IRS releases new EV credit rules - effective 4/18/23

[RickMachE]

Mach-e and Lightning will qualify for 50% starting on 4/18. Of course the 2023 Lightnings are mostly priced too high ($80,000 limit).

https://home.treasury.gov/news/press-releases/jy1379

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[4sallypat]

IRS just released notice of proposed rulemaking effective 4/18/23:
IR-2023-64, March 31, 2023

WASHINGTON — The Internal Revenue Service today issued a proposed regulation related to certain requirements that must be met for critical minerals and battery components for the new clean vehicle credit.

The Inflation Reduction Act (IRA) allows a maximum credit of $7,500 per vehicle, consisting of $3,750 in the case of a vehicle that meets certain requirements relating to critical minerals and $3,750 in the case of a vehicle that meets certain requirements relating to battery components.

The critical mineral and battery component requirements will apply to vehicles placed in service on or after April 18, 2023, the day after the Notice of Proposed Rulemaking is issued in the Federal Register.

New clean vehicles placed in service on or after April 18, 2023, are subject to the critical mineral and battery component requirements even if the vehicle was ordered or purchased before April 18, 2023. A vehicle's eligibility for the new clean vehicle credit is generally based on the rules that apply as of the date a vehicle is placed in service, meaning the date the taxpayer takes delivery of the vehicle.

This means that the vehicle may or may not be eligible depending on whether it meets the critical mineral and battery component requirements.

As a result of this guidance, the IRS updated the frequently-asked-questions (FAQs) for the clean vehicle credits.

https://www.irs.gov/newsroom/irs-is...hicle-critical-mineral-and-battery-components

 

[bnc734]

Interesting. I have a delivery date if 5/1-5/8, could I finalize my transaction with the dealer on 4/17 to ensure I get the credit?

 

[generaltso]

Interesting. I have a delivery date if 5/1-5/8, could I finalize my transaction with the dealer on 4/17 to ensure I get the credit?

No.

 

[4sallypat]

Interesting. I have a delivery date if 5/1-5/8, could I finalize my transaction with the dealer on 4/17 to ensure I get the credit?

No, the dealer would get in trouble with Ford and the IRS for falsifying when the vehicle is put in service.

 

[4sallypat]

Mach-e and Lightning will qualify for 50% starting on 4/18. Of course the 2023 Lightnings are mostly priced too high ($80,000 limit).

https://home.treasury.gov/news/press-releases/jy1379

Where can one get the details on manufacturers battery mineral content sourcing and assembly ?

I'd like to know if I should look for a different EV that qualifies for the full tax credit after 4/18.

Will Tesla or GM qualify ?

 

[HondaRacer]

Where can one get the details on manufacturers battery mineral content sourcing and assembly ?

I'd like to know if I should look for a different EV that qualifies for the full tax credit after 4/18.

Will Tesla or GM qualify ?

The NPRM is filed for public inspection and will be published in the Federal Register on April 17, 2023. Vehicles placed-in-service on or after April 18, 2023 will be subject to the critical mineral and battery component requirements laid out in the rule. On that date, FuelEconomy.gov will contain a list of eligible clean vehicles that qualified manufacturers have indicated to the IRS meet the requirements to claim the new clean vehicle credit, including the amount of the credit.

 

[Guss-E 2021]

Where can one get the details on manufacturers battery mineral content sourcing and assembly ?

I'd like to know if I should look for a different EV that qualifies for the full tax credit after 4/18.

Will Tesla or GM qualify ?

And there in lies the rub. This "where did the materials come from" is new territory. Supply chain transparency? What's that? Hopefully, as a result of the new tax law, that will change.

 

[jay1122]

When are we going to get a list showing which car qualifies what. I want to know who gets half and who gets 0. I am pretty sure no one gets the full credit now.

Edit: Found it from the guy above https://fueleconomy.gov/feg/tax2023.shtml. It will be updated Apr 17 with a list.

 

[4sallypat]

When are we going to get a list showing which car qualifies what. I want to know who gets half and who gets 0. I am pretty sure no one gets the full credit now.

That would be shocking to find out no EV gets the full credit - how terribly written the IRA law was written ????

 

[RickMachE]

Where can one get the details on manufacturers battery mineral content sourcing and assembly ?

I'd like to know if I should look for a different EV that qualifies for the full tax credit after 4/18.

Will Tesla or GM qualify ?

When are we going to get a list showing which car qualifies what. I want to know who gets half and who gets 0.

If one goes and reads what I linked in the first post, you'll find what @HondaRacer posted, which is that you'll see the list on 4/18/23 at the link he provided.

It was widely understood that both the Mach-E and Lightning would qualify for 50%, because of where the materials are sourced. I haven't read anything official.

See Farley's tweet today below.

 

[Guss-E 2021]

I am pretty sure no one gets the full credit now.

Which does suck (a bit) but man did it ever light a fire under the OEM's a$$e$ to get battery factories online here in the US (which I believe was the goal of the law all along).

Tesla is now following Ford's lead and proposing an US LFP factory partnership with CATL as well. All hope is not lost

 

[RickMachE]

That would be shocking to find out no EV gets the full credit - how terribly written the IRA law was written ????

Guess you haven't been following this closely. Yes, there are clearly EVs that won't get the full credit, and EVs that won't get any credit, based on the upcoming rules. This was known last December when they published the rules.

The manufacturers know exactly what their vehicles qualify for, and haven't divulged that yet because it will depress sales.

Beginning April 18, the full tax credit will be divided into two parts. To qualify for the first $3,750, at least 50 percent of a vehicle’s battery components must be produced or assembled in North America. To get the second $3,750, at least 40 percent of critical minerals used in the battery must be extracted or processed in the U.S. or in a country that is a U.S. free-trade agreement partner, or they must have been recycled in North America. Buyers must take possession of the car before April 18 or else the new rules will apply, a White House spokesperson told Consumer Reports. It’s not enough to simply order or purchase the car before then. This restriction won’t apply to used vehicles and may not apply to leased vehicles.

 

[dbsb3233]

Which does suck but man did it every light a fire under the OEM's a$$e$ to get battery factories online here in the US (which I believe was the goal of the law all along).

Tesla is now following Ford's lead and proposing an US LFP factory partnership with CATL as well.

Most of those battery plants were already planned long before the IRA.

And I think it was the other way around (Tesla including CATL LFP first).

 

[jay1122]

That would be shocking to find out no EV gets the full credit - how terribly written the IRA law was written ????

Aren't you still waiting for your car to be delivered? And it has been sitting for how long? This is just sad. You only got 2 weeks left. If I am in that position, I would just refuse the delivery to give Ford a big F U.

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