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Green car reports broke down which EVs would be eligible for the federal tax credit under the Inflation Reduction Act and the Mach-E made the shortlist.


EVs that will likely qualify in 2023 on price and assembly point in 2023 (before tighter supply-chain rules):

Chevrolet Bolt EV (with the lifting of the 200,000-vehicle cap)
Ford Mustang Mach-E
Ford E-Transit
Ford F-150 Lightning
Nissan Leaf
Volkswagen ID.4
Tesla Model 3 (with the lifting of the 200,000-vehicle cap)
Tesla Model Y (with the lifting of the 200,000-vehicle cap)
 

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This is the IRS's update from today:
Yep IRS clarified that for the rest of 2022 nothing changes except EV must be “Assembled in North America”. All the other existing rules still apply and all the new rules only take effect in 2023.
 

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If I read that correctly, if you have ordered a Mach E and delivery takes place after 12/31/2022, you can keep the current $7,500 only if you have a binding contract, based on state law and a minimum non-refundable deposit of at least 5% of the sale price.

Interestingly, I just saw, in a video, a Lucid customer convert his reservation to an order with making a $300 deposit non-refundable. It's going to be a big surprise that Lucid's assurance that he will get the credit for his 2023 delivery is just hot air. I hope that any Ford Mach E and Lightning 2023 customers are not similarly disappointed. Mach E customer might get only $3750, and the Lightning customer might get $3750 or nothing if over $80,000. (I'm not considering the possibility that the "old" credit might have been cut in half under the 200,000 rule.)
 

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If I read that correctly, if you have ordered a Mach E and delivery takes place after 12/31/2022, you can keep the current $7,500 only if you have a binding contract, based on state law and a minimum non-refundable deposit of at least 5% of the sale price.

Interestingly, I just saw, in a video, a Lucid customer convert his reservation to an order with making a $300 deposit non-refundable. It's going to be a big surprise that Lucid's assurance that he will get the credit for his 2023 delivery is just hot air. I hope that any Ford Mach E and Lightning 2023 customers are not similarly disappointed. Mach E customer might get only $3750, and the Lightning customer might get $3750 or nothing if over $80,000. (I'm not considering the possibility that the "old" credit might have been cut in half under the 200,000 rule.)
I think the current IRS guidance aligns with your reading of it. Even though the IRA was passed in the middle of the 2022 tax year, only the change "Assembled in North America" was instituted immediately and for the rest of 2022 nothing else changes. Thus for folx interested in buying a Mach-E in 2022 nothing changed. BUT for anyone who buys a Mach-E in the coming years 2023, 2024 etc, the same guidance that was used previously still applies, that the tax incentive is based upon the date the car was "put into service".

Thus, it appears that just as was the case previously, if you order a car in 2022 but buy it/receive it (put into service) in 2023 or 2024, the incentives present or absent in that calendar year will then apply. Under the old version of the law, everyone taking possession of a Ford EV in 2023 would have no longer received the full $7500 due to phase out after Ford reached sales of 200k, while the 200k cap will be removed under the new language, the other requirements may lead to the same outcome. That may be the case under the new language adopted yesterday, unless a waiver is provided for some aspect, e.g. perhaps for battery parts or minerals.

But as you say, it does appear the Transition Rule as written will permit binding sales contracts with non refundable deposits of at least 5% to be treated as the day "put into service" for EVs purchased before August 16th.

If they guaranteed to their customers that it would work (might have not, but did the opposite and said "may not work") Lucid may decide they need to honor the spirit of those binding contracts they established with existing order holders and provide the full $7500 themselves. I believe another manufacturer had said they would do so, but forget if it was Fisker(?) or someone else.
 

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The US Dept of Energy website where it always listed which EVs and PHEVs qualified for the IRS EV tax credit, now has a new list with the expected vehicles that will meet the "Assembled in North America" requirement which is now in effect. The list includes cars currently on the market and are listed by their manufacturer's label as being 2022 or 2023 model years.

DOE list of EVs that qualify for Assembled in North America
 

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I think the current IRS guidance aligns with your reading of it. Even though the IRA was passed in the middle of the 2022 tax year, only the change "Assembled in North America" was instituted immediately and for the rest of 2022 nothing else changes. Thus for folx interested in buying a Mach-E in 2022 nothing changed. BUT for anyone who buys a Mach-E in the coming years 2023, 2024 etc, the same guidance that was used previously still applies, that the tax incentive is based upon the date the car was "put into service".

