[nexus2nexus]

From a redditor who consulted a tax professional and attorney.

Per my tax accountant, who also consulted an attorney: this agreement is definitely not binding in the way required by the IRS for the tax credit. It would be a shame if buyers are counting on the tax credit and later find that the IRS says no--which my tax accountant is convinced will happen.

12/31 Delivery Deadline to get Reservationist Tax Credit. —On CarGurus, I see VIN information for Ariyas at several California dealerships. Will Nissan sell to Ariya Reservationists, before 12/31? : NissanAriya (reddit.com)

 

[mattp]

From a redditor who consulted a tax professional and attorney.



12/31 Delivery Deadline to get Reservationist Tax Credit. —On CarGurus, I see VIN information for Ariyas at several California dealerships. Will Nissan sell to Ariya Reservationists, before 12/31? : NissanAriya (reddit.com)

Biden's admin is bending the inflation act again to help Korean and EU manufacturers. They just announced that commercial leases now qualify for $7500 credit opening a huge backdoor. I don't think IRS will block this when middle class tax payers are buying with good intentions, if one has signed the agreement with Nissan before Aug 16th.

 

[nexus2nexus]

Biden's admin is bending the inflation act again to help Korean and EU manufacturers. They just announced that commercial leases now qualify for $7500 credit opening a huge backdoor. I don't think IRS will block this when middle class tax payers are buying with good intentions, if one has signed the agreement with Nissan before Aug 16th.

The agreement is so... flimsy.
I signed it and saved a copy but my saved PDF doesn't even show my signature. Does Nissan have a signed one on file?

 

[FolsomCa]

From a redditor who consulted a tax professional and attorney.



12/31 Delivery Deadline to get Reservationist Tax Credit. —On CarGurus, I see VIN information for Ariyas at several California dealerships. Will Nissan sell to Ariya Reservationists, before 12/31? : NissanAriya (reddit.com)

I hate to agree with you that news is bad. It seems NISSAN Lawyers probaly know this to but wont tell us for fear of Cancellations. That was a LARGE incentive for all of us buyers. looks like Biden Screwed us when we try to follow his Green Agenda. We stepped up to help and he kicked us to the curb....Really Hurts $7500 😢 😢

 

[ab13]

I don't think the IRS gave any guidance on the requirements of the agreement. Aside from saying it is State dependent.

 

[nexus2nexus]

I hate to agree with you that news is bad. It seems NISSAN Lawyers probaly know this to but wont tell us for fear of Cancellations. That was a LARGE incentive for all of us buyers. looks like Biden Screwed us when we try to follow his Green Agenda. We stepped up to help and he kicked us to the curb....Really Hurts $7500 😢 😢

Yup, how is the agenda supposed to be green when you selectively choose which manufacturers get the rebate. That's protectionism, not environmentalism.

 

[nexus2nexus]

I don't think the IRS gave any guidance on the requirements of the agreement. Aside from saying it is State dependent.

The 7500 is federal, not state.

 

[mattp]

The 7500 is federal, not state.

The poster meant IRS left it to state rules to define a binding agreement. I looked at MA. The rules for a binding agreement are very broad and the Nissan agreement should qualify.

 

[GreginAZ22]

Looking at the IRS site, it looks like we may be screwed even with the written bingding agreement if taking delivery in 2023. It explicitly states written binding contract is for vehicles that you take possesstion of between August 16th and January 1st.

From the site:

If you entered a written binding contract to buy a vehicle before August 16, 2022, but took possession on or after August 16, 2022, and before January 1, 2023, you may claim the credit based on the prior rules and disregard the assembly requirement.

Credits for New Electric Vehicles Purchased in 2022 or Before | Internal Revenue Service

If you bought or leased a new, qualified plug-in electric vehicle (EV) in 2022 or before, you may be eligible for a clean vehicle tax credit up to $7,500 under IRC 30D.

www.irs.gov

 

[Nebraskabd]

Credits for New Electric Vehicles Purchased in 2022 or Before | Internal Revenue Service

If you bought or leased a new, qualified plug-in electric vehicle (EV) in 2022 or before, you may be eligible for a clean vehicle tax credit up to $7,500 under IRC 30D.

www.irs.gov

as I read it, there is an undefined criteria. Binding contract signed before Aug. 16, 2022, delivery after Jan. 1 2023 is not addressed in the rules.
I won’t qualify for the new credits due to income, so all I can do is hope the undefined space works in our favor.

 

[sandeewilkhu]

Biden's admin is bending the inflation act again to help Korean and EU manufacturers. They just announced that commercial leases now qualify for $7500 credit opening a huge backdoor. I don't think IRS will block this when middle class tax payers are buying with good intentions, if one has signed the agreement with Nissan before Aug 16th.

The IRS requires the VIN on the tax form which determines whether the vehicle is qualified, unfortunately in our case the Ariya doesn’t qualify

 

[GreginAZ22]

Credits for New Electric Vehicles Purchased in 2022 or Before | Internal Revenue Service

If you bought or leased a new, qualified plug-in electric vehicle (EV) in 2022 or before, you may be eligible for a clean vehicle tax credit up to $7,500 under IRC 30D.

www.irs.gov

as I read it, there is an undefined criteria. Binding contract signed before Aug. 16, 2022, delivery after Jan. 1 2023 is not addressed in the rules.
I won’t qualify for the new credits due to income, so all I can do is hope the undefined space works in our favor.

