[EarlyEVadopter]

I had an on line chat with “Katie“ from Nissan this morning to ask if any of the new models listed within the updated website are available to current reservation holders. Specifically I asked if it would be possible to switch my order from Evolve+ FWD to the Egage + e4orce model. Her response was that the new models listed on the updated website should be available to current reservation holders. However, any AWD model will continue to be a somewhat delayed delivery. So I just logged into my reservation portal to edit my order to the Engage+ AWD . Unfortunately the current portal has not been modified or list any of the new configurations yet.
Bottom line: If my information extrapolated today from Katie at Nissan was accurate, I for one will be looking forward to changing my reservation to an Engage + AWD.
Lastly notice that the PREMIER+ model has been replaced with the EMPOWER+ and new exterior color options for different models are available now including “RED”

 

[EarlyEVadopter]

why do you think you would lose the possible tax credit? there's been no VIN assigned.

Agreed. Also, the document I signed from Nissan to satisfy the recent IRA legislation didn’t specify an exact model that I was committing to….only referenced my reservation number and that I intended to purchase an Ariya that had not been produced yet.

 

[EarlyEVadopter]

My understanding of the IRA loophole rule is that the year you take delivery won’t matter as long as you signed the binding agreement prior to POTUS signing it into law on August 16, 2022.

 

[EarlyEVadopter]

Still a lot of unknowns: for example, say you have the binding agreement and do purchase, and take possession of, an Ariya in 2023, what tax year is the credit applicable to? In 2023 the IRS form for the “old” credit will likely be gone, or at least modified to reference the more involved “new” credit(s). Do you file an amended 2022 form to back-claim the credit? I have a feeling that the IRS did not intend this to be open ended beyond 2022 but the wording on the provision is not clear on that.

I consulted with a tax preparer couple recently who coincidently had ordered a Rivian R1S model that exceeded the allowable 80K ceiling threshold of the IRA. Since it was understood that their vehicle would not be built until 2023 (at the earliest) one of them signed a binding agreement with Rivian (prior to 8/16/22) that was worded similar to Nissans document. Both agreed that they do not intend to take their allowable tax credit deduction until the tax year that they actually take delivery of their Rivian.
Bottom line: I suspect that the IRS is currently working to sort out the IRA mess that congress just handed them. I expect to see IRS interpretation/rules regarding this matter well ahead of filing our taxes for the 2022 calendar year.

 

[EarlyEVadopter]

so if we're going by the previous $7500 credit, the income limits also aren't in play right? $150k single, $300k married.

That’s my interpretation as well. i e Ariya reservation holders fortunate enough to sign Nissans’ commitment agreement prior to 8/16/22 are essentially grandfathered per the “old EV tax credit rules”.

 

[EarlyEVadopter]

Which doesn’t make sense because transition rule says when you take delivery it is as if you placed it into service pre-8/16. How do you place a car into service on 8/15/2022 and claim a tax credit for it in 2024?

I think amending 2022 tax returns will be the method to getting the $7500 tax credit.

Seems obvious to me that the IRS has significant work to do in order to define some specific guidelines regarding this matter.

 

[EarlyEVadopter]

The other issue for the old tax credit is the 200,000 vehicle cap.

Here‘s a scenario to put your mind at ease regarding if the 200k vehicle sales cap could issue could even come into play:
All the data that I read indicates that Nissan was somewhere around 15,000 shy of hitting the 200k ceiling for total Leaf sales when the new legislation took effect mid August. Since the Leaf now qualifies under the new tax credit guidelines, (built in the USA) all Leaf sales August 17 forward will no longer count against Nissans old cap. That said, most data also suggests that Nissan closed the Ariya reservation process down in the USA just shy of 10,000 reservations. So it would be impossible for current Ariya USA reservation holders that have signed agreements with Nissan prior to 8/16/22 to ever exceed the old cap guideline rule.

 

[EarlyEVadopter]

Which doesn’t make sense because transition rule says when you take delivery it is as if you placed it into service pre-8/16. How do you place a car into service on 8/15/2022 and claim a tax credit for it in 2024?

I think amending 2022 tax returns will be the method to getting the $7500 tax credit.

Agreed. No potential for a penalty if we purchase an Ariya in 2023. The worst the IRS could do is decline our amended
2022 returns.

 

[EarlyEVadopter]

Even if it goes over, it doesn't phase out on the 200,001th car sold. the sales quarter marks the end of the $7500 IIRC.

Agreed.

 

[EarlyEVadopter]

Isn't the 200k cap per model though? Doesn't seem like it would apply.

Actually the old cap rule applied to all qualifying plug in models built by a manufacturer. For example Toyota hit the 200k cap the first quarter of 2022. Those sales were for the most part a combination of the Prius and RAV 4 Prime plug in hybrid models.

 

[EarlyEVadopter]

Thanks for posting the link to the CRS document — that is the most concise description of the EV tax credit changes that I’ve seen. Based on the IRS statement that a binding contract includes 5%+ down payment, I’d say no one is getting a credit for an Ariya (unless of course they did put down several thousand $ downpayment).

I continue to hold out hope that the IRS must step in and make a final ruling and contend that the Nissan commitment agreement we all signed prior to 8-16-22 will be sufficient to satisfy the transition rule. The IRA legislation passed last August was so fast tracked that it caught many EV automakers and potential EV consumers off guard. To that end each EV mfg. potentially impacted by this legislation that already had a reservation process in place took a little different approach to generate a so called “binding agreement“. Needless to say no one mfg. impacted by this legislation ever came close to asking for a 5% or greater down payment in conjunction with their binding agreement verbiage to qualify. For example Fisker asked their reservation holders to agree that their entire $250.00 deposit would be non refundable if they decided to sign on the bottom line. Conversely Rivian asked their reservation holders to potentially only forfeit $100.00 of their $1000.00 deposit if they agreed to sign their binding agreement.
So again I maintain it will ultimately be up to the IRS discretion to make what I hope will be a reasonable and final ruling on this matter. In hindsight it’s clear that the many details pertaining to the “transition rule“ segment of the IRA legislation were never thoroughly considered.