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[whan]

I think the wording that is on that page and the IRS is confusing, but what it means to say is that for cars purchased and delivered 8/16/22 - 12/31/22, you can only get the credit if the car passes the previous rules AND is assembled in North America. So it has to both be below the cap (Tesla, GM are out), but also be US built, which really is just the Mustang Mach E I think. Key blurbs from the IRS doc that the fueleconomy.gov links to

"If you are interested in claiming the tax credit available under section 30D (EV credit) for purchasing a new electric vehicle after August 16, 2022 (which is the date that the Inflation Reduction Act of 2022 was enacted), a tax credit is generally available only for qualifying electric vehicles for which final assembly occurred in North America (final assembly requirement)"

"If you entered into a written binding contract to purchase a new qualifying electric vehicle before August 16, 2022, but do not take possession of the vehicle until on or after August 16, 2022 (for example, because the vehicle has not been delivered), you may claim the EV credit based on the rules that were in effect before August 16, 2022. The final assembly requirement does not apply before August 16, 2022."

In particular based on the first quoted text, this is meant to imply that final assembly requirement is added as a new requirement on Aug 16. Hence why the text in the 8/16-12/31 part says "aside from the final assembly requirement, the rules in effect before the enactment of the Inflation Reduction Act for the EV credit apply".

"Aside from final assembly requirement" meaning that it's been added on top of the previous rules, because come 1/1/23 the rules fully change where there is no longer a manufacturer vehicle cap, but other requirements come into play regarding battery sourcing geography, etc.

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[whitex]

I think the wording that is on that page and the IRS is confusing, but what it means to say is that for cars purchased and delivered 8/16/22 - 12/31/22, you can only get the credit if the car passes the previous rules AND is assembled in North America. So it has to both be below the cap (Tesla, GM are out), but also be US built, which really is just the Mustang Mach E I think. Key blurbs from the IRS doc that the fueleconomy.gov links to

"If you are interested in claiming the tax credit available under section 30D (EV credit) for purchasing a new electric vehicle after August 16, 2022 (which is the date that the Inflation Reduction Act of 2022 was enacted), a tax credit is generally available only for qualifying electric vehicles for which final assembly occurred in North America (final assembly requirement)"

"If you entered into a written binding contract to purchase a new qualifying electric vehicle before August 16, 2022, but do not take possession of the vehicle until on or after August 16, 2022 (for example, because the vehicle has not been delivered), you may claim the EV credit based on the rules that were in effect before August 16, 2022. The final assembly requirement does not apply before August 16, 2022."

In particular based on the first quoted text, this is meant to imply that final assembly requirement is added as a new requirement on Aug 16. Hence why the text in the 8/16-12/31 part says "aside from the final assembly requirement, the rules in effect before the enactment of the Inflation Reduction Act for the EV credit apply".

"Aside from final assembly requirement" meaning that it's been added on top of the previous rules, because come 1/1/23 the rules fully change where there is no longer a manufacturer vehicle cap, but other requirements come into play regarding battery sourcing geography, etc.

The wording in my earlier post clearly states old rules apply to cars not assembled in North America bought and delivered between August 16,2022 and December 31, 2022.

If you purchase and take possession of a qualifying electric vehicle between August 16, 2022 and December 31, 2022, final assembly of the vehicle had to be completed in North America, otherwise the same rules in effect prior to the enactment of the Inflation Reduction Act apply (including those involving the manufacturing caps on vehicles sold).

The key here is "otherwise", as in, if your car is not assembled in North America, the old rules apply before 1/1/2023 which is when the new law takes effect. From what I read so far, cars bought after the signing of the new law (8/16/2022) but before it officially takes effect (1/1/2023) can claim the new rebate (no longer a tax credit) if they assembled in North America.

This actually makes sense, since the new law doesn't take effect until next year, leaving old rules in effect until then. The fact that new law also grandfathers-in cars from before it takes effect (both assembled in NA and having binding deposit pre 8/16) is just a measure meant to ease the transition to the new rules (reduce complaints, people cancelling orders, people holding off on making orders until next year). This way if it's eligible next year, it is eligible today, but the reverse is not true - if it's not eligible next year, it doesn't mean it's not eligible today (if it's a thumb it's a finger, if it's a finger it doesn't mean it's a thumb ).

 

[whan]

The wording in my earlier post clearly states old rules apply to cars not assembled in North America bought and delivered between August 16,2022 and December 31, 2022.

