We can look at income taxes however we want, but what I know for certain is that if you take the average of what every American pays and compare it to my personal tax bill I pay quite a bit more than my "fair share"

I think a lot of people in this forum are going to be in the same boat.

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[Jac]

Yes, I believe the United States Congress first voted to enact a progressive federal income tax with the Revenue Act of 1862.

 

[Thedude]

Came here to echo TexasCrane's post. Me getting a 7500 dollar credit off my income taxes isn't American taxpayers subsidizing anything. We can look at income taxes however we want, but what I know for certain is that if you take the average of what every American pays and compare it to my personal tax bill I pay quite a bit more than my "fair share"

By no means am I saying not to take advantage if it when offered. I most certainly am so it would be hypocritical to say other people shouldn’t. I just think it’s a bit of a joke to subsidize expensive luxury items at the federal level.

 

[Donald Stanfield]

By no means am I saying not to take advantage if it when offered. I most certainly am so it would be hypocritical to say other people shouldn’t. I just think it’s a bit of a joke to subsidize expensive luxury items at the federal level.

It’s not really a subsidy if the only people who qualify for it are taking it off their personal tax bills IMO. Me keeping my own money isn’t the government doing me a solid it’s keeping more of what I earned.

I guess I just approach it from a different standpoint than you do. My default position is the government takes far too much money from someone like myself and should spend far less instead so when an opportunity to keep more of my money arises I see it as what should have happened in the first place not a favor or a bonus.

Also, the government isn’t doing it because they are pals Or because they want rich dicks to have fancy electric cars while the average guy picks up the tab. The reason for the tax credit is EV’s are the vehicle of the future but they are too expensive today.

The only people who CAN buy them are people with money to burn on frivolity. In order for technology to advance to the point where your average consumer can afford an EV and to where EV battery technology is a viable replacement to ICE for most people companies need to innovate.

In a “free” market the only innovation that takes place is when there is a financial incentive to do so. The incentive right now is that the vehicles are attractive enough to the people buying them and the government credit just opens that door to more people. That’s why the rules changed this past year. There are enough companies invested in BEVs now that the government is trying to force manufacturers to lower prices and cut costs.

In a capitalist society incentive can only be positive. So you have to create financial incentives to make the behavior you want. I am making clear this isn’t intended to be political or in favor of one party or another just trying to explain why the incentive exists.

 

[Jac]

It’s not really a subsidy if the only people who qualify for it are taking it off their personal tax bills IMO. Me keeping my own money isn’t the government doing me a solid it’s keeping more of what I earned.

I guess I just approach it from a different standpoint than you do. My default position is the government takes far too much money from someone like myself and should spend far less instead so when an opportunity to keep more of my money arises I see it as what should have happened in the first place not a favor or a bonus.

Also, the government isn’t doing it because they are pals Or because they want rich dicks to have fancy electric cars while the average guy picks up the tab. The reason for the tax credit is EV’s are the vehicle of the future but they are too expensive today.

The only people who CAN buy them are people with money to burn on frivolity. In order for technology to advance to the point where your average consumer can afford an EV and to where EV battery technology is a viable replacement to ICE for most people companies need to innovate.

In a “free” market the only innovation that takes place is when there is a financial incentive to do so. The incentive right now is that the vehicles are attractive enough to the people buying them and the government credit just opens that door to more people. That’s why the rules changed this past year. There are enough companies invested in BEVs now that the government is trying to force manufacturers to lower prices and cut costs.

In a capitalist society incentive can only be positive. So you have to create financial incentives to make the behavior you want. I am making clear this isn’t intended to be political or in favor of one party or another just trying to explain why the incentive exists.

Completely agree with your third, fourth and fifth paragraphs. Regarding your sixth paragraph, financial incentives in a capitalist society can be negative financial incentives and also highly effective in influencing behavior, e.g., cigarette taxes.

 

[DTown3011]

Just to make sure I'm tracking - when you say 2023, you mean for tax year 2023 (that you will file in 2024)? That is/was/will be my plan.

That's correct. I will claim it on my 2023 return which I will file in 2024.

 

[Donald Stanfield]

Completely agree with your third, fourth and fifth paragraphs. Regarding your sixth paragraph, financial incentives in a capitalist society can be negative financial incentives and also highly effective in influencing behavior, e.g., cigarette taxes.

You're right. I didn't consider taxes.

 

[Alchemy8279]

It’s not really a subsidy if the only people who qualify for it are taking it off their personal tax bills IMO. Me keeping my own money isn’t the government doing me a solid it’s keeping more of what I earned.

I guess I just approach it from a different standpoint than you do. My default position is the government takes far too much money from someone like myself and should spend far less instead so when an opportunity to keep more of my money arises I see it as what should have happened in the first place not a favor or a bonus.

Also, the government isn’t doing it because they are pals Or because they want rich dicks to have fancy electric cars while the average guy picks up the tab. The reason for the tax credit is EV’s are the vehicle of the future but they are too expensive today.

The only people who CAN buy them are people with money to burn on frivolity. In order for technology to advance to the point where your average consumer can afford an EV and to where EV battery technology is a viable replacement to ICE for most people companies need to innovate.

In a “free” market the only innovation that takes place is when there is a financial incentive to do so. The incentive right now is that the vehicles are attractive enough to the people buying them and the government credit just opens that door to more people. That’s why the rules changed this past year. There are enough companies invested in BEVs now that the government is trying to force manufacturers to lower prices and cut costs.

