Battery mineral content requirement delayed to March.

[Maxx]

Makes sense. It is kinda like don't ask don't tell before march. If Ford has no label required by Feds on the pack because there was no clear requirement, we should be clear. Wishful thinking, may be. I just need to think that way or I will go bananas in the next 11 days.

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[EdwinT]

I believe the LAST SENTENCE is what we are looking for. Direct from treasury press release….

Before year’s end, Treasury will also release information on the anticipated direction of the critical mineral and battery component requirements that vehicles must meet to qualify for tax incentives in the Inflation Reduction Act. The information will help manufacturers prepare to be able to identify vehicles eligible for the tax credit when the new requirements go into effect.

Treasury will issue a notice of proposed rulemaking (NPRM) in March with proposed guidance on the critical minerals and battery components requirements. By statute, the critical mineral and battery component requirements take effect only after Treasury issues that proposed rule.

Oh baby!! Thats it right from the horse's mouth!!

 

[EdwinT]

Makes sense. It is kinda like don't ask don't tell before march. If Ford has no label required by Feds on the pack because there was no clear requirement, we should be clear. Wishful thinking, may be. I just need to think that way or I will go bananas in the next 11 days.

question is do we still try to sign papers/title before year end to be safe lol

 

[Maxx]

question is do we still try to sign papers/title before year end to be safe lol

I never planned to do that anyway. If you feel comfortable with that deal and potential consequences, your call. For me it is not worth it.

 

[Pioneer74]

It actually literally does say that the new battery rules don’t take effect until the treasury gives guidance in March….

I could only read the first paragraph. Usually it takes an act of Congress to change the rules, but seeing the last paragraph that was quoted, it looks like I was mistaken.

Good luck to those filing for the incentive for 2023 tax year. I see a lot of confusion and audits ahead.

 

[EdwinT]

I could only read the first paragraph. Usually it takes an act of Congress to change the rules, but seeing the last paragraph that was quoted, it looks like I was mistaken.

That’s the thing though…they aren’t changing the rules. The current rule is they have to provide guidance no later than Dec31,2022. Sounds like they are preemptively admitting defeat and saying they’ll get to it later lol. I guess they are breaking their own rule if that’s what you mean. Regardless, what I am saying is the minerals/component rule only applies if guidance is given. I assume because one has to have the info to make an informed decision. After all, the credits are in place to make EVs more lucrative to buy, so if you buy one because of the incentive and then don’t get said incentive…that’s no good.

 

[Pioneer74]

That’s the thing though…they aren’t changing the rules. The current rule is they have to provide guidance no later than Dec31,2022. Sounds like they are preemptively admitting defeat and saying they’ll get to it later lol. I guess they are breaking their own rule if that’s what you mean. Regardless, what I am saying is the minerals/component rule only applies if guidance is given. I assume because one has to have the info to make an informed decision. After all, the credits are in place to make EVs more lucrative to buy, so if you buy one because of the incentive and then don’t get said incentive…that’s no good.

So, if the guidance isn't done, is everybody just assuming they get that $3750, or does that mean that part of the incentive won't be available?

 

[boggle]

Wow! an early Christmas gift from our government's incompetence. I'll allow it.

 

[jimfigler]

I’m guessing you’ll get $7500 until at least March granted that you still meet the MSRP, income and tax liability requirements.

 

[EdwinT]

So, if the guidance isn't done, is everybody just assuming they get that $3750, or does that mean that part of the incentive won't be available?

The new law would be in affect is my thought. All other rules don’t require guidance.

The vehicle cap is understood
The made in North America is understood
The salary cap is understood
MSRP cap is understood
Etc

What requires guidance is the minerals/components. As to what exactly this means, how they will quantify it (across the manufacture or per vehicle etc), what proof is required, etc etc. There is a ton that is very unclear. Could you imagine you and I buying the exact same truck but then for some reason 70% of your pack came from the Congo and 40% of mine came from Puerto Rico, so I get the incentive but not you. There are so may rules they have to lay out.

 

[256fail]

Am I still safe under the assumption that this does nothing (even temporarily) to the newly imposed income caps in 2023?

In other words, is the whole program on pause until March or just parts?

 

[EdwinT]

Am I still safe under the assumption that this does nothing (even temporarily) to the newly imposed income caps in 2023?

In other words, is the whole program on pause until March or just parts?

I would say the entire program is in affect except for the items needing further guidance. For instance, the final assembly in north America is currently in affect and will still be in affect till March. I could be wrong but this is how I would/am taking it. See my post above

 

[metroshot]

I’m guessing you’ll get $7500 until at least March granted that you still meet the MSRP, income and tax liability requirements.

Yes, that's what I am reading too.

So once Treasury defines the rules - the big question I have:

Post March 2023, will you get half credit ($3750) for an EV being made in North America ?

Or does the entire amount depend on the battery sourcing / assembly ??

Confused ???

 

[RickLightning]

I would say the entire program is in affect except for the items needing further guidance. For instance, the final assembly in north America is currently in affect and will still be in affect till March. I could be wrong but this is how I would/am taking it. See my post above

It may AFFECT things, but right now the program is in EFFECT.

 

[RickLightning]

Yes, that's what I am reading too.

So once Treasury defines the rules - the big question I have:

Post March 2023, will you get half credit ($3750) for an EV being made in North America ?

Or does the entire amount depend on the battery sourcing / assembly ??

Confused ???

If your vehicle isn't made in North American, you get squat.

If you pass hurdle #1, there are two components - $3,750 for battery assembly and $3,750 for battery sourcing.

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