Electric Vehicle Tax Credit

[Craw1729]

I placed a deposit on an Electric Vehicle prior to the signing of the Reduction in Inflation Act. This vehicle is now not eligible for the Federal Tax Credit. It is to be delivered to me at the beginning of November, due to supply chain issues. Can I still claim the $7500 Federal Tax Credit?

[Critter-3]

Inflation Reduction Act of 2022 (IRA 2022) signed into law on 8/16/2022. Hence terms used here are “Pre-IRA 2022” and “Post-IRA 2022.”

If you purchase and take possession of a qualifying EV after 8/16/2022 and before 1/1/2023, and you satisfy the final North American assembly requirement (VW iD4 manufactured in Chattanooga TN), the "Pre-IRA 2022" rules apply. Based on below link, the credit should be $7,500 subject to further IRS update.

Index for Manufacturers published by the IRS

https://www.irs.gov/businesses/irc-30d-new-qualified-plug-in-electric-drive-motor-vehicle-credit

You can use the applicable EV credit on your tax year 2022 Federal tax return to offset the tax liability. However, the unused tax credits does not carryover or carry forward to 2023 if you do not use it in the year you purchased the vehicle (2022).

[NCperson]

shoudn't that state POST IRA 2022 rules apply????

If you purchase and take possession of a qualifying EV after 8/16/2022 and before 1/1/2023, and you satisfy the final North American assembly requirement (VW iD4 manufactured in Chattanooga TN), the "Pre-IRA 2022" rules apply.

if the deposit was placed prior to Aug 16 and was part of a BINDING CONTRACT, then the PRE-IRA 2022 rules apply.  if the depoist was placed prior to August 16 and it was NOT a BINDING CONTRACT, then the POST IRA 2022 rules apply