I'm in the first 1000 reservation holders, so will very likely qualify for the credit. That said, I would buy it regardless. I view the tax credit as a pleasant bonus rather than a requirement.

 

You should be fine. It’s starts to phases out two quarters (6 months) after reaching 200k. At the end of 2021 they had sold 165. Assuming 15k in Leafs for 2022, that would leave 20k Ariyas before hitting the limit. Even if they hit the 200k before you get yours, you still would have about 6 months before the full credit expires.

 

Also see the following links:

Did US pre-order reservation numbers start at 10,000?

From various EV forums, I've culled as many examples of US pre-order reservation numbers as I could find. Several of those forum users said they ordered immediately as the Ariya preorder/reservations website went live back on Nov 17. So far, I have not found a single example of anyone stating...

www.ariyaforums.com

Federal $7,500 Tax Credit (2022 update)

Looks like, Nissan has already sold ~170,000 Leaf as of 2022/Q1. Nissan Leaf US car sales figures (carsalesbase.com) At the current Leaf sales rate of ~4,000 per quarter, at minimum the first ~18,000 Ariya purchasers will qualify for the full federal tax credit. Very likely, all of the Ariya...

www.ariyaforums.com

 

The baseline number for the reservation started at 10101. The orders reservation system also increments this baseline number by 3 for every reservation. You are 7,782 reservation # in the queue and most likely get your Ariya in 2023.

 

I reserved my Platinum+ on 3/28/22 and I am number 34098.

 

I recently read an article published on July 3rd by Inside EVs regarding this matter. This article revealed that as of June 30, 2022 Nissan was still 26,668 EV units away from hitting the dreaded 200k threshold . As many are aware, there is literally zero Leaf inventory available nationwide that aren’t actual pre-orders. Combined with low inventory numbers, only a handful of pre-order Leaf models are in the queue after Nissan decided recently to halt all Leaf pre-orders until further notice.
So unless something changes it is safe to assume that a very low number of Leaf units will be sold in quaters 3 and 4 of 2022. Then the question remains, how many Ariyas will actually be built and sold fall/winter of 2022? >Considering the recent curtailment of the Leaf, is Nissan now planning to pace their EV production and sales to magically hit the 200k EV threshold on July 1, 2023?
If the above scenario becomes a reality, Nissan will be able to offer both the Leaf and Ariya model sales with the full federal tax credit incentive for the remaining 2023 calendar year.

 

reserved aiya venture plus long range, my reservation in first 1000 list
what is my ev tax credit situation

 

Hard to speculate at this moment until the final version of this bill either passes or doesn’t. The last version of this bill reported a few days ago indicated that even if you took possession of your Ariya in 2022, if that bill was signed into law before you had finalized a sales order you could be out of luck. In effect, the grandfathered clause of the current version of this bill only recognized EV production assembled in AmerIca. So the Nissan Leaf would still qualify for a tax credit under that version of the bill but not the Ariya because it is currently assembled in Japan.

Personally I believe Nissan is monitoring this legislation very closely and will become extremely motivated as needed to create a suitable financial path for all USA Ariya reservation holders to maintain their ability to claim the federal tax credit.

 

With the passing of the Inflation Reduction Act, it appears that NO Ariya will receive a $7,500 tax credit because they are not "assembled in North America"! I have been trying to get that fact verified via the Ariya Presales Chat Line, and they said "We don't know; call your dealer." I have an email out to my dealer (the formal way to ask questions) and I will post what I find out. But from my reading of the Act, there will be no tax credit even for those of us who have reserved one and may receive delivery in 2022. Nissan has announced plans to build the Ariya in a Mississippi plant in 2025, so I(we) may have to wait until then to get our 'affordable' Ariya. I was pressed to reserve one BECAUSE of the tax credit, which I feared would've been phased out in 2023 because of the (previous) 200,000 EV sales mark being close for Nissan because of the 170,000 Leafs already sold. Now (a) there is no phase-out at 200,000 units, but (b) Ariya's will not be eligible for a tax credit. Bummer!! (And I ned not point out that dealers are left to 'price' new cars above MSRP ... and will have done so with the Ariya's. That double whammy would/does make an Ariya purchase cost-prohibitive for too many customers.)