Thus, it appears that just as was the case previously, if you order a car in 2022 but buy it/receive it (put into service) in 2023 or 2024, the incentives present or absent in that calendar year will then apply. Under the old version of the law, everyone taking possession of a Ford EV in 2023 would have no longer received the full $7500 due to phase out after Ford reached sales of 200k, while the 200k cap will be removed under the new language, the other requirements may lead to the same outcome. That may be the case under the new language adopted yesterday, unless a waiver is provided for some aspect, e.g. perhaps for battery parts or minerals.

But as you say, it does appear the Transition Rule as written will permit binding sales contracts with non refundable deposits of at least 5% to be treated as the day "put into service" for EVs purchased before August 16th.

If they guaranteed to their customers that it would work (might have not, but did the opposite and said "may not work") Lucid may decide they need to honor the spirit of those binding contracts they established with existing order holders and provide the full $7500 themselves. I believe another manufacturer had said they would do so, but forget if it was Fisker(?) or someone else.
Couple of observations:

Starting in 2023 there will be a price cap in place. I doubt Lucid and most MachE will qualify.

Here is copy of IRS form 8936 and instructions.

IRS has historically ruled that the date the car is registered, is the day it is put into service, line 3 form 8936, not the date of manufacturer, date of contract or date of invoice to the dealer applies.

I think those that are putting down today non refundable deposits, when it comes time to claim the rebate on Form 8936 will be severely disappointed.

see: https://www.irs.gov/pub/irs-pdf/i8936.pdf

and

see: https://www.irs.gov/pub/irs-pdf/f8936.pdf
 

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This website seems quite helpful in explaining the tax credit - assuming I am reading it correctly. Read the info in the red box. Then, if you search the table below that, it indicates that the MME qualifies for the full $7,500 under the new tax program. Federal Tax Credits for Electric and Plug-in Hybrid Cars
 

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This website seems quite helpful in explaining the tax credit - assuming I am reading it correctly. Read the info in the red box. Then, if you search the table below that, it indicates that the MME qualifies for the full $7,500 under the new tax program. Federal Tax Credits for Electric and Plug-in Hybrid Cars
Qualifies, yes, but the size of the credit depends on the source of the batteries, depending on how the Secretary implements the rules. Initial reading indicates a $3,750 credit based on battery manufacture. The other half based on mineral sourcing is problematic,
 

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Qualifies, yes, but the size of the credit depends on the source of the batteries, depending on how the Secretary implements the rules. Initial reading indicates a $3,750 credit based on battery manufacture. The other half based on mineral sourcing is problematic,
It's all kind of confusing and I'm not sure what to trust. However, this IRS publication indicates that as long as the vehicle is assembled in North America and meets the former manufacturing cap requirement (200,000 vehicles), the old rule applies until the end of this year. I'm printing this document and saving it for tax time! (I will be picking up my new MME next week.) Plug-In Electric Vehicle Credit IRC 30 and IRC 30D | Internal Revenue Service

Vehicles Purchased and Delivered between August 16, 2022 and December 31, 2022

If you purchase and take possession of a qualifying electric vehicle after August 16, 2022 and before January 1, 2023, aside from the final assembly requirement, the rules in effect before the enactment of the Inflation Reduction Act for the EV credit apply (including those involving the manufacturing caps on vehicles sold). If you entered into a written binding contract to purchase a new qualifying vehicle before August 16, 2022, see the rule above.
 

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I believe all EMV’s should be available for a tax credit both in Canada as well as the United States, both our leaders talk about the carbon emissions but when it come to the working man and ladies there is no government benefit for us.
Since you used the word "believe" I was not completely sure if you were stating that you think all EVs ARE STILL able to receive a tax credit in both countries OR that you know they no longer are in the US but your opinion is that they SHOULD STILL be able to receive a tax credit. I'm going to predict it's the latter.

