Anyone Else Place Last-Minute EV Orders to Lock In $7,500 Tax Credit?

[ridgebackpilot]

Because my income is too high to qualify for the Federal tax credit under the Inflation Reduction Act, and 70 percent of EVs currently on the market likely won't qualify either, I placed a couple of written, binding purchase orders this weekend.

Under the transition provisions of the bill (pp. 393-394), which President Biden will sign into law next week, anyone who enters "into a written binding contract to purchase" before the bill is enacted (signed) will have the option of taking the $7,500 income tax credit under the old rules, no matter when the vehicle is eventually delivered.

Because Ford isn't accepting new orders for the F150 Lightning (except from existing reservation holders), I reserved a 2023 Rivian R1T and immediately converted my reservation to a binding order. That makes $100 of my $1,000 deposit non-refundable ($900 of my deposit remains fully refundable).

I also converted my reservation for a 2023 Fisker Ocean to a binding purchase agreement. That means my $250 deposit is now non-refundable. I'm considering doing the same thing for a Genesis GV60, although so far they haven't been as responsive as the other companies.

In no case does a binding purchase agreement obligate me to actually complete the purchase. But if I decide to do that, at least I'll have the option of taking advantage of the existing $7,500 Federal income tax credit under the pre-IRA rules.

Anyone else convert their EV reservations to binding purchase orders this weekend in anticipation of the President signing the bill next week?

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[Garbone]

Did this in back April to lock in my price at time of order. Only getting a MachE though as most other makes are more expensive and if not they just kinda suck (Bolt)or are too small ( Bolt, Mini).

 

[NJ_MachE]

Because my income is too high to qualify for the Federal tax credit under the Inflation Reduction Act, and 70 percent of EVs currently on the market likely won't qualify either, I placed a couple of written, binding purchase orders this weekend.

Under the transition provisions of the bill (pp. 393-394), which President Biden will sign into law next week, anyone who enters "into a written binding contract to purchase" before the bill is enacted (signed) will have the option of taking the $7,500 income tax credit under the old rules, no matter when the vehicle is eventually delivered.

Because Ford isn't accepting new orders for the F150 Lightning (except from existing reservation holders), I reserved a 2023 Rivian R1T and immediately converted my reservation to a binding order. That makes $100 of my $1,000 deposit non-refundable ($900 of my deposit remains fully refundable).

I also converted my reservation for a 2023 Fisker Ocean to a binding purchase agreement. That means my $250 deposit is now non-refundable. I'm considering doing the same thing for a Genesis GV60, although so far they haven't been as responsive as the other companies.

In no case does a binding purchase agreement obligate me to actually complete the purchase. But if I decide to do that, at least I'll have the option of taking advantage of the existing $7,500 Federal income tax credit under the pre-IRA rules.

Anyone else convert their EV reservations to binding purchase orders this weekend in anticipation of the President signing the bill next week?

Won't you have to make the call soon as to whether you actually want to follow through on those purchases? The way I understand it, you'll have to take those tax credits for Tax Year 2022, so if in 2023 or later you back out, you'll have committed tax fraud (or at least will have to amend your return).

 

[Regulus7]

Does Fisker or Rivian give you a VIN with the binding order? The tax form requires a VIN. It’s an interesting idea. I don’t like the Rivian. But I should look at the Fisker. I got the $7500 last year and have $7500 with my Mach E which I took delivery last month… but hey could use a few more of those $7500 credits. Hehe

 

[ridgebackpilot]

Won't you have to make the call soon as to whether you actually want to follow through on those purchases? The way I understand it, you'll have to take those tax credits for Tax Year 2022, so if in 2023 or later you back out, you'll have committed tax fraud (or at least will have to amend your return).

No, I believe the tax credits accrue when you complete the purchase, not on the date you order the vehicle. By placing a binding purchase order now, I'm securing the right to take the tax credit at a later date.

 

[SWO]

Does Fisker or Rivian give you a VIN with the binding order? The tax form requires a VIN. It’s an interesting idea. I don’t like the Rivian. But I should look at the Fisker. I got the $7500 last year and have $7500 with my Mach E which I took delivery last month… but hey could use a few more of those $7500 credits. Hehe

This is going to be a mess, tax wise. How will someone claim a credit for 2022 on a vehicle that might not be delivered until 2024? Even if they give you a vin, what good is it?

