Latest EV tax credit status (as of 12/30/22) - summary by NYT

[SANZC02]

Here is a good Q&A from the IRS recently released that answers a lot of questions.

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[freshpow]

Here is a good Q&A from the IRS recently released that answers a lot of questions.

Thanks for sharing. Still doesn't answer the most important question for many of us. If we signed a PBA before 8/16/22 but take delivery after 1/1/23, what happens? Guessing we won't get an answer or clear direction for quite some time, maybe a year from now.

 

[SANZC02]

Thanks for sharing. Still doesn't answer the most important question for many of us. If we signed a PBA before 8/16/22 but take delivery after 1/1/23, what happens? Guessing we won't get an answer or clear direction for quite some time, maybe a year from now.

I think the answer is it is not going to work. There are a couple of IRS pages that specifically state that being for 2022 deliveries, as it references the agreement and delivery between 8/16/2022 and 12/31/2022.

From my interpretation, the lack of any mention of that scenario in 2023 deliveries means it does not exist. Kind of a bummer but there still could be some tax credits if MSRP and AGI limits are met even if not the full 7500.

 

[DTown3011]

Thanks for sharing. Still doesn't answer the most important question for many of us. If we signed a PBA before 8/16/22 but take delivery after 1/1/23, what happens? Guessing we won't get an answer or clear direction for quite some time, maybe a year from now.

Per my accountant I 100% plan to take my credit in 2023 as soon as I have my VIN.

 

[Jac]

Thanks for sharing. Still doesn't answer the most important question for many of us. If we signed a PBA before 8/16/22 but take delivery after 1/1/23, what happens? Guessing we won't get an answer or clear direction for quite some time, maybe a year from now.

As I commented back in comment #126, there seems to be a pretty strong indication of where the IRS is headed on the specific situation many of us are in with our BPAs. If the IRS has said binding purchase agreements signed before August 16 will work to allow EV tax credit eligibility for foreign assembled vehicles only if they were delivered by December 31, what would be the logic for the IRS say pre August 16 binding purchase agreements only will work regarding the assembly location provision for deliveries by year end 2022, but then say the same agreements work for 2023 deliveries to avoid the new income, MSRP or battery sourcing provisions of the same new EV tax credit law?

 

[freshpow]

As I commented back in comment #126, there seems to be a pretty strong indication of where the IRS is headed on the specific situation many of us are in with our BPAs. If the IRS has said binding purchase agreements signed before August 16 will work to allow EV tax credit eligibility for foreign assembled vehicles only if they were delivered by December 31, what would be the logic for the IRS say pre August 16 binding purchase agreements only will work regarding the assembly location provision for deliveries by year end 2023, but then say the same agreements work for 2023 deliveries to avoid the new income, MSRP or battery sourcing provisions of the same new EV tax credit law?

I agree that it looks grim but the logic would be that they have only released BPA guidance for 2022 and will release BPA guidance for 2023, if it applies at all, at the end of 2023 or beginning of 2024.

 

[SASSquatch]

Per my accountant I 100% plan to take my credit in 2023 as soon as I have my VIN.

Just to make sure I'm tracking - when you say 2023, you mean for tax year 2023 (that you will file in 2024)? That is/was/will be my plan.

 

[SASSquatch]

This new guidance has created massive amounts of confusion. My accountant had told me that I would take the credit when filing my 2023 tax returns (filed in April of 2024).

That was assuming that the BPA signed PRIOR to August 16th preserved the full $7,500 tax credit per the old rules. I (barely) exceed the income limit but do not exceed the MSRP, so if they don't clarify the guidance, that will really sting and going back 1 or 2 years won't help in my situation.

 

[SASSquatch]

As I commented back in comment #126, there seems to be a pretty strong indication of where the IRS is headed on the specific situation many of us are in with our BPAs. If the IRS has said binding purchase agreements signed before August 16 will work to allow EV tax credit eligibility for foreign assembled vehicles only if they were delivered by December 31, what would be the logic for the IRS say pre August 16 binding purchase agreements only will work regarding the assembly location provision for deliveries by year end 2022, but then say the same agreements work for 2023 deliveries to avoid the new income, MSRP or battery sourcing provisions of the same new EV tax credit law?

The logic would be that they are referring to eligibility for Tax Year 2022 which would otherwise end on December 31st. They have not made any indications what allowances they will offer for Tax Year 2023 since they have plenty of time to worry about that.

 

[Prime]

This new guidance has created massive amounts of confusion. My accountant had told me that I would take the credit when filing my 2023 tax returns (filed in April of 2024).

That was assuming that the BPA signed PRIOR to August 16th preserved the full $7,500 tax credit per the old rules. I (barely) exceed the income limit but do not exceed the MSRP, so if they don't clarify the guidance, that will really sting and going back 1 or 2 years won't help in my situation.

Income limit is adjusted gross income after deductions so hopefully you have more deductions that will keep you under?

 

[Thedude]

All this talk of accountants and I’m just over typing away on the free HR Block like a poor person.

 

[quartz]

Not sure if this was pointed out, but you can use either ’22 or ’23 MAGI for ‘23 delivery. If one of the two years is below the income threshold, you can claim the credit

 

[brancky3]

All this talk of accountants and I’m just over typing away on the free HR Block like a poor person.

lol nothing wrong with that. I’ve been using Cash App taxes the past few years and it’s excellent. After the standard deduction was raised a few years ago we rarely exceed it so taxes have been super simple

 

[Bobthebuilder352]

It should qualify for a commercial vehicle Section 179 Deduction since it is over 6000 lbs. That deduction is prorated based on the % of business use the vehicle gets. Talk to your business accountant.

https://www.rivianforums.com/forum/threads/section-179-and-federal-ev-rebate-stackable.5574/

Oh yah, I’m already taking plus bonus dep that but it stacked with the EV credit before. Unclear if it does with the new credit and household income cap.

 

[Donald Stanfield]

If you can afford an $80k vehicle you don’t need your lifestyle subsidized by American taxpayers.

I pay… a lot… in federal income taxes. I have no problem getting $7500 back.

Came here to echo TexasCrane's post. Me getting a 7500 dollar credit off my income taxes isn't American taxpayers subsidizing anything. We can look at income taxes however we want, but what I know for certain is that if you take the average of what every American pays and compare it to my personal tax bill I pay quite a bit more than my "fair share"

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