 

Hopefully you hear back from your dealer but I have a feeling they'll redirect you back to someone at Nissan.

 

....Nissan Ariya can get $7500...existing tax credit. How I want to explain, Before Biden signs this week's new bill...if Nissan can create Binding Agreement for the existing...reservation holders...still we can get $7500 ev tax credits
Already Rivian and Fisker EV manufacturers...preparing the Binding Purchase agreements. What it means, part of deposit we paid will go to sale agreement, with that we can as usual, claim our $7500 tax credit, in 2023 taxes.
So, Nissan should, wake-up and help for 2022 delivery holders, existing. First 25000 reservation holders..to get $7500...existing EV tax credit
This is possible...I am in first 1000 members Ariya reservation list. Nissan USA...do something, we don't want to loose $7500 tax credit
We hope, Nissan such a big corporate giant, will be watching these developments, try to work out solution, just like other Fiskars and Rivian EV manufacture's

 

I was the 596th reservation but because I ordered Platinum+ with E4orce I won't get mine this year, Hopefully when Nissan figures it out and gets us binding written contracts they will carry into next year

 

I received the binding agreement email and selected I Agree, so that's all Ariya-reserved customers have to do for now. However, there is one additional issue which could throw a wrench into getting the full $7,500 tax credit. Since Nissan has sold over 170,00 Leafs so far, and since, when we selected I Agree, we are on the 'current' tax credit rule. Should Leaf purchases that take place BEFORE we get our Ariya's take the total EV sales to 200,000, the phase-out rule that we're under kicks in. So, there is a chance that some of us getting the later Ariya's might see the tax credit being reduced per the phase-pout rule. But, on the other hand, perspective Leaf customers are under NO HURRY to purchase their Leaf since they are assembled in North America and, thus, fall OUTSIDE any 200,000 quota (rescinded in the Act) or the requirement to be assembled here. So a perspective Ariya owner's best-case scenario is that perspective Leaf owners DELAY purchasing their Leaf until 2023, giving the Ariya-reserve owners the opportunity to receive their Ariya AND the full $7,500 tax credit. Maybe ... just maybe ... perspective Leaf owners will wait until Leaf prices come down in 2023 as supplies are increased???

 

My take regarding Nissan’s 200k cap limit and the impact of and potential Leaf sales for the remaining portion of 2022:
A Nissan Leaf that is not currently under written contract by the end of business today will no longer count against Nissans cap threshold because Biden will be signing the IRA into law tomorrow. So any Leaf or any other EV model that still qualify under the new legislation ……those sales will likely stall out for the remaining year (until 2023 ) when buyers once again will qualify for a government subsidy.

 

FWIW my good friend runs a Nissan store and they can’t get any new Leafs anyway.

 

Wonder if the dealer is going to date the bill of sale as the sales agreement date for tax rebate purposes.,

 

The dealer sale date will be the date you buy the vehicle. However, under the IRA you don't need a bill of sale but need a binding agreement prior to IRA enactment (which Nissan has done) for tax rebate purposes.

 

My Retail Buyers Order, signed by myself and my dealer, simply states "MSRP, and details the remaining costs and deposit made. That contract also clearly states its non-cancellable. Ergo I have a Nissan "Binding agreement" and a dealer "Sales Order" that is on-cancellable. I'm not sure how much more the IRS is gonna want.

 

Unless the IRS changes the IRS Form 8936 the EV tax credit claim form to include the binding sales agreement date you will not be able to claim the tax credit. The form list the date as when the EV was put in service. If you file manually maybe you can include a copy of the Nissan binding sale agreement. If you use the Intuit Turbotax or another tax prep package and E-file you have a problem.

 

It’s frustrating how all this is in limbo. Would really like a tax lawyer or even the IRS to weigh in on whether any of this is going to be accepted. I have a feeling a lot of people are going to buy the Ariya expecting a tax credit and file their taxes only for the IRS to reject it. This could be putting a lot of people in jeopardy. My advice is only buy the car if you are prepared financially to not get the credit.