 

[MGHTYDX]

Because my income is too high to qualify for the Federal tax credit under the Inflation Reduction Act, and 70 percent of EVs currently on the market likely won't qualify either, I placed a couple of written, binding purchase orders this weekend.

Under the transition provisions of the bill (pp. 393-394), which President Biden will sign into law next week, anyone who enters "into a written binding contract to purchase" before the bill is enacted (signed) will have the option of taking the $7,500 income tax credit under the old rules, no matter when the vehicle is eventually delivered.

Because Ford isn't accepting new orders for the F150 Lightning (except from existing reservation holders), I reserved a 2023 Rivian R1T and immediately converted my reservation to a binding order. That makes $100 of my $1,000 deposit non-refundable ($900 of my deposit remains fully refundable).

I also converted my reservation for a 2023 Fisker Ocean to a binding purchase agreement. That means my $250 deposit is now non-refundable. I'm considering doing the same thing for a Genesis GV60, although so far they haven't been as responsive as the other companies.

In no case does a binding purchase agreement obligate me to actually complete the purchase. But if I decide to do that, at least I'll have the option of taking advantage of the existing $7,500 Federal income tax credit under the pre-IRA rules.

Anyone else convert their EV reservations to binding purchase orders this weekend in anticipation of the President signing the bill next week?

I converted my reservation for the Fisker Ocean into an order on Sunday.

 

[ridgebackpilot]

Does Fisker or Rivian give you a VIN with the binding order? The tax form requires a VIN. It’s an interesting idea. I don’t like the Rivian. But I should look at the Fisker. I got the $7500 last year and have $7500 with my Mach E which I took delivery last month… but hey could use a few more of those $7500 credits. Hehe

The tax form is filed in the year you claim the credit, not the year when you order the vehicle. You don’t need a VIN to place a binding purchase order. That simply buys you the right to use the tax credit later, in the year you actually purchase the vehicle.

 

[Regulus7]

This is going to be a mess, tax wise. How will someone claim a credit for 2022 on a vehicle that might not be delivered until 2024? Even if they give you a vin, what good is it?

Yea… total mess. Fisker just 250 miles of range and only FWD? Not very interesting

? Am I missing something on this Fisker? Any review I can read?

 

[ridgebackpilot]

This is going to be a mess, tax wise. How will someone claim a credit for 2022 on a vehicle that might not be delivered until 2024? Even if they give you a vin, what good is it?

That isn’t how it works! The tax credit will apply to the year in which you actually pay for and take delivery of the vehicle, not the year you order the car. By placing a firm binding order now, I’m simply able to use the existing $7,500 tax credit whenever I actually purchase the EV.

 

[ridgebackpilot]

Yea… total mess. Fisker just 250 miles of range and only FWD? Not very interesting

? Am I missing something on this Fisker? Any review I can read?

The Fisker Ocean hasn’t started production yet so there are no comprehensive reviews out so far. Just speculation regarding whether they can actually bring it to market.

That said, they’ve apparently sold out most of their 2023 production already!

https://www.businesswire.com/news/h...epares-for-the-Start-of-Production-in-Austria

 

[rohankumar]

Here’s an exhaustive list of all EV and hybrid vehicles that will qualify under the new bill passed yesterday. It does show that the Mustang Mach E qualifies under certain restrictions so I am guest that the Mexico plant isn’t a disqualifier or they consider all of North America to meet the where manufactured qualification.

https://www.consumerreports.org/car...utm_medium=newsletter&utm_source=morning_brew

 

[SWO]

No, I believe the tax credits accrue when you complete the purchase, not on the date you order the vehicle. By placing a binding purchase order now, I'm securing the right to take the tax credit at a later date.

That makes more sense. Still seems like a bit of a gamble. Do you have price protection?

 

[ridgebackpilot]

That makes more sense. Still seems like a bit of a gamble. Do you have price protection?

Don’t think so; I’m just trying to secure tax credit protection!

Most Rivian and Fisker reservation and order holders haven’t yet been invited to option their cars, nor given a final price.

 

[NJ_MachE]

No, I believe the tax credits accrue when you complete the purchase, not on the date you order the vehicle. By placing a binding purchase order now, I'm securing the right to take the tax credit at a later date.

If you say so, but that's not what the IRA seems to provide for. It says that a binding purchase contract is simply treated as if you put the vehicle into service the day before the IRA becomes law. That means 2022, which is when you will have to claim it. How will you claim a tax credit in 2023 or onwards that no longer exists?

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