Latest Possible Build Date for 2022 Tax Credits?

[TheBigBezo]

With the IRA having passed, and 2022 being the last year before the MSRP cap, when do y'all think is the limit to have a build date that could possibly deliver before the new year? Scrolling through the order tracker, it seems to vary with an average roughly around 30 days. So for those of us like myself still waiting to order, if we can squeeze a Lariat ER out with a build date prior to the end of November, there's a chance we get the credit? Quite the gamble!

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[bewbie]

Same boat an also wondering the same!

 

[Pioneer74]

Close to the plant could be delivered in a week, so maybe second week of December. Florida, Southeast or Northeaset, maybe 10 days to 2 weeks so first week of December. Anything west of the Mississippi, I would guess if you don't have a build date before Thanksgiving, you won't get it before the end of the year.

These are total guesses and do not take into account any chip or material holds.

 

[TaxmanHog]

Quite the gamble!

To many unpredictable factors to give a flat accurate response, cross your fingers it arrives and you take possession and apply for license/title by COB 12/31/2022, how many State DMV's are open on a Saturday afternoon, make that 12/30/2022 Friday.

 

[Amps]

apply for license/title by COB 12/31/2022

Is this because of a nuance between sale date and 'in-service' date?

 

[Lime Green]

If you have a purchase contract in place with a deposit, you should still be good for the '22 tax credit!!! There is a transition clause for vehicles in the process of being purchased to still qualify for the '22 incentives. I have not read the final version of the transition, but you may need to increase your deposit amount to solidify it. Automakers like Porsche, Rivian and Tesla are allowing customers to put down the necessary deposit to ensure they get their credits. Then the vehicle can be delivered to the customer any time in 2023.

Outside of the transition clause, the terms are what they have always been for delivery timing. It goes off of when the vehicle is placed into service, which means for most people when they complete the purchase and take delivery. So if you take delivery before January 1st '23, then the '22 credits apply...

So, transition clause will be a big deal for some of us. My Lighting got bumped to '23 and it's a bit over the $80K limit, so I'm hoping I can get the '22 incentive.

 

[metroshot]

If the vehicle is in transit, can the dealer make the sale so that effectively the date can be done before 12/31/22 ?

 

[wheelz2000]

If you have a purchase contract in place with a deposit, you should still be good for the '22 tax credit!!! There is a transition clause for vehicles in the process of being purchased to still qualify for the '22 incentives. I have not read the final version of the transition, but you may need to increase your deposit amount to solidify it. Automakers like Porsche, Rivian and Tesla are allowing customers to put down the necessary deposit to ensure they get their credits. Then the vehicle can be delivered to the customer any time in 2023.

Outside of the transition clause, the terms are what they have always been for delivery timing. It goes off of when the vehicle is placed into service, which means for most people when they complete the purchase and take delivery. So if you take delivery before January 1st '23, then the '22 credits apply...

So, transition clause will be a big deal for some of us. My Lighting got bumped to '23 and it's a bit over the $80K limit, so I'm hoping I can get the '22 incentive.

Let's all keep our fingers crossed that we get invites and Ford all of a sudden delivers in record time. slim chance at this point...but I will wish for it anyway.

 

[TaxmanHog]

Off topic, flash backs of knuckleheads lining up at the USPS mail box to drop off their tax returns at 23:59:59, as the postal staff are standing in the drive-loop accepting receipt and control of tax returns to be post-marked 4/15.

 

[Roy2001]

$300k income limit would also be an issue next year.

 

[Amps]

$300k income limit would also be an issue next year.

I wish it was for me.

 

[Maquis]

To many unpredictable factors to give a flat accurate response, cross your fingers it arrives and you take possession and apply for license/title by COB 12/31/2022, how many State DMV's are open on a Saturday afternoon, make that 12/30/2022 Friday.