 

The last minute manner in which the IRA passed legislation there’s no doubt the IRS has a daunting task ahead of them. I‘m pretty confident that a portion of additional funding that was appropriated in this bill to fund additional IRS staff was specifically earmarked to sort out all of this EV minutiae. LOL

 

I ordered on what I think was day one 11/16/21 but not early in the day, if subtract 10,000 and divide by 3 is accurate, Im in the first 200, but I am waiting for

Model:​ Nissan ARIYA PLATINUM+, AWD​

Battery:​ LONG​

Exterior color:​ Everest White Pearl Tricoat / Black Diamond Metallic​

Interior color:​ Blue Gray Nappa Leather​

so I am not looking for delivery until 2023


jay Streets

 

We all agree that the options for claiming a tax credit for reserved (with binding agreement) Ariyas AFTER Nissan reaches its 200,000 sale of Leafs and delivered Ariyas are not crystal clear. Here are some websites that may add more information to interested reserved Ariya customers because they include references to the 'old' rules, too:

Treasury Releases Initial Information on Electric Vehicle Tax Credit Under Newly Enacted Inflation Reduction Act
Treasury Releases Initial Information on Electric Vehicle Tax Credit Under Newly Enacted Inflation Reduction Act

Frequently Asked Questions on the Inflation Reduction Act’s Initial Changes to the Electric Vehicle Tax Credit Frequently Asked Questions on the Inflation Reduction Act’s Initial Changes to the Electric Vehicle Tax Credit

https://home.treasury.gov/system/files/136/EV-Tax-Credit-FAQs.pdf

[From the IRS] Plug-In Electric Drive Vehicle Credit (IRC 30D)

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

And to help explain how the phase-out of the tax credit under the 'old' tax credit rules, there's this:

How The Federal Electric Vehicle (EV) Tax Credit Works

How The Federal Electric Vehicle (EV) Tax Credit Works | EVAdoption

evadoption.com

 

We all agree that the options for claiming a tax credit for reserved (with binding agreement) Ariyas AFTER Nissan reaches its 200,000 sale of Leafs and delivered Ariyas are not crystal clear. Here are some websites that may add more information to interested reserved Ariya customers because they include references to the 'old' rules, too:

Treasury Releases Initial Information on Electric Vehicle Tax Credit Under Newly Enacted Inflation Reduction Act
Treasury Releases Initial Information on Electric Vehicle Tax Credit Under Newly Enacted Inflation Reduction Act

Frequently Asked Questions on the Inflation Reduction Act’s Initial Changes to the Electric Vehicle Tax Credit Frequently Asked Questions on the Inflation Reduction Act’s Initial Changes to the Electric Vehicle Tax Credit

https://home.treasury.gov/system/files/136/EV-Tax-Credit-FAQs.pdf

[From the IRS] Plug-In Electric Drive Vehicle Credit (IRC 30D)

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

And to help explain how the phase-out of the tax credit under the 'old' tax credit rules, there's this:

How The Federal Electric Vehicle (EV) Tax Credit Works

How The Federal Electric Vehicle (EV) Tax Credit Works | EVAdoption

evadoption.com

IRS rules that cover our issues.

Transition Rule for Vehicles Purchased before August 16, 2022
If you entered into a written binding contract to purchase a new qualifying electric vehicle before August 16, 2022, but do not take possession of the vehicle until on or after August 16, 2022 (for example, because the vehicle has not been delivered), you may claim the EV credit based on the rules that were in effect before August 16, 2022. The final assembly requirement does not apply before August 16, 2022.
Vehicles Purchased and Delivered between August 16, 2022 and December 31, 2022
If you purchase and take possession of a qualifying electric vehicle after August 16, 2022 and before January 1, 2023, aside from the final assembly requirement, the rules in effect before the enactment of the Inflation Reduction Act for the EV credit apply (including those involving the manufacturing caps on vehicles sold). If you entered into a written binding contract to purchase a new qualifying vehicle before August 16, 2022, see the rule above.
What Is a Written Binding Contract?
In general, a written contract is binding if it is enforceable under State law and does not limit damages to a specified amount (for example, by use of a liquidated damages provision or the forfeiture of a deposit). While the enforceability of a contract under State law is a facts-and-circumstances determination to be made under relevant State law, if a customer has made a significant non-refundable deposit or down payment, it is an indication of a binding contract. For tax purposes in general, a contract provision that limits damages to an amount equal to at least 5 percent of the total contract price is not treated as limiting damages to a specified amount. For example, if a customer has made a non-refundable deposit or down payment of 5 percent of the total contract price, it is an indication of a binding contract. A contract is binding even if subject to a condition, as long as the condition is not within the control of either party. A contract will continue to be binding if the parties make insubstantial changes in its terms and conditions.

