[Mike_in_Texas]

Here’s what you need to know about the new EV tax credit for 2023

How the credit works for new and used EVs—also, see a list of qualifying cars.

arstechnica.com

Not sure this will address the questions regarding folks who have a Rivian (binding?) deposit in but haven't taken delivery, but in any case, it's a good summary / reminder of what's happening with the revised credit bill that passed last year.

Also, here's a direct link to the IRS list of vehicles (so far) purchased in 2023 or later:

Manufacturers and Models for New Qualified Clean Vehicles Purchased in 2023 or After | Internal Revenue Service

List of vehicles that are eligible for a 30D clean vehicle tax credit and the amount of the qualifying credit, if purchased between 2023 and 2032.

www.irs.gov

 

[Yossarian]

Thanks @Mike_in_Texas. Determining EV tax credit has become the definition of something that as Churchill is reported to have said - a riddle, wrapped in a mystery, inside an enigma.

From what I can see, the only way to take advantage of the full $7,500 credit under the more relaxed rules is to take delivery of your EV before the IRS issues its new guidance in March. My guess is that the battery sourcing requirements will wind up being an issue for many, probably most, manufacturers. It seems prudent to assume that after March, the maximum credit available to Rivian buyers is likely to be $3,750.

The FAQ page on the IRS website offers some additional information that some may find useful.

 

[thebishman]

Thanks @Mike_in_Texas. Determining EV tax credit has become the definition of something that as Churchill is reported to have said - a riddle, wrapped in a mystery, inside an enigma.

From what I can see, the only way to take advantage of the full $7,500 credit under the more relaxed rules is to take delivery of your EV before the IRS issues its new guidance in March. My guess is that the battery sourcing requirements will wind up being an issue for many, probably most, manufacturers. It seems prudent to assume that after March, the maximum credit available to Rivian buyers is likely to be $3,750.

The FAQ page on the IRS website offers some additional information that some may find useful.

Do you believe that the full credit will be available to those of us with a ‘signed’ contract along with a deposit in ‘22, but that won’t be taking delivery until late ‘23?

 

[Yossarian]

Do you believe that the full credit will be available to those of us with a ‘signed’ contract along with a deposit in ‘22, but that won’t be taking delivery until late ‘23?

From what I can see, the tax experts (of which I am definitely not one) seem to be split on the PBA issue, with the majority saying that the agreement as written will not pass muster with the IRS. The problem seems to be that the Rivian PBA does not have a high enough threshold to be binding; apparently, the IRS wants to see 5% of the contract cost at risk. The Rivian PBA states only $100 would be forfeited, so well below that threshold. There are any number of threads on the forum that address the issue, many of which have input from tax experts.

We won't know what the IRS will actually require until March, but I'm personally not counting on anything beyond the $3,750 credit for US-made BEV's.