[JrBrowzer]

Hope I word this correctly. The president recently signed the IRA which will allow a tax credit henceforth on EVs built in North America. As that will be a few years out for all car manufacturers, am I correct in thinking Ariya owners who signed the purchase agreement before the Act was signed will be grandfathered as part of the earlier Tax Credit incentive in which car manufacturers would have the EV credit for the first 200,000 vehicles they sell (last I checked Nissan was slated to surpass this in Q1 2023)?

 

[bufkey]

You need to have a valid binding contract before 08/16/22 to qualify for the $7500 tax incentive during the transition. IRA provides generic definition of the binding contract as having a non-refundable deposit of %5 or more, but also leaves it up to state laws.

Currently, the IRS is collecting comments on the EV Tax Incentive changes here: Regulations.gov
Lots of people have provided their comments, and I myself suggested the binding contract to include all pre-orders and reservations placed before 08/16/22.

 

[EarlyEVadopter]

Hope I word this correctly. The president recently signed the IRA which will allow a tax credit henceforth on EVs built in North America. As that will be a few years out for all car manufacturers, am I correct in thinking Ariya owners who signed the purchase agreement before the Act was signed will be grandfathered as part of the earlier Tax Credit incentive in which car manufacturers would have the EV credit for the first 200,000 vehicles they sell (last I checked Nissan was slated to surpass this in Q1 2023)?

View attachment 692

The “transition rule” of the IRA applies here. One can only speculate at this point if the IRS will accept Nissans document as a binding agreement with respect to the language contained in the transition rule segment. To avoid running the risk of short paying my tax burden for 2022 and possibly owe an interest penalty, I plan to file initially with no EV tax credit shown on my return. Soon thereafter I will follow up with an amended 2022 return and include the EV tax credit.

 

[Udon123]

If I bought the car in Feb 2023, should I file the credit the following year 2024 for the 2023 income tax?

 

[CADGISEngr]

If I bought the car in Feb 2023, should I file the credit the following year 2024 for the 2023 income tax?

That is correct. However, you must check the rules. IF you qualify for the tax credit.

 

[voxel]

If I bought the car in Feb 2023, should I file the credit the following year 2024 for the 2023 income tax?

At this point we don't know. IRS will need to modify the form to allow the 8/15 2022 service date apply to a future tax year like 2023 or 2024.

Currently, I see folks need to apply the EV tax credit to the 2022 tax year because of the "in service" date language in IRA.

 

[voxel]

Hope I word this correctly. The president recently signed the IRA which will allow a tax credit henceforth on EVs built in North America. As that will be a few years out for all car manufacturers, am I correct in thinking Ariya owners who signed the purchase agreement before the Act was signed will be grandfathered as part of the earlier Tax Credit incentive in which car manufacturers would have the EV credit for the first 200,000 vehicles they sell (last I checked Nissan was slated to surpass this in Q1 2023)?

Once a car manufacturer hits 200K they have one more quarter at full $7500 credit so if you are following the old rules then Nissan has until Q3 before the phase out begins (two quarters at 50% then two more at 25%)

This point is moot because all your "transition rule" cars are applied to be in service "before 8/16/2022" and the 200K cap disappears for new EVs in 2023.

 

[improvius]

Bottom line is you should consult a tax professional in your state before making a decision. As the law is worded, the definition of "binding contract" will vary from state to state.

 

[jcarlet49]

You need to have a valid binding contract before 08/16/22 to qualify for the $7500 tax incentive during the transition. IRA provides generic definition of the binding contract as having a non-refundable deposit of %5 or more, but also leaves it up to state laws.

Currently, the IRS is collecting comments on the EV Tax Incentive changes here: Regulations.gov
Lots of people have provided their comments, and I myself suggested the binding contract to include all pre-orders and reservations placed before 08/16/22.

QUOTE]Correct on the IRS quote. The IRS regulation implements a law that currently pretty much excludes a tax credit for everyone selling or purchasing EVs.