 

So in everything I have read I don't see where it says that the old rule wouldn't apply as long as one entered into the binding agreement prior to August 16th and takes delivery before the 200,000 car phase out kicks in. For myself even though I am one of the first 200 orders, I ordered a Platinum+ so I won't see it till 2023. From what I have read I should be able to claim a credit on my 2023 taxes, at least that is what I am hoping.
Has anyone seen anything that says differently?

Jay Streets

 

So in everything I have read I don't see where it says that the old rule wouldn't apply as long as one entered into the binding agreement prior to August 16th and takes delivery before the 200,000 car phase out kicks in. For myself even though I am one of the first 200 orders, I ordered a Platinum+ so I won't see it till 2023. From what I have read I should be able to claim a credit on my 2023 taxes, at least that is what I am hoping.
Has anyone seen anything that says differently?

Jay Streets

The law states that if it qualifies under the "binding contract" provision, we can claim it as if it were put into service on 8/15/22. So I think it would go under your 2022 taxes.

 

WOW, Im not a tax guy but the idea of a tax credit for something That you didn't pay for in that year seems a little wonky. It is a shame that of all the contributors on this forum no one who is a tax person has chimed in or at least no one who admits to being a tax person has

jay streets

 

Just got this from Nissan

We have received your signed Agreement to Purchase an ARIYA.*​ ​ Jay, This will confirm our receipt (prior to enactment of the Inflation Reduction Act of 2022) of your signed Agreement to Purchase the All-New 2023 Nissan ARIYA*when available at Dealers. Our goal in offering this agreement has been to try to help best position you to receive any EV tax credit that may be available to you.*We thank you for your continued support of Nissan and your commitment to being one of the first to purchase the ARIYA, and we look forward to you enjoying your ARIYA.*,†​ ​ ​ ​ YOUR RESERVATION ID:† 10596​ Need Assistance?​ If you have questions related to your ARIYA* reservation, please contact Customer Support at 800-335-1428.​

Update email address | Unsubscribe | Privacy policy​ * Nissan ARIYA not yet available for purchase. Expected availability Late Fall/Winter 2022. ** Nissan cannot guarantee the availability of any EV tax credit. You should consult with your own tax advisor concerning eligibility for any credit. See Agreement to Purchase for complete terms and conditions. Please keep a copy of this email for your records. † $500 reservation fee required to reserve a Nissan ARIYA. Reservations might exceed initial production levels; therefore, Nissan cannot guarantee delivery of a 2023 ARIYA by any specific date. The $500 reservation fee is fully refundable at any time to your original form of payment. At the time of purchase, you may apply the $500 reservation fee toward the purchase of your reserved ARIYA. Excludes taxes, title, license and options. ARIYA available for purchase expected Late Fall/Winter 2022. Always wear your seat belt, and please don't drink and drive. © 2022 Nissan North America, Inc. All rights reserved. If you would like more information from Nissan about their products, visit NissanUSA.com or write them at: Nissan Marketing Mail Stop P3C P.O. Box 685003 Franklin, TN 37068-5003

 

Just got this from Nissan

​

​ ​ We have received your signed Agreement to Purchase an ARIYA.*​ ​ ​ ​ ​ Jay, This will confirm our receipt (prior to enactment of the Inflation Reduction Act of 2022) of your signed Agreement to Purchase the All-New 2023 Nissan ARIYA*when available at Dealers. Our goal in offering this agreement has been to try to help best position you to receive any EV tax credit that may be available to you.We thank you for your continued support of Nissan and your commitment to being one of the first to purchase the ARIYA, and we look forward to you enjoying your ARIYA.,†​ ​ ​ ​ YOUR RESERVATION ID:† 10596​ Need Assistance?​ If you have questions related to your ARIYA* reservation, please contact Customer Support at 800-335-1428.​

