True or False: BPA only valid for 2022 and 2023 deliveries, invalid for 2024 and beyond?

[McMoo]

I would think one of the hurdles would be to actually fill out your tax return. The existing credit is on a specific form (or whatever it's called, to lazy to look it up). Now we will have to wait and see what the IRS does with the new bill. And if/how the existing form lives into the future. Or is my thinking wrong?

The vehicle is deemed to be in service on the day before the law is signed by the president under the transition rule. So a 2022 amended return may be necessary depending on when the vehice is deliveries since a VIN is required.

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[Arky]

Lot of rumors and speculation regarding the BPA. I've heard some mention the BPA will only be valid for 22/23 deliveries and invalid beyond that. Any truth to that and if so is there a source?

By my read, the text of the transition rule is pretty clear (at least from my amateur lawyer/non professional view)

(l) TRANSITION RULE.—Solely for purposes of the
19 application of section 30D of the Internal Revenue Code
20 of 1986, in the case of a taxpayer that—
21 (1) after December 31, 2021, and before the
22 date of enactment of this Act, purchased, or entered
23 into a written binding contract to purchase, a new
24 qualified plug-in electric drive motor vehicle (as de25 fined in section 30D(d)(1) of the Internal Revenue
403
ERN22410 5DM S.L.C.
1 Code of 1986, as in effect on the day before the date
2 of enactment of this Act), and
3 (2) placed such vehicle in service on or after the
4 date of enactment of this Act,
5 such taxpayer may elect (at such time, and in such form
6 and manner, as the Secretary of the Treasury, or the Sec7 retary’s delegate, may prescribe) to treat such vehicle as
8 having been placed in service on the day before the date
9 of enactment of this Act.

There is no end date on when the vehicle must be placed into service, and establishing an end date would be a fundamental change to the law, beyond what the Treasury or IRS could legally do.

What they *could* do though is clarify what is really meant by a "binding contract to purchase". Our contract language in the BPA is very vague, and one could consider a binding contract as requiring a full description of contract terms (in the case of a vehicle, something like the actual price, description and VIN.) I could easily see them doing this, but adding a 'grace period' through the end of 2022. The intent was to not disrupt vehicles in delivery, not leave a hole in the law large enough to literally drive a truck through.

 

[sk00pie]

By my read, the text of the transition rule is pretty clear (at least from my amateur lawyer/non professional view)



There is no end date on when the vehicle must be placed into service, and establishing an end date would be a fundamental change to the law, beyond what the Treasury or IRS could legally do.

What they *could* do though is clarify what is really meant by a "binding order to purchase". Our contract language in the BPA is very vague, and one could consider a binding contract as requiring a full description of contract terms (in the case of a vehicle, something like the actual price, description and VIN.) I could easily see them doing this, but adding a 'grace period' through the end of 2022. The intent was to not disrupt vehicles in delivery, not leave a hole in the law large enough to literally drive a truck through.

makes sense thanks! Side note just test drive one and fell in love.

 

[Warmoth]

Source: BILLS-117hr5376eas.pdf

It's possible the 2023 and 2024 date limitation or cutoff circulating on the forum is coming from the following provision (Pages 381-382), and is attributed to persons not reading the full text (Bold is emphasized to show the potential misread):

‘‘(7) EXCLUDED ENTITIES.—For purposes of this section, the term ‘new clean vehicle’ shall not include— ‘‘(A) any vehicle placed in service after December 31, 2024, with respect to which any of the applicable critical minerals contained in the battery of such vehicle (as described in subsection (e)(1)(A)) were extracted, processed, or recycled by a foreign entity of concern (as defined in section 40207(a)(5) of the Infrastructure Investment and Jobs Act (42 U.S.C. 18741(a)(5))), or ‘‘(B) any vehicle placed in service after December 31, 2023, with respect to which any of the components contained in the battery of such vehicle (as described in subsection (e)(2)(A)) 382 were manufactured or assembled by a foreign entity of concern (as so defined).’’.

This provision, however, pertains tot he mineral and component requirement, not when the vehicle is actually put in service as it pertains to the transition rule. The transition rule (pages 393-394) is an exception to the new law.

"(l) TRANSITION RULE.—Solely for purposes of the application of section 30D of the Internal Revenue Code of 25 1986, in the case of a taxpayer that (1) after December 31, 2021, and before the date of enactment of this Act, purchased, or entered into a written binding contract to purchase, a new qualified plug-in electric drive motor vehicle (as defined in section 30D(d)(1) of the Internal Revenue Code of 6 1986, as in effect on the day before the date of enactment of this Act), and (2) placed such vehicle in service on or after the date of enactment of this Act, such taxpayer may elect (at such time, and in such form and manner, as the Secretary of the Treasury, or the Secretary’s delegate, may prescribe) to treat such vehicle as having been placed in service on the day before the date of enactment of this Act."

How the credit will be applied for will depend on how the Secretary prescribes (Bold above for emphasis). While no expert, but I did stay in a Holiday Inn and watch lots of law and order, I would assume the form to apply for the tax credit will be modified and in the year you do receive your R1X, you would complete the form and possibly have to submit proof of the binding contract.

 

[balinkd]

So quick question. House votes on the bill today. When will it hit the President's desk for formal signature and enactment/law? From my understanding the bill will start a process near midnight to formalize after the vote, etc.

Just wondering when the likely last date for a signature on a BPA will be. I rushed into an order after figuring out the particulars so still waiting on a BPA.

Thanks to any civics majors out there!

 

[CharonPDX]

Assume today's your last chance. It's Friday, there's a good chance it will hit the president's desk today (the vote was passed) and he might sign it today to get some good press before the weekend.

If not today, then almost certainly on Monday.

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