2022 vs 2023 Federal Rebates

[Tighlines]

I'm looking for an accountant (or just someone to act like one) and give me some insight as to whether the federal rebate will still apply for the Taycan in 2023. My dealer tells me it does apply in 2022 but I believe the new Inflation Reduction Act will cut it out.
I currently have a scheduled delivery of a 4S CT Nov 25, 2022 but I am confident it will be delayed into 2023.
Does anyone have any knowledge or experience with this issue?

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[whan]

Did you place a non-refundable deposit of at least 5% with the dealer before August 16th? If so, you will get the old $7500 tax credit. If not (especially if no deposit at all), then you will not unfortunately

Taycan is not eligible for any rebate or tax credit (since it's assembled in Germany) if delivered after August 16th, with the only exception being if you had a non-refundable deposit placed before that point in time

 

[JamesDD]

I agree with this assessment. What I find irritating about it is that the IRS document defining a binding contact as a non refundable deposit equal or greater than 5% of purchase price was updated on August 16th. That is the same day the Act came into effect. This left no time for people with completed cars waiting for batteries to adjust their deposits if they fell short of 5%. Maybe this was intended by the government.

 

[Tighlines]

Did you place a non-refundable deposit of at least 5% with the dealer before August 16th? If so, you will get the old $7500 tax credit. If not (especially if no deposit at all), then you will not unfortunately

Taycan is not eligible for any rebate or tax credit (since it's assembled in Germany) if delivered after August 16th, with the only exception being if you had a non-refundable deposit placed before that point in time

I placed my deposit in January but it was less than 5%. If I would have known, I def would have met the 5% requirement. Sounds like something I need to address with my dealer.
If the car does deliver in 2022, does this still apply or this only for 2023 deliveries?
Thanks

 

[whan]

Unfortunately it applies to delivery in 2022 as well. The bill went into effect on Aug 16th. Any cars between then and YE 2022 now also need to be assembled in North America, in addition to the previous rules, to qualify for credit. In 2023 a bunch of new rules replace the old ones, removing the vehicle cap (so tesla qualifies again), but adds income caps, North America assembly, requirements on where the battery is sourced etc.

The only exemption to all of the below is the nonrefundable deposit prior to Aug 16

 

[Redhot2474]

Did you place a non-refundable deposit of at least 5% with the dealer before August 16th? If so, you will get the old $7500 tax credit. If not (especially if no deposit at all), then you will not unfortunately

Taycan is not eligible for any rebate or tax credit (since it's assembled in Germany) if delivered after August 16th, with the only exception being if you had a non-refundable deposit placed before that point in time

Exactly

 

[Tooney]

The text of the transition rule in the law that passed specifies that the taxpayer must have entered into a written binding contract to purchase a new EV. The law does not specify any minimum deposit.

If the agreement you signed with the dealer is a written binding contract under the laws of your state, it meets the requirement of the law's transition rule as enacted.

The document the IRS released about the Clean Vehicle Credit is explanatory guidance, not the law.

If the agreement you have with your dealer to purchase the car is written and is binding in your state, you meet the requirements of the law.

Excerpt from so-called Inflation Reduction Act, Section 13401, Clean Vehicle Credit.

"(l) Transition Rule.—Solely for purposes of the application of section 30D of the Internal Revenue Code of 1986, in the case of a taxpayer that—​

​

(1) after December 31, 2021, and before the date of enactment of this Act, purchased, or entered into a written binding contract to purchase, a new qualified plug-in electric drive motor vehicle (as defined in section 30D(d)(1) of the Internal Revenue Code of 1986, as in effect on the day before the date of enactment of this Act), and​

​

(2) placed such vehicle in service on or after the date of enactment of this Act,​

​

such taxpayer may elect (at such time, and in such form and manner, as the Secretary of the Treasury, or the Secretary's delegate, may prescribe) to treat such vehicle as having been placed in service on the day before the date of enactment of this Act."​

 

[Deleted member 6348]

Even if the Taycan was assembled in the United States, it would be priced out of consideration of the new rebate system.

Most people who can afford a Taycan also exceed the income limits.

While it may be a bummer for some, the act does help those who have less than Taycan means buy an electric car. It was kind of silly that the government was giving the wealthy a tax credit for buying a six figure car.

 

[Kayone73]

I'm looking for an accountant (or just someone to act like one) and give me some insight as to whether the federal rebate will still apply for the Taycan in 2023. My dealer tells me it does apply in 2022 but I believe the new Inflation Reduction Act will cut it out.
I currently have a scheduled delivery of a 4S CT Nov 25, 2022 but I am confident it will be delayed into 2023.
Does anyone have any knowledge or experience with this issue?

You missed some incredibly long and detailed discussions about this in multiple previous threads.

Short answer: it's complex and ultimately will depend on how the IRS chooses to implement the new tax code and EV buyers file their 2022 taxes next year.

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