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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

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

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
 

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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

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

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
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.
 

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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
 

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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.
 

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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
 

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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
I believe we can all agree that the IRS must sort these sort of details out before anyone files their taxes for the 2022 tax year. My tax credit experience years before the “transition rule” contained in the IRA might come into play when filing:
My wife and I paid a $500 deposit for a 2011 model year Nissan Leaf -our deposit was paid in the fall of 2010. However we actually took delivery October 2011 when we paid the remaining balance… we filed and successfully received a $7500 tax credit for our 2011 tax year.
 

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I believe we can all agree that the IRS must sort these sort of details out before anyone files their taxes for the 2022 tax year. My tax credit experience years before the “transition rule” contained in the IRA might come into play when filing:
My wife and I paid a $500 deposit for a 2011 model year Nissan Leaf -our deposit was paid in the fall of 2010. However we actually took delivery October 2011 when we paid the remaining balance… we filed and successfully received a $7500 tax credit for our 2011 tax year.
Here‘s just one scenario why I don’t believe the IRS would allow Ariya reservation holders (or any other EV brand pre order buyers) working within the transition rule guidelines of the IRA to claim the tax credit for the 2022 tax year. -Let’s say an Airy Platinum + reservation holder claims their tax credit in 2022. However their vehicle wont be ready for delivery until after they have filed their taxes on April 15, 2023. What happens if for whatever reason they are no longer able to follow through and actually take delivery post tax deadline? Pretty messy, right?
 

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Here‘s just one scenario why I don’t believe the IRS would allow Ariya reservation holders (or any other EV brand pre order buyers) working within the transition rule guidelines of the IRA to claim the tax credit for the 2022 tax year. -Let’s say an Airy Platinum + reservation holder claims their tax credit in 2022. However their vehicle wont be ready for delivery until after they have filed their taxes on April 15, 2023. What happens if for whatever reason they are no longer able to follow through and actually take delivery post tax deadline? Pretty messy, right?
You'd probably just refile 2022 if you took delivery later in 2023. But everyone should definitely be consulting with tax professionals before making any decisions.
 

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Just got this from Nissan



We have received your signed Agreement to Purchase an ARIYA.*​
NISSAN[R]
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.
* 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
 

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Just got this from Nissan



We have received your signed Agreement to Purchase an ARIYA.*​
NISSAN[R]
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.
* 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,
 

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Just got this from Nissan



We have received your signed Agreement to Purchase an ARIYA.*​
NISSAN[R]
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.
* 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
"The $500 reservation fee is fully refundable at any time to your original form of payment" - This may disqualify the purchase agreement as a valid binding contract.
 

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[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.
 

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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.
 

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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.
 

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[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.
 

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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.
More information gathered from this site (Plug-In Electric Vehicle Credit IRC 30 and IRC 30D | Internal Revenue Service) makes me worried even more about being eligible for the EV tax credit. Specifically this is the IRS' definition of what constitutes 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.

Since we only have a 'refundable' $500 deposit on our Ariya, that does NOT meet the "non-refundable deposit or down payment of 5 percent of the total contract price" condition.

Can someone at Corporate Nissan verify that our binding agreement meets the IRS criteria for a Written Binding Contract???
 

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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.
 

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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.
 

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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.
Thanks for your observation. After reading what you said and re-reading my post, it DOES appear that there are TWO instances of binding contracts the IRS will recognize for tax credit purposes:

1. A contract that one's STATE defines and accepts ... so Ariya reservists may want to research how their state defines and accepts a binding contract. [Here in Illinois, the wording appears to be in my favor ... that is, I DO have a valid binding contract with Nissan.]
2. A contract in which a customer has made a significant, non-refundable deposit ... which apparently is NOT relavant to our Ariya binding agreement with Corporate Nissan.

I just hope the IRS is in agreement with my state's interpretation of a binding contract when tax time comes around!
 
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