Update email address | Unsubscribe | Privacy policy​ * Nissan ARIYA not yet available for purchase. Expected availability Late Fall/Winter 2022. ** Nissan cannot guarantee the availability of any EV tax credit. You should consult with your own tax advisor concerning eligibility for any credit. See Agreement to Purchase for complete terms and conditions. Please keep a copy of this email for your records. † $500 reservation fee required to reserve a Nissan ARIYA. Reservations might exceed initial production levels; therefore, Nissan cannot guarantee delivery of a 2023 ARIYA by any specific date. The $500 reservation fee is fully refundable at any time to your original form of payment. At the time of purchase, you may apply the $500 reservation fee toward the purchase of your reserved ARIYA. Excludes taxes, title, license and options. ARIYA available for purchase expected Late Fall/Winter 2022. Always wear your seat belt, and please don't drink and drive. © 2022 Nissan North America, Inc. All rights reserved. If you would like more information from Nissan about their products, visit NissanUSA.com or write them at: Nissan Marketing Mail Stop P3C P.O. Box 685003 Franklin, TN 37068-5003

Wow your reservation is low! Especially if the numbers started at 10,000. Please let us know when you get your Ariya,

 

Well I ordered day one but I won’t be first, I ordered a platinum+.

Jay streets

 

[Full disclosure: I am neither a lawyer nor a tax accountant]. I am gonna stick my neck out with a LONG reply to explain the eligible tax credits as I understand them for those of us who (1) have reserved an Ariya and (2) have signed a binding agreement before the Inflation Reduction Act was signed. Therefore, we are under the OLD EV Tax Credit rule. To start with, this is the old phase-out rule (with an old example):

When Does the Credit Expire?
The electric car tax credit phases out when a manufacturer sells 200,000 total qualifying vehicles, no matter the model. The credit is cut in half, from $7,500 to $3,750, in the second calendar quarter until the end of the third calendar quarter after an automaker reaches the 200,000-car threshold. It is then cut in half again, for the next two quarters, to $1,875, until the allowable credit is $0 one full year later or four calendar quarters after the phase out begins.

Example from 2018: Tesla and General Motors are the only manufacturers that have reached the 200,000-car milestone, meaning new purchases of qualifying vehicles from these manufacturers are not eligible for the electronic car tax credit. Tesla reached this mark in July of 2018, so the 50% credit phase out began in January 2019 and ran through the end of June 2019. From July 2019 through December 2019, the credit was reduced to 25%. After January 1, 2020, the credit was completely phased out to $0 for new buyers.

Here are my interpretations of the phase-out rule as it applies to our situation—both near-term and far-term, should there be significant, unforeseen delivery delays of our Ariyas:

• [BEST SCENARIO] If Nissan does NOT sell 200,000 Leafs and Ariyas in the U.S. before we receive our Ariya, we get the maximum tax credit of $7,500.
• [NEXT BEST SCENARIO] If Nissan sells 200,000 Leafs and Ariyas in the U.S. by December 31, 2022, BUT we receive our Ariya BEFORE April 1, 2023, we still gets a $7,500 tax credit.
• If Nissan sells 200,000 Leafs and Ariyas in the U.S. by December 31, 2022, AND we get our Ariya ...
• ... AFTER April 1 but before October 1, our tax credit would be $3,750.
• ... AFTER October 1 but before December 31, we would get a $1,875 tax credit.
• ... in 2024 [not a chance!!], we would receive NO tax credit.
• [STILL A GOOD SCENARIO] If Nissan sells 200,000 Leafs and Ariyas in the U.S. within the 1st quarter of 2023, BUT we receive our Ariya BEFORE October 1, 2023, we receive a $7,500 tax credit.
• If Nissan sells 200,000 Leafs and Ariyas in the U.S. within the 1st quarter of 2023, BUT we receive our Ariya ...
• ... AFTER October 1 but before December 31, our tax credit would be $3,750.
• ... until 2024, [Well, I don’t even want to contemplate us not getting an Ariya until 2024!!!]

As you can see, the first two scenarios are what will most likely happen and for which we all are hoping.

