Hello, I placed my order for 23 SE on 3/31/2022 and will be receiving it on this September. I just saw the news about new rules regarding Federal Tax credit. I havent signed any paper work with Mini yet but I paid my deposit and got following 2 papers from dealer. This is only documents i got from the dealership. https://imgur.com/a/dEdDJ7h https://imgur.com/a/zsUt9ZC The new rule specifically states "written binding contract". Will I be able to receive the FED credit? I wouldnt buy this car if the credit wasnt there.
Same! I don't think we can get the credit. Does your state offer an EV incentive? If so, would you still consider your SE? I still plan to purchase mine.
I just got a email from dealer saying that last link is the purchase agreement. I think this should count as written binding contract and it shows dates on bottom
I think folks are not 100% sure whether that agreement will be enough. After all, no one has done their 2022 taxes yet... The language the bill uses so far is not super clear. No official clarification yet either... I guess now it just depends on how much you like the Mini SE...
Sewell is Dallas area IIRC, so I think it will depend on the definition of “binding contract” in Texas. I placed an order in TX shortly after you and believe I have a shot at it. Still waiting to hear from my CPA. If you research the definition it doesn’t appear to have any “gotchas” like 5% down or “non-refundable” as in the bill and guidance. I would encourage everyone to run this by their CPA.
We will do that too! I ordered mine mid March and the vessel just arrived at a NYC/NJ port. Finally! In a week or so my SE should be at the dealership. Really hoping I get some answers before then...
Good luck with that one. CPAs are not getting any better information on the legal definition of a binding contract. If you consult a lawyer you may not get an answer that is much better since each contract is different, and the caselaw may not be very helpful in this case. The IRS needs to come out with something black and white like a cut off date with words like "order" "deposit" "refundable" "nonerfundable" etc so one can check the box. Order - yes go to deposit Deposit - yes go to next Nonrefundable - Yes, go to next Requirements of nonrefundable - can it be applied to a different car? go deeper and either allow or disallow credit. Refundable - Either allow credit or disallow
Tommy is right. My CPA just told me that hes not sure if it will apply. CPA points at car dealership and dealership points at CPA. IRS need to elaborate more like Tommy said. Cant believe i am paying service for both of them though haha.. they are no help.Id rather pay commission to you all in rhis thread. Happy weekend!
That's probably for internal IRS use only. In my opinion, the written binding contract was intended to prevent sham transactions rather than refute economic substance.
I don't think CPAs are going to know much. A tax attorney is probably your best bet if you want a legal opinion on what does or does not constitute a "written binding contract to purchase". But even then, it probably won't be a definitive answer; just what would be defensible in court (if it ever got that far). It's just too early, the legislation is too new, and it doesn't bother to define the term itself. I will say [not anything close to a lawyer], that it seems you and the dealer have made written arrangements to purchase a vehicle being built specifically for you. In my opinion, that's the kind of "in process" transaction the transition rule is supposed to cover. I'd say by claiming the tax credit, at bare minimum you'd be operating within the spirit of the law. Is that going to cause problems down the line? Nobody is going to know for sure until we get there.
Give this thread a read. https://www.insideevsforum.com/community/index.php?threads/will-my-se-still-quality-for-tax-credit.14490/
So. I called BMW MINI USA. Talked to the customer service and explained what the new IRS rules are.. and they dont know what is going on. I asked them if i could get a written contract but they told me to talk to the dealer and dealer doenst want to deal with this. None is taking initiative on this matter. I got even tossed to their technology department ( department where they fix their blutooth connections LOL) and had to explain the IRS change again and then i got tossed to their customer service again. Wasted good 30 mins I think people need to start o start calling mini and make complaints and concerns so that their management know what the ****s going on!! MINI is still advertising 7500 tax credit on their website. this is outrageous.
This is the active thread on this topic. https://www.insideevsforum.com/community/index.php?threads/will-my-se-still-quality-for-tax-credit.14490