The IRS site carves out a case to use a written binding agreement up until January 1st. It then says that any vehicles purchased in 2023 need to follow the 2023 rules, and when you look at those, there is no exception for a binding agreement.

From the website:

"If you purchased a vehicle between August 16, 2022 and December 31, 2022 but don't take delivery of the vehicle until 2023, see Credit for New Clean Vehicles Purchased in 2023 and After."

 

[Aryiastillwaiting]

Credits for New Electric Vehicles Purchased in 2022 or Before | Internal Revenue Service

If you bought or leased a new, qualified plug-in electric vehicle (EV) in 2022 or before, you may be eligible for a clean vehicle tax credit up to $7,500 under IRC 30D.

www.irs.gov

as I read it, there is an undefined criteria. Binding contract signed before Aug. 16, 2022, delivery after Jan. 1 2023 is not addressed in the rules.
I won’t qualify for the new credits due to income, so all I can do is hope the undefined space works in our favor.

Good observation but not hopeful at this point. This leaved a few thousand of us hanging without a federal tax credit. Maybe for some, a state level credit.

 

[mattp]

IRS Website says below:

Purchase date vs. delivery date
If you entered a written binding contract to buy a vehicle before August 16, 2022, but took possession on or after August 16, 2022, and before January 1, 2023, you may claim the credit based on the prior rules and disregard the assembly requirement.

If you purchased a vehicle between August 16, 2022 and December 31, 2022 but don't take delivery of the vehicle until 2023, see Credit for New Clean Vehicles Purchased in 2023 and After.


So what is not clear is for this use case:

If you entered a written binding contract to buy a vehicle before August 16, 2022, but took possession on or after August 16, 2022, and AFTER January 1, 2023, you may claim the credit based on the prior rules and disregard the assembly requirement.

Question is Nissan, Fisker and others are in the same boat. Will interpretation be favorable. Clearly there are cars being delivered in 2023 that were entered into binding agreement before Aug 16th, 2022.

 

[GreginAZ22]

IRS Website says below:

Purchase date vs. delivery date
If you entered a written binding contract to buy a vehicle before August 16, 2022, but took possession on or after August 16, 2022, and before January 1, 2023, you may claim the credit based on the prior rules and disregard the assembly requirement.

If you purchased a vehicle between August 16, 2022 and December 31, 2022 but don't take delivery of the vehicle until 2023, see Credit for New Clean Vehicles Purchased in 2023 and After.


So what is not clear is for this use case:

If you entered a written binding contract to buy a vehicle before August 16, 2022, but took possession on or after August 16, 2022, and AFTER January 1, 2023, you may claim the credit based on the prior rules and disregard the assembly requirement.

Question is Nissan, Fisker and others are in the same boat. Will interpretation be favorable. Clearly there are cars being delivered in 2023 that were entered into binding agreement before Aug 16th, 2022.

It seems pretty clear to me that it only makes the exception for a binding agreement until the end of 2022.

On a somewhat positive note, it seems that the IRS also has interpreted that 7500 dollars can be used in a lease in any electric vehicle regardless of where it was made or the contents of the batteries. It would then be on Nissan to decide if they wish to pass that 7500 on to lessees.

 

[mattp]

It seems pretty clear to me that it only makes the exception for a binding agreement until the end of 2022.

On a somewhat positive note, it seems that the IRS also has interpreted that 7500 dollars can be used in a lease in any electric vehicle regardless of where it was made or the contents of the batteries. It would then be on Nissan to decide if they wish to pass that 7500 on to lessees.

But Joe Manchin has put an objection to the commercial lease interpretation. With Sinema leaving Dem caucus, not sure if Treasury will stick with that interpretation.

 

[GreginAZ22]

But Joe Manchin has put an objection to the commercial lease interpretation. With Sinema leaving Dem caucus, not sure if Treasury will stick with that interpretation.

Manchin can object all he wants. The treasury has no obligation to listen to objections from him. The act is already signed, the treasury gets to determine how to interpret. If congress as a whole does not like the interpretation, they would have to vote to change it, and with a split house of representatives and senate I don't think much of anything is going to pass in the next 2 years.

 

[ab13]

The IRS site carves out a case to use a written binding agreement up until January 1st. It then says that any vehicles purchased in 2023 need to follow the 2023 rules, and when you look at those, there is no exception for a binding agreement.

From the website:

"If you purchased a vehicle between August 16, 2022 and December 31, 2022 but don't take delivery of the vehicle until 2023, see Credit for New Clean Vehicles Purchased in 2023 and After."

Unfortunately it's pretty crazy to update rules with only a couple days to act on them. Would have better if there was more time given.

 

[FolsomCa]

I would still have to agree with POST#1 which was given by Tax Proffessional and Attorney. Hopefully things change somehow and we can see what 2022 owners did on their taxes, Time will tell but that sure hurts to LOSE $7500 Rebate by going Green Now its almost like the GOVT is penalizing us. When thousands of us put $500 down that was our promise. So we thought!! 2022 Owners PLEASE dont forget us 2023 Reservationist. Happy New Year!!!

 

[cmbrayer]

I always thought you could only get the credit if you took delivery before January 1, 2023 when I read it. Was more of a gray area for me. I believed the intent of the transition rule was to allow for a small period to let people take delivery of pre ordered cars. I found it odd that they would let it go into the new year with the other parts of tbe IRA going into effect. After posting about it others posted not to worry and would fine if we took delivery in 2023. Looks like that may not be case with the IRS guidance.