I welcome a tax accountant's verification or correction to my interpretations of the phase-out rule ... and a definitive answer as to WHICH tax year—2022 or 2023—we take our tax credit should we RECEIVE our Ariya in 2023.

 

I wouldn't get my hopes up about qualifying for the transitional provision. But if somehow we do, the 200,000 cap should be irrelevant. The transitional rule allows buyers to treat the purchase as if it happened on 8/15/2022, at which time Nissan had not hit the 200,000 unit cap.

 

Since Nissan took only 10,000 Ariya reservations, unless there are serious delays for the AWD, everyone should get their ARIYA by March 2023. And, everyone should be within the 200,000 cap.

 

Agreed! But I'm raising 'red flags' because of the continued chip supply chain issues. We've already seen significant delays of other 'electronic' products ... could spell delays of our Ariyas, too.

 

The 5 percent part of that is "OR": If you don't have a binding contract, the IRS will consider you to have a binding contract if you have paid a non-refundable deposit of at least 5%. Since we (hopefully) have binding contracts, that part isn't relevant for us.

 

I like and agree with your interpretation. In any case, I am taking the tax credit and the IRS can audit should they choose to.

 

Other observations/comments that I've run across about our Ariya delivery issue are these:

1. Since it appears we can opt to declare our Ariya purchase to have occurred on the date of our binding contract with Nissan (which was in August, before the Act was signed), we may NOT need to worry about Nissan exceeding the 200,000 EV sale threshold ... because we would've 'purchased' ours in August of 2022, and Nissan had NOT exceeded the 200,000 sales threshold in August 2022! So, in that instance, we needn't worry about any phase-out of the tax credit kicking in ... whenever.
2. But ... on the other hand ... IF we elect to declare our Ariya purchase to be on the date of the binding contract, does that actually shorten our car's warranty? That is, does the warranty then take effect on the August 2022 date, even if we don't take delivery until MUCH later ... even into 2023? If so, owner's have 'lost' months of their warranty. If that is the case, we would need to think twice about WHEN to declare the Ariya purchase for tax purposes.

Does anyone want to chime in about either of these two possibilities? (We really ARE traveling in new territory with this 'binding contract' issue and how both the IRS and Nissan will implement it.)

 

I am not an accountant. However here’s my previous experience and why I believe our advisers won’t be applying a tax credit for our Ariya until the actual calendar year that we take physical delivery:
I signed a binding contract with my local Nissan dealership in 2010 for our Leaf and also made a substantial deposit at that time. This step was required during the Leaf reservation process as the dealer was required to submit to Nissan a final configuration order for our vehicle.
However our Leaf actually didn’t arrive in the US until late October 2011. (Long story here …..largely impacted by the 2011 Tsunami and the eventual melt down of the Fukushima Nuke plant less than 100 miles from where our Leaf was manufactured)
Regardless, since the delivery of our Leaf actually took place in 2011 (2011 also being the calendar year when the largest and final monetary transaction for our vehicle occurred) our tax adviser didn’t apply for our $7500 tax credit until the 2011 calendar year.

 

I’m curious if anyone has talked to a tax accountant or tax advisor and what their opinion is on whether that binding agreement would be accepted. Does the IRS typically provide an opinion before hand or do we have to wait to apply the credit and see if it gets rejected before we know where the IRS stands?

 

The IRS position is: What Is a Written Binding Contract?
In general, a written contract is binding if it is enforceable under State law and does not limit damages to a specified amount (for example, by use of a liquidated damages provision or the forfeiture of a deposit). While the enforceability of a contract under State law is a facts-and-circumstances determination to be made under relevant State law, if a customer has made a significant non-refundable deposit or down payment, it is an indication of a binding contract. For tax purposes in general, a contract provision that limits damages to an amount equal to at least 5 percent of the total contract price is not treated as limiting damages to a specified amount. For example, if a customer has made a non-refundable deposit or down payment of 5 percent of the total contract price, it is an indication of a binding contract. A contract is binding even if subject to a condition, as long as the condition is not within the control of either party. A contract will continue to be binding if the parties make insubstantial changes in its terms and conditions.

The loop-hole is what your State law may define as binding. The IRS will not provide an opinion on your specific case prior to filing taxes; they may reject it after the fact/filing.