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As I'm reading more about Manchin's turnabout that now enables the Build Back Better bill (which most certainly will then become law), I've found some very important elements that really throw a wrench at all of us waiting for our Ariyas.
Here's the details (cut/paste from here). My comments are in red below.
In summary, Build Back Better helps anyone who is planning to purchase a Tesla, and helps some Ford EV, and most GM EV purchasers; but it specifically hurts (or at least dramatically complicates) the ability for buyers of the Nissan Ariya to now claim the $7500 EV tax credit.
New Vehicle Credit
NOTE: I'm posting this fairly quickly and haven't read through everything else, but so far I am not liking what I'm seeing. Nissan appears to be getting screwed on this deal.
Here's the details (cut/paste from here). My comments are in red below.
In summary, Build Back Better helps anyone who is planning to purchase a Tesla, and helps some Ford EV, and most GM EV purchasers; but it specifically hurts (or at least dramatically complicates) the ability for buyers of the Nissan Ariya to now claim the $7500 EV tax credit.
New Vehicle Credit
- Manufacturer caps eliminated. (Page 370, line 15) For all of us with the current preorders, this was is not relevant because we already were going to be within the 200,000 unit cap.
- Credit applies for vehicles purchased beginning January 1, 2023. (Page 386, line 1).
- Transition provision for EVs with written sales orders dated in 2022 prior to the date of President signing the bill but delivered in 2023 allows purchaser to claim the “old” credit in 2023. (Page 386, line 20). This appears to suggest that we can still get access to the 'old' (pre-Build Back Better) credit of $7500, but only if you figure out how to navigate this "transition provision", which previously wasn't necessary. This (in my opinion) makes what was already complicated, now even more complicated if you are buying a non US-made EV like the Ariya, that already was within the 200,000 EV credit unit cap)
- Vehicle must be assembled in North America to qualify for new credit. (Page 366, line 15). US-bound Ariya's are all built in Japan, so they won't qualify for the 'new' credit (which is the same as the old one of $7500, but isn't capped at 200,000 units)
- North American assembly requirement applies to vehicles sold after the date of adoption of the bill. (Page 386, line 3)
- $7,500 credit is broke into two binary pieces meaning the vehicle either qualifies for each piece of the credit or it doesn’t. No longer based on size of battery. (Page 366, line 6)
- $3,750 of the new credit is based upon the vehicle having at least 40% of its battery critical minerals from the United States or countries with a free trade agreement with the United States. This is a list of countries with free trade agreements with the US.(Page 371)
- The other $3,750 of the new credit is based on at least 50% of the battery components of the vehicle coming from the United States or countries with a free trade agreement with the US. (Page 372, line 13)
- The 40% minerals requirement increases to 50% in 2024, 60% in 2025, 70% in 2026 and 80% in 2027. (page 371 line 23)
- The 50% battery components requirement increases to 60% in 2024, 70% in 2026, 80% in 2027, 90% in 2028 and 100% in 2029. (Page line 373)
- The government has until the end of the year to develop guidance on the battery requirements. (Page 374)
- Beginning in 2025, any vehicle with battery minerals or components from a foreign entity of concern are excluded from the tax credit. (Page 374, line 20).
- One credit per vehicle. (Page 375, line 12)
- Modified gross income limit of $150k for individuals, $225k for head of household, and $300k for joint returns. Definition of MAGI (page 375, line 22)
- MSRP of vehicle must be $80k or less for SUVs, Vans and Trucks. $55k for all other vehicles. (Page 377, line 4)
- Dealer can apply credit at time of sale. Dealer must disclose to buyer the MSRP of the vehicle, the applicable tax credit amount and the amount of any other available incentive applicable to the purchase. (Page 378, line 6)
- Credit terminates December 31, 2032.
NOTE: I'm posting this fairly quickly and haven't read through everything else, but so far I am not liking what I'm seeing. Nissan appears to be getting screwed on this deal.