One of the few advantages of being in Illinois (there aren’t many!) in this case is that the DMV have pushed all new car titling and registration transactions out to dealers as a cost-saving measure. It’s all done at the dealer - no trip to DMV required. Gave the dealers an excuse to add another $100 to their doc fee!
Some other states may also do this.

 

[cvalue13]

To many unpredictable factors to give a flat accurate response, cross your fingers it arrives and you take possession and apply for license/title by COB 12/31/2022, how many State DMV's are open on a Saturday afternoon, make that 12/30/2022 Friday.

youre the tax guy, but I’m surprised at this little nuance! I would think (it sounds incorrectly) that completion of sale would be defensible enough for IRS purposes of taking delivery/in service?

You really think the IRS will be looking instead to a state registration function that has nothing to do with ownership of the property?

or perhaps you’re giving the most conservative answer absent yet guidance from the IRS?

If you have a purchase contract in place with a deposit, you should still be good for the '22 tax credit!!! There is a transition clause for vehicles in the process of being purchased to still qualify for the '22 incentives. I have not read the final version of the transition, but you may need to increase your deposit amount to solidify it. Automakers like Porsche, Rivian and Tesla are allowing customers to put down the necessary deposit to ensure they get their credits. Then the vehicle can be delivered to the customer any time in 2023.

Outside of the transition clause, the terms are what they have always been for delivery timing. It goes off of when the vehicle is placed into service, which means for most people when they complete the purchase and take delivery. So if you take delivery before January 1st '23, then the '22 credits apply...

So, transition clause will be a big deal for some of us. My Lighting got bumped to '23 and it's a bit over the $80K limit, so I'm hoping I can get the '22 incentive.

Do not get your hopes up on this. Your comments above don’t accurately enough state the transition rule bits relevant to OPs (and many other’s) scenarios, specifically:

(1) a sufficient contract needed to be in place the day before the bill was signed into law (weeks ago)

(2) what is a “sufficient” sales contract is not yet knowable because the IRS hasn’t issued guidance, but the IRS has already fired a clarifying shot over the bow that strongly suggests that the IRS was watching Rivian and the other manufactures cute little attempts to mislead customers, as the IRS’s first and only comments to date clarified that among the many indices of “binding” it will consider a primary indices is whether:

(A) there was a deposit
(B) it was non-refundable, and
(C) if the deposit was a material amount of the MSRP, with >5% being a threshold the IRS will look to

Now, this will be a “weighing test,” so it is theoretically possible that a given contract could have <5% non-refundable deposit and due to enough counter-considerations in the contract be argued/determined sufficiently “binding,” but I strongly suspect that will not be true very often if ever.

In particular, knowing the Ford ordering system and having read the cute little Rivian contracts, that those scenarios will not be found as anywhere near sufficiently binding to qualify for the transition rule.

Of course, this all comes down to a question of a persons risk appetite for an audit and resulting penalties for an adverse finding.

 

[cvalue13]

If the vehicle is in transit, can the dealer make the sale so that effectively the date can be done before 12/31/22 ?

really interesting question that at the moment appears to depend on:

(1) any IRS nuance like the one @TaxmanHog appears to have flagged above RE registration (!?) being relevant to delivery/in service

and

(2) a given dealer’s appetite for completing a contract when still in transit - I’m sure many would, but wouldn’t be surprised to find a dealer with some aversion to it for a reason I don’t appreciate

But finding the answer to this from both the IRS view generally, and a customer’s dealer view specifically, really could end up meaning the doffer nice between some folks putting their vehicle “in service” before 12/31/22 or not

 

[TaxmanHog]

perhaps you’re giving the most conservative answer absent yet guidance from the IRS?

I'm biting my tongue as hard as I can, I learned long ago during my active duty career not to express opinions until policy & counsel have reviewed and issued guidance.

Hence my lack of participation on a variety of threads looking of commentary, this was not my wheel house back in the day and I don't pretend to know any better than some of those who are expressing their opinions.

Expressions of my actual experiences with return processing and collection activities are factual life experiences, humor included.

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