Update 8/16 from IRS: 2022 purchases are eligible under old tax credit

[SASSquatch]

Well, shit. If electrek is wrong about this I’ll delete this thread. It’s frustrating to see so many different and incorrect interpretations of the rules being posted as articles. Leave the speculation to the forums .

sure seems like a PBA is the failsafe we all need regardless of 2022 or 2023 orders.

I think Eectrek was being sloppy in their summary. I think the big push to get the binding agreements in place is because that is the only way to get people currently in the reservation process to qualify under the current unrestricted income and price cap qualification.

RIVIAN must follow Fiskers lead on this and offer reservation holders the option to sign binding agreements. Time is off the essence. The bill is likely to be signed this coming weekend after the house passes it.

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[Killer95Stang]

So... say I land under the married combined income limits and my configured R1S is priced out at $80,250.00' is it as simple as dropping spare tire to bringme under $80k? Not that I need the $7500.00, but why not take it.

Also, before someone says I can't afford it, I manage to live in Los Angeles County with a paid off mortgage and no car payments... basically debt free. Been working since the age of 11 and have no problem paying for it.

 

[Cavalryscout18]

Why not just let us (who are buying no matter what) sign a “purchase agreement” now. Then, once the dust settles, we are either still eligible for the old tax credit and are good or we don’t qualify under the new one and we are back to the same spot. But that’s better than doing nothing and just waiting for the new one. It’s kind of a no-loss situation, right? Unless you sign the purchase agreement and then change your mind later but then that’s on you.

 

[3l3c7r1c]

I signed my pre-purchase agreement with Rivian in April when I thought I was just about to get my R1S. It sounds like that puts me under the current rebate program as long as I get my car this year or next right? I'm back within my delivery window so fingers crossed it'll be in the next 2 months

I am on the same boat and wondering whether PBA is considered as binding agreement.

 

[Batman]

One thing I just recently read related to this, is you no longer have to file for the tax credit. They take it off at the time of purchase. Which is great!

 

[Jac]

So... say I land under the married combined income limits and my configured R1S is priced out at $80,250.00' is it as simple as dropping spare tire to bringme under $80k? Not that I need the $7500.00, but why not take it.

Also, before someone says I can't afford it, I manage to live in Los Angeles County with a paid off mortgage and no car payments... basically debt free. Been working since the age of 11 and have no problem paying for it.

Under the law to be signed in coming days, if there is a chance your R1S doesn’t get delivered to you until 2023, despite the fact you are under the new law’s MSRP cap and are under the new law’s income cap, the new law requires Rivian’s batteries to satisfy certain minerals source and battery component source tests beginning in 2023. We don’t know if Rivian’s batteries will qualify us for any tax credit in 2023. If Rivian allows us to sign binding purchase agreements this week before the new law is signed, the current tax credit rule will apply to our 2023 R1S delivery.

 

[Killer95Stang]

Under the law to be signed in coming days, if there is a chance your R1S doesn’t get delivered to you until 2023, despite the fact you are under the new law’s MSRP cap and are under the new law’s income cap, the new law requires Rivian’s batteries to satisfy certain minerals source and battery component source tests beginning in 2023. We don’t know if Rivian’s batteries will qualify us for any tax credit in 2023. If Rivian allows us to sign binding purchase agreements this week before the new law is signed, the current tax credit rule will apply to our 2023 R1S delivery.

I was under the impression that the battery requirement would be extended until 2024, to give auto makers enough time to reach compliance. "Sign the bill, so we can tell you what is in".

 

[Jac]

I was under the impression that the battery requirement would be extended until 2024, to give auto makers enough time to reach compliance. "Sign the bill, so we can tell you what is in".

I have seen posts speculating (wishing/hoping) about that but nothing verified. My understanding is the details of how the battery minerals sourcing and battery component sources measures will work are to developed by around year end 2022. The battery requirements go into place In 2023 and become more stringent with each successive year, e.g., 40% until 1/1/24.

