Non-refundable deposit as proof of order?

[world2steven]

Looks like there are a bunch of conditions in the IRA that could tube credits even for those of us who have purchased or will purchase an EV this year? Two questions:

1. If we purchased and are driving a foreign-made EV, e.g. Kia or Hyundai, will we get the credit?
2. Does the non-refundable $500 deposit for a Lightning count as a firm order?

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[world2steven]

Looks like there are a bunch of conditions in the IRA that could tube credits even for those of us who have purchased or will purchase an EV this year? Two questions:

1. If we purchased and are driving a foreign-made EV, e.g. Kia or Hyundai, will we get the credit?
2. Does the non-refundable $500 deposit for a Lightning count as a firm order?

News flash. Just saw something that said Biden signed the bill so whatever it says is now apparently law.

 

[cvalue13]

Looks like there are a bunch of conditions in the IRA that could tube credits even for those of us who have purchased or will purchase an EV this year? Two questions:

1. If we purchased and are driving a foreign-made EV, e.g. Kia or Hyundai, will we get the credit?
2. Does the non-refundable $500 deposit for a Lightning count as a firm order?

Look for actual guidance fromyour tax professional, but as non-official guidepost:

1. If you have already before today purchased and taken delivery of a foreign-made EV, then you should be able to elect to apply the prior version of the EV credit (assuming there are not other disqualifications, like the 200k cap)

2. no one knows until the IRS hands down it’s guidance, which will likely be months away, and will possibly rely on state laws where the agreement was reached; that said, if it were a non-refundable deposit on an actually-ordered vehicle with a VIN, you may be in a more optimistic posture than others. That said, if you take delivery of an F150L during 2022, the “binding” nature of that deposit is probably irrelevant (whereas if you do not take delivery until 2023, it may be important, depending on the IRS guidance, etc.)

Almost all analysts agree: the only portion of the law in effect as of signing today is the Noerh-American assembly requirement, immediately rendering foreign-assembled EVs ineligible for the tax credit (absent a prior ‘binding’ agreement, whatever that turns out to mean)

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