I'm guessing the arguments that might be made for changing the old language of the IRS tax credit to that in the new legislation, could include that 12 years of helping very wealthy people buy very expensive EVs, and helping manufacturers sell very expensive EVs, is perhaps long enough? But instead of just letting the program end soon, as many conservative politicians and Americans desired, its goals have changed to become a longterm effort to bring battery production to North America for national security as well as climate and economic security, as well as encourage/support those North American manufacturers who are able to sell some slightly more affordable EVs.
 

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Fully agree with your comments as I would like to see more production in North America as well in all areas of production.
In regards to tax credits in North American I would like to see this across the board, however I believe that a sliding scale, more of a tax credit for the economical EV’s and less of a tax credit for the more expensive EV’s would be in the best interest for all.
 

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It's all kind of confusing and I'm not sure what to trust. However, this IRS publication indicates that as long as the vehicle is assembled in North America and meets the former manufacturing cap requirement (200,000 vehicles), the old rule applies until the end of this year. I'm printing this document and saving it for tax time! (I will be picking up my new MME next week.) Plug-In Electric Vehicle Credit IRC 30 and IRC 30D | Internal Revenue Service

Vehicles Purchased and Delivered between August 16, 2022 and December 31, 2022

If you purchase and take possession of a qualifying electric vehicle after August 16, 2022 and before January 1, 2023, aside from the final assembly requirement, the rules in effect before the enactment of the Inflation Reduction Act for the EV credit apply (including those involving the manufacturing caps on vehicles sold). If you entered into a written binding contract to purchase a new qualifying vehicle before August 16, 2022, see the rule above.
My post referred to the "new" tax credit. Your delivery next week still qualifies under the "old" tax credit for $7,500 (to the extent your 2022 tax liability allows) because it was built in North America.

Batteries are very much the issue for 2023 deliveries and beyond with the "new" credit. Only those with a qualified binding order prior to 8/16 as outlined by the IRS can opt for the "old" credit if it's better for them for a delayed delivery of a car built outside of North America after 8/16, or a Noth American truck/SUV over $80,000 delivered after 12/31/2022, for example.

Sadly, some Lucid and Rivian reservation holders were led to believe that simply converting their small reservation deposits before the 8/16 signing to non-refundable order deposits with a firm configuration, would meet the binding order requirement to keep the "old" credit. That was before the IRS issued guidelines that a binding order had to conform to state law and should have a minimum 5% non-refundable down payment.
 

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View attachment 8397

Green car reports broke down which EVs would be eligible for the federal tax credit under the Inflation Reduction Act and the Mach-E made the shortlist.


EVs that will likely qualify in 2023 on price and assembly point in 2023 (before tighter supply-chain rules):

Chevrolet Bolt EV (with the lifting of the 200,000-vehicle cap)
Ford Mustang Mach-E
Ford E-Transit
Ford F-150 Lightning
Nissan Leaf
Volkswagen ID.4
Tesla Model 3 (with the lifting of the 200,000-vehicle cap)
Tesla Model Y (with the lifting of the 200,000-vehicle cap)
With a $55,000 capon price, I don't think the Tesla Y would make it.
 

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With a $55,000 capon price, I don't think the Tesla Y would make it.
View attachment 8397

Green car reports broke down which EVs would be eligible for the federal tax credit under the Inflation Reduction Act and the Mach-E made the shortlist.


EVs that will likely qualify in 2023 on price and assembly point in 2023 (before tighter supply-chain rules):

Chevrolet Bolt EV (with the lifting of the 200,000-vehicle cap)
Ford Mustang Mach-E
Ford E-Transit
Ford F-150 Lightning
Nissan Leaf
Volkswagen ID.4
Tesla Model 3 (with the lifting of the 200,000-vehicle cap)
Tesla Model Y (with the lifting of the 200,000-vehicle cap)
With a cap on price of $55,000 I don't think the Model Y will make it.
 

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With a $55,000 capon price, I don't think the Tesla Y would make it.
I agree. And what I think is VERY interesting is the idea that a Tesla Model 3 might be considered a car while the Model Y would be a SUV. I think those two are the closest to identical models produced by anybody. They differ by so very little. I get that for sales purposes Tesla named their hatchback "SUV" just like Ford named the Mach-E hatchback "SUV" but will the folx (IRS, others) that provide the EV Tax Credit be so kind to go along with it? It will be very interesting, IMO particularly for Model 3 vs Model Y.
 
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