 

[Killer95Stang]

I have seen posts speculating (wishing/hoping) about that but nothing verified. My understanding is the details of how the battery minerals sourcing and battery component sources measures will work are to developed by around year end 2022. The battery requirements go into place In 2023 and become more stringent with each successive year, e.g., 40% until 1/1/24.

I bet just about every company has scrambled to get batteries anywhere they could, due to supply shortages. Choosing to meet compliance and being able to survive are two different things.

 

[Autolycus]

I have seen posts speculating (wishing/hoping) about that but nothing verified. My understanding is the details of how the battery minerals sourcing and battery component sources measures will work are to developed by around year end 2022. The battery requirements go into place In 2023 and become more stringent with each successive year, e.g., 40% until 1/1/24.

One slight nit to pick on the timing of the battery content requirements: They go into effect once Treasury (and other relevant regulatory agencies) issue guidance (i.e. implementing regulations). Treasury must issue that guidance by January 1, 2023. The requirements do get stricter on 1/1/24 and again at later dates.

 

[jjswan33]

One slight nit to pick on the timing of the battery content requirements: They go into effect once Treasury (and other relevant regulatory agencies) issue guidance (i.e. implementing regulations). Treasury must issue that guidance by January 1, 2023. The requirements do get stricter on 1/1/24 and again at later dates.

This is also why I expect the current credit will stay as is for the rest of 2022. I know the consensus here is that electrek is wrong with their analysis but there are several passages that relate to this applying to vehicles brought into service in 2023, but I did not read the whole thing so

If they change it mid year its going to create all sorts of headaches for tax filing next year, additional documentation requirements, etc. For my sake with 2 credits coming this year under the old law that would be a pain.

 

[mabowden]

I think this summary is misleading. If you don't purchase a vehicle in 2022 before Biden signs the legislation, you are not eligible for the $7,500 credit under the old rules.

The Electrek summary makes it sound like if you buy an R1T any time in 2022 you are covered - that is not how I interpret the changes.

In order for you to qualify for the old 7,500 credit without income/price restrictions you must:

1. Have already purchased and received delivery of an EV in 2022 prior to the enactment of the legislation
2. Have a binding purchase agreement for an EV signed BEFORE the legislation is signed by the president that you will take delivery of in 2022 or 2023.

Came here to say this.

I was under the impression that once the president signs this bill, the new rules go into effect immediately unless you have already signed a binding agreement.

Hopefully Rivian makes some quick changes this week, but I honestly do not think it is in their best interest to do so...

The $3750 is a big question mark for those who meet the income requirements. The whole thing is gone for those who don't. Not a great place to be in.

Would have been nice if they had a run out period of like a year before the new changes go into force.

 

[mikehmb]

From a cursory reading of the text of the new law, any vehicle that goes into service after Dec 31, 2022, is going to fall under the new requirements.

I’m neither a lawyer nor a legislator, but unless I’m reading something fundamentally wrong (and I hope I am), then we simply need our trucks prior to the end of the year to qualify for the current incentives and the income cap restrictions therein.

A purchase agreement isn’t going to cut it, despite what Fisker put out there.

Again, I hope I’m wrong. My delivery window is currently Nov/Dec 2022. That $7500 buys me a nicely spec’d XC bike.

 

[Deacon]

According to this post from Reddit, Rivian will "probably?" meet the battery requirement.
“Unofficial” 2023 U.S. Federal Clean Vehicle Tax Credit : electricvehicles (reddit.com)

 

[Smithery]

I think this summary is misleading. If you don't purchase a vehicle in 2022 before Biden signs the legislation, you are not eligible for the $7,500 credit under the old rules.

That's not true, and Elektrek *is* correct.

The changes to the EV tax rebate structure go into effect Jan 1 2023.

So any purchase completed by Dec 31 2022 follows the old structure.

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