In a capitalist society incentive can only be positive. So you have to create financial incentives to make the behavior you want. I am making clear this isn’t intended to be political or in favor of one party or another just trying to explain why the incentive exists.

This! Better than I could have said it. I am not against taxes but to say that the people who pay the majority of the taxes in this country shouldn’t get a break for assisting in advancing a technology, in a sector that needs a seismic shift, is not considering of the whole of our tax system.

Many other incentives to advance technology and energy independence are not income limited, ie solar.

I have newer cars and didn’t get to take advantage of cash for clunkers. That was a move to attempt to stimulate the economy and possibly for the environment, fine.

For anyone to say I shouldn’t get $7500, when I pay my full share every year is simply silly.

 

[moosetags]

All of my life I have paid in plenty. Now comes one tax advantage that I can take. I am afraid that I am going to miss out on this because of where I live. Even though I am a very early adopter (November 28, 2018), Rivian will not sell me a vehicle because I am over 300 miles from the nearest Service Center. My current estimated delivery date is just 2024. This most likely means 2025 or later. Even though I did sign the "binding contract to purchase", I don't know how it will apply in tax year 2025. By that time, buying an electric vehicle may move you to a higher tax bracket.

Brian

 

[JKDU]

Given the March 2023 extension, do you physically have to take delivery of the vehicle by this time to still get the $7,500 EV credit (I'm under the income limit and my R1S is just under $80,000) or does completing most or all of 8 steps process count?

I ask because my account page says April-June 2023 delivery but, like so many others, just got my email to confirm configuration and just got assigned a guide. I've read where others have been assigned a VIN and was all ready to receive their vehicle but then got cancelled for various reasons like failed QC and now they have to wait months to get their vehicle. So what if I get assigned a delivery date in late March but then Rivian says it failed QC and they need to assign a new vehicle and will take 3 more months? Would I still be able to qualify?

Thanks in advance for your thoughts.

 

[electruck]

Given the March 2023 extension, do you physically have to take delivery of the vehicle by this time to still get the $7,500 EV credit (I'm under the income limit and my R1S is just under $80,000) or does completing most or all of 8 steps process count?

I ask because my account page says April-June 2023 delivery but, like so many others, just got my email to confirm configuration and just got assigned a guide. I've read where others have been assigned a VIN and was all ready to receive their vehicle but then got cancelled for various reasons like failed QC and now they have to wait months to get their vehicle. So what if I get assigned a delivery date in late March but then Rivian says it failed QC and they need to assign a new vehicle and will take 3 more months? Would I still be able to qualify?

Thanks in advance for your thoughts.

No. Going forward, I fully expect that eligibility will be based on the date you actually take ownership of the vehicle.

 

[DTown3011]

No. Going forward, I fully expect that eligibility will be based on the date you actually take ownership of the vehicle.

On the form to the IRS, you have to fill out both the VIN# and the date you put the vehicle into service so you actually have to be in possession of the vehicle to qualify.

 

[Jac]

Given the March 2023 extension, do you physically have to take delivery of the vehicle by this time to still get the $7,500 EV credit (I'm under the income limit and my R1S is just under $80,000) or does completing most or all of 8 steps process count?

I ask because my account page says April-June 2023 delivery but, like so many others, just got my email to confirm configuration and just got assigned a guide. I've read where others have been assigned a VIN and was all ready to receive their vehicle but then got cancelled for various reasons like failed QC and now they have to wait months to get their vehicle. So what if I get assigned a delivery date in late March but then Rivian says it failed QC and they need to assign a new vehicle and will take 3 more months? Would I still be able to qualify?

Thanks in advance for your thoughts.

I found this summary of the current federal EV tax credit situation published by National Public Radio today to be the clearest thorough explanation yet:

https://www.npr.org/2023/01/07/1147209505/electric-car-tax-credit-climate-bill-tesla-volkswagen-ev

 

[electruck]

On the form to the IRS, you have to fill out both the VIN# and the date you put the vehicle into service so you actually have to be in possession of the vehicle to qualify.

Correct. I tend to think of those dates as being the same but that is not technically the case when contracts and payment are completed in advance of delivery. Delivery implies ownership but ownership does not imply delivery. For most people those dates shouldn't be too far apart but we've seen issues with vehicles in transit that resulted in a significant gap.

 

[DTown3011]

Here is my issue - The current IRS provisions don't account for my situation - I didn't do either of the scenarios they explain on their site. I entered in a written biding contract before August 16th, 2022 and will take delivery after January 1 in 2023. Per the site, neither of their scenarios apply to me:

Purchase date vs. delivery date​

​

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. (I am not taking possession before January 1, 2023)​

​

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. (I didn't purchase a vehicle between Aug 16 and Dec 31, I purchased one BEFORE Aug 16)​

My understanding is that none of this applies before the Inflation Reduction Act became law on August 16th. I acquired my written binding contract before the IRA became law which means I should still be able to claim it on my 2023 return. Mine is signed August 10th:

The Inflation Reduction Act offers some relief for EV buyers who have written, binding sales contracts from this year to purchase EVs that will be placed in service or delivered on, or after, August 16, 2022, or in 2023.​

​

Consumers who acquired a “written binding contract” to purchase a qualified EV before the Inflation Reduction Act became law (on August 16, 2022) will be able to apply under the previous tax credit requirements.​

​

If you purchased an eligible EV or PHEV prior to August 16, 2022, the tax credit should still be valid on your 2023 income taxes even if that vehicle is no longer on the approved vehicle list. Even if you have a written binding sales contract prior to August 16 but take delivery of the vehicle in 2023, the older rules of the tax credit should still apply.​

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