@palyamrao - okay, I see your point.
I think we have to read these two links together as I believe your situation is covered.
https://www.irs.gov/credits-deductions/credits-for-new-electric-vehicles-purchased-in-2022-or-before
https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after
- to obtain the EV credit, the North American manufacturing requirement is required on all purchases occuring on or after 8/17/22
- However, there is one exception: if there was a binding contract in place on 8/16/22 and possession occured no later than 12/31/22, then the North Amrerican manufacturing requirement doesn't apply.
You haven't purchased the vehicle as you probably don't have legal title; you have a binding contract where certain terms and conditions need to be satisfied to get to 'purchase and sale'. Further, if "binding contract" and "purchase" were the same thing, the IRS wouldn't have changed the wording and created any confusion. "Binding contract" precedes "purchase" and the two activities do not occur simultaneously.
My read of the rules is those with a binding contract had to the end of the year to take possession and avoid the North American manufacturiung requirment. The IRS limited the transition rules window to 4.5 months and wasn't going to let the exception go on for even more months (or years).
My conclusion is that since possession won't occur until 2023 and the automobile will be not be manufactured in North America, the car is not eligible for the EV credit.
Might be worth discussing your contract with the dealer, I suspect they and Magna are dealing with this issue on each and every delayed delivery on a binding contract taken prior to August 16. You are not the only person impacted. Will they negotiate the price given their delays?