The key here is "otherwise", as in, if your car is not assembled in North America, the old rules apply before 1/1/2023 which is when the new law takes effect. From what I read so far, cars bought after the signing of the new law (8/16/2022) but before it officially takes effect (1/1/2023) can claim the new rebate (no longer a tax credit) if they assembled in North America.

This actually makes sense, since the new law doesn't take effect until next year, leaving old rules in effect until then. The fact that new law also grandfathers-in cars from before it takes effect (both assembled in NA and having binding deposit pre 8/16) is just a measure meant to ease the transition to the new rules (reduce complaints, people cancelling orders, people holding off on making orders until next year). This way if it's eligible next year, it is eligible today, but the reverse is not true - if it's not eligible next year, it doesn't mean it's not eligible today (if it's a thumb it's a finger, if it's a finger it doesn't mean it's a thumb ).

Yeah, unfortunately I think the agency in your link messed up the wording by using "otherwise", as all the other sources point to it requiring NA assembly for any cars from August to the rest of this year. They also link to the IRS page in your page as the main reference guide, which uses the "aside" language. The Gov link that the other user posted also makes it very clear that it's adding a final assembly requirement

https://afdc.energy.gov/laws/409

Ultimately, the tax credits and rebates are handled within the IRS/treasury department as it's part of the internal revenue code, so whatever is on the IRS website is what is the most official guidance

There also is a document from treasury that specifically says its an addition of the Americas assembly requirement effective immediately

https://home.treasury.gov/system/files/136/EV-Tax-Credit-FAQs.pdf

"Effective immediately after enactment of the Inflation Reduction Act (after August 16, 2022), the tax credit is only available for qualifying electric vehicles for which final assembly occurred in North America. Further changes to the eligibility rules will begin in 2023."

 

[whitex]

Yeah, unfortunately I think the agency in your link messed up the wording by using "otherwise", as all the other sources point to it requiring NA assembly for any cars from August to the rest of this year. They also link to the IRS page in your page as the main reference guide, which uses the "aside" language. The Gov link that the other user posted also makes it very clear that it's adding a final assembly requirement

https://afdc.energy.gov/laws/409

Ultimately, the tax credits and rebates are handled within the IRS/treasury department as it's part of the internal revenue code, so whatever is on the IRS website is what is the most official guidance

There also is a document from treasury that specifically says its an addition of the Americas assembly requirement effective immediately

https://home.treasury.gov/system/files/136/EV-Tax-Credit-FAQs.pdf

"Effective immediately after enactment of the Inflation Reduction Act (after August 16, 2022), the tax credit is only available for qualifying electric vehicles for which final assembly occurred in North America. Further changes to the eligibility rules will begin in 2023."

So a usual clusterfuck of government bureaucrats not able to communicate consistently? As long as their mistakes make them money, that's ok, right? That said, since the new law doesn't officially take effect until 1/1/2023, how can it change anything today? If they intended to change the rules for this year, they would have had to make the law take effect this year. I presume cars which are grandfathered in don't get to claim the new rebate until 2023 taxes (so in 2024).

 

[whan]

Ha, yeah typical government mess.

Unfortunately I think the broader Inflation Reduction act took into effect when it was signed by Biden, so some provisions are immediate and others have certain in-effect dates

 

[whitex]

Ha, yeah typical government mess.

Unfortunately I think the broader Inflation Reduction act took into effect when it was signed by Biden, so some provisions are immediate and others have certain in-effect dates

I wonder what liability government organizations have for publishing incorrect information. My guess is they give themselves full immunity for any damage resulting from their disseminating false information.

PS> I also find it a bit concerning that "Inflation Reduction" act attempts to fight inflation by pumping so much more free money into the economy. "Oh look, the house is on fire. Hmm... let's see if we can put it out by pouring more gasoline onto the fire".

 

[whan]

I wonder what liability government organizations have for publishing incorrect information. My guess is they give themselves full immunity for any damage resulting from their disseminating false information.

PS> I also find it a bit concerning that "Inflation Reduction" act attempts to fight inflation by pumping so much more free money into the economy. "Oh look, the house is on fire. Hmm... let's see if we can put it out by pouring more gasoline onto the fire".

Particularly with the student loan forgiveness... estimated to cost more than all of the projected "savings" from the IRA legislation

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