Federal Tax Credit -- What happens if someone gets into a binding agreement today before the new bill is signed?

[MatrixBlind]

So What happens if someone gets into a binding agreement today before Biden has signed... Are they eligible for the the credit. Seems like a gray area

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[Kayone73]

It's gonna be a Grey area for sure because even if you get a binding contract signed in time, wether it's accepted or not, is 100% at the mercy of the IRS, and good luck trying bargain/complain at them.

 

[MatrixBlind]

True but I am assuming there will be some clarity before the tax season from the IRS... But at least this gives you a shot at it

 

[Kayone73]

True but I am assuming there will be some clarity before the tax season from the IRS... But at least this gives you a shot at it

Yes only time will tell once everyone with a binding contract to buy an EV file their 2022 federal returns. Will be interesting to see how many of those returns are accepted versus rejected depending on their interpretation of the exact language of this new EV tax credit bill.

 

[MatrixBlind]

I hope they say starting next month or something. Seems unfair if you genuinely bought a car today Especially since Biden hasnt signed yet.... Is there any news if it was forwarded to him yet ?

 

[fgwinn]

So What happens if someone gets into a binding agreement today before Biden has signed... Are they eligible for the the credit. Seems like a gray area

You should qualify for the credit. Make sure the order document does not say "this is not an offer". If the car is delivered in 2023 it's not clear whether the credit should be taken in 2022 or 2023. I say this because the IRA text says transactions that qualify as "transition" orders can be treated as if they were completed the day before Biden signs the bill.

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