Do I receive 2023 EV tax credit if I placed a pre-order on 07/2022 but the car will be delivered in 2023? Deposit is paid and VIN is available.

[NCperson]

@GOTK that is a 'proposed rule'.   

responses were due back to the Governemnt by June. 

Is there evidence that it was approved and implemented? 

I suspect that is why you believe this document is conflicting with the IRS FAQs and TT: it hasn't been approved. 

[GOTK]

Did you get my reply. I replied two times and it shows my reply has been posted, but then when I refresh it is not there!

[GOTK]

See this:

26 USC 30D: Clean vehicle creditText contains those laws in effect on October 12, 2023

[GOTK]

Pub. L. 117–169, title I, §13401(l), Aug. 16, 2022, 136 Stat. 1962 , provided that: "Solely for purposes of the application of section 30D of the Internal Revenue Code of 1986, in the case of a taxpayer that-
"(1) after December 31, 2021, and before the date of enactment of this Act [Aug. 16, 2022], purchased, or entered into a written binding contract to purchase, a new qualified plug-in electric drive motor vehicle (as defined in section 30D(d)(1) of the Internal Revenue Code of 1986, as in effect on the day before the date of enactment of this Act), and
"(2) placed such vehicle in service on or after the date of enactment of this Act,
such taxpayer may elect (at such time, and in such form and manner, as the Secretary of the Treasury, or the Secretary's delegate, may prescribe) to treat such vehicle as having been placed in service on the day before the date of enactment of this Act."

[GOTK]

Pub. L. 117–169, title I, §13401(l), Aug. 16, 2022, 136 Stat. 1962 , provided that: "Solely for purposes of the application of section 30D of the Internal Revenue Code of 1986, in the case of a taxpayer that-

[GOTK]

"(1) after December 31, 2021, and before the date of enactment of this Act [Aug. 16, 2022], purchased, or entered into a written binding contract to purchase, a new qualified plug-in electric drive motor vehicle (as defined in section 30D(d)(1) of the Internal Revenue Code of 1986, as in effect on the day before the date of enactment of this Act), and

[GOTK]

"(2) placed such vehicle in service on or after the date of enactment of this Act,

such taxpayer may elect (at such time, and in such form and manner, as the Secretary of the Treasury, or the Secretary's delegate, may prescribe) to treat such vehicle as having been placed in service on the day before the date of enactment of this Act."

[NCperson]

@GOTK just curious, what make / model of EV did you purchase? 

[GOTK]

Lucid

[NCperson]

@GOTK - ah, so is your issue is that under 2023 rules, the LUCID MSRP would not qualify for the EV credit, hence you want to use 2022 when that was not a factor? 

I think at this point the IRS is your best source to debate...unless some one else posts and can clarify this.  

[DoninGA]

@NCperson @GOTK @Mike9241 

Great question, if the make purchased was a General Motors, Tesla or certain Toyota EV's in 2022 then there is no credit for an EV vehicle from those manufacturers.

IRS Publication 8936 (Rev. January 2023) page page 3 for Line 4b - https://www.irs.gov/pub/irs-pdf/i8936.pdf#page=3

Line 4b
Enter 100% unless the vehicle was a vehicle with at least four wheels manufactured by Toyota, Tesla, or GM (Chevrolet Bolt EV, etc.).
Toyota. Enter the following percentage if the vehicle was manufactured by Toyota.
• 100% if you purchased it before October 1, 2022.
• 50% if you purchased it after September 30, 2022, but before 2023.
• 100% if you purchased it after 2022.
Tesla. Enter the following percentage if the vehicle was manufactured by Tesla.
• 0% if you purchased it before 2023.
• 100% if you purchased it after 2022.

GM. Enter the following percentage if the vehicle was manufactured by GM.
• 0% if you purchased it before 2023.
• 100% if you purchased it after 2022

Additionally, on the question if the vehicle was purchased or entered into a written binding contract to purchase, a qualified plug-in electric drive  motor vehicle after 2021 and before August 16, 2022.  The instructions for Form 8936 are clear on the placed in service date.

This is where I also was mistaken in thinking that the owner could only receive the credit in the tax year when the EV was actually placed in service.

The Transition rule is clear that the date of 08/15/2022 can be used as the placed in service date.

IRS Form 8936 Instructions on page 3 for Line 3 of the form - https://www.irs.gov/pub/irs-pdf/i8936.pdf#page=3

Line 3
Enter 08/15/2022 if you qualify and elect to apply the transition rule discussed below.
Transition rule. If you purchased, or entered into a written binding contract to purchase, a qualified plug-in electric drive motor vehicle after 2021 and before August 16, 2022, you may elect to treat such vehicle as having been placed in service on August 15, 2022, the day before the enactment date of the Inflation Reduction Act of 2022.

[GOTK]

Exactly! I also think it is clear with the transition rule. So, now back to my original question, I can put 2022 as the year put in service and use Turbotax for my amendment. Thanks for clarifying this.

[DoninGA]

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@GOTK wrote:

Exactly! I also think it is clear with the transition rule. So, now back to my original question, I can put 2022 as the year put in service and use Turbotax for my amendment. Thanks for clarifying this.

---

@GOTK When amending the 2022 tax return you will have to go through the EV credit section and where asked for the placed in service date - enter 08/15/2022.  Assuming you are eligible for the Transition Rule.

[Mike9241]

https://www.irs.gov/credits-deductions/credits-for-new-electric-vehicles-purchased-in-2022-or-before 

Purchase date vs. delivery date

If you entered a written binding contract to buy a vehicle after December 31, 2021, and before August 16, 2022, but took delivery on or after August 16, 2022, you may elect to claim the credit based on the prior rules.  To elect the credit under the prior rules you must elect the credit on your 2022 tax return after you take delivery of the vehicle.  Depending on the date the vehicle is delivered, you can claim the credit on your original, superseding, or amended 2022 tax return. 

https://rivian.com/support/article/How-do-I-claim-the-federal-EV-tax-credit-using-a-binding-order-ag... 

Please note two key considerations: 

1. From the Guidance: “To elect the credit under the prior rules you must elect the credit on your 2022 tax return after you take delivery of the vehicle. Depending on the date the vehicle is delivered, you can claim the credit on your original, superseding, or amended 2022 tax return.”  

2. From the Instructions: “Taxpayers who took delivery in 2023 or after must use August 15, 2022 as the date placed in service when filing out Form 8936.” 

[GOTK]

Thanks again for confirming and for the explanation. How much time do I have to amend my 2022 return and claim this credit? Is there a time limit?