I ordered my Mini Cooper SE in April of this year....it is in transit, but not sure when I will actually get the vehicle. I have been told there is no way to qualify for the $7500 rebate, but given that I need a car, mine will be here soon and it won't cost me much to run for the next 3-5 years I plan to own it, I will finish paying for it anyway and happily drive it for the time being.
Deposits (of any kind) are not a necessary element of a binding contract. See comment #110 for more on this. The IRS posted guidelines on what they consider indications of a binding contract, and among that was a 5% non-refundable deposit, but that's their own guidelines, not law. If you claim the tax credit without meeting their guidelines, they might question it, and it might have to be argued in court, but contract law has a fairly robust body of precedent upon which to make an argument in favor of the tax credit. And only if you're audited... many people claiming the credit may not get questioned on it at all (this is not permission to falsely claim a credit, btw). You claim the credit on the taxable year the vehicle was "put into service". And this date can be rolled back to a certain date in 2022 for tax purposes (regardless of the actual "put into service" date) for those with a binding written contract to purchase prior to the IRA being signed into law.
How does such reasoning interact with the instructions for the relevant IRS form? "Generally, you can rely on the manufacturer’s (or, in the case of a foreign manufacturer, its domestic distributor’s) certification to the IRS that a specific make, model, and model year vehicle qualifies for the credit and, if applicable, the amount of the credit for which it qualifies. The manufacturer or domestic distributor should be able to provide you with a copy of the IRS letter acknowledging the certification of the vehicle. If, however, the IRS publishes an announcement that the certification for any specific make, model, and model year vehicle has been withdrawn, you cannot rely on the certification for such a vehicle acquired after the date of publication of the withdrawal announcement."
In Sweden all subsidies for EVs were taken away on the 8th of November. Cars ordered before that date still qualify, however. There was no warning issued before this decision. It was motivated by saying that "the price on EVs is now comparable to the price on other vehicles"... :-(
From the most recent version of Form 8936 (issued 01/2022). Still current as of 08/26/2022. https://www.irs.gov/forms-pubs/about-form-8936
well to be fair, it is THIS administration that made it so complex. It was VERY easy before. And before anyone asks - I don't think there should be ANY tax incentives. If this tech is going to work, it should stand on its own. That being said, I have and will take advantage of any tax advantages I can as long as they are available.
No need to make it political in this forum. “This” administration had a very good plan before this was rushed through. Interesting that “this” administration is doing something to make the USA great again but is eating **** for it anyway.
From was issued January, new law was instituted August. My guess is the form probably wont change for a while.
"New" tech is never going to have universal usage on its own. Most people are unwilling to try something "new" unless there is some incentive. It's a shame that you are against the incentive, but are willing to take it anyway.
Just FYI, the IRS page linking to that form was updated after the IRA was passed. IOW, I think you're right, i.e., if they'd wanted to change the form/its accompanying guidance, they had their chance but passed.
Why? I would not have an EV without it. I prefer the driving experience in my gas cars far more, but the financial savings are great. Once those financial savings are gone, gone will also be any desire to drive an EV. We really are not helping the environment (just shifting pollution to China) and we don't have the infrastructure to support EV widespread. This is all just politics.
In contrast, I ordered the SE knowing that the Solterra that I had on order wouldn't qualify for a tax credit, and that the SE would fit my needs *and* be cheaper than the Solterra would have been even if $7500 was deducted from its price. So, if Warnock's bill passes, I get lucky. And if it doesn't, I'm still lucky because I have an SE rather than a heavy, slow charging, Solterra that is 95% Toyota. And if the Texas power grid goes offline this winter, well, I'll just go back to riding my mountain bike to work.
I think this was valid criticism of the program. It appears to be effectively increasing investment in this country in the way of mining and battery/vehicle assembly plants, but the consumer side of it is a bit of a mess. Speaking with a GM spokesperson, for instance, I was told they don't even know which vehicles will achieve eligibility yet because it's waiting on the treasury department: “We are waiting on full Treasury guidance to determine vehicle eligibility. We will have more updates after the implementing guidance is finalized in the coming months.” Politics is inherently part of car buying and ownership. Governments set regulations, taxes, and incentives. I think everyone, regardless of political persuasion, would be happy if we mention government when it makes sense, but not with vitriol and in a super partisan kind of way. I did remove one more political type comment here to help keep the thread on topic, but I don't like doing that so I hope this note helps.
Very well said. It is simply a mess as you said. Things dont have to be difficult or complicated to work!