I purchased an electric vehicle last week. I did sign a purchase agreement before the IRA act was signed into law, but I did not take delivery until September.
The MSRP of the vehicle is just over the proposed $80,000 limit that was being discussed in the IRA framework.
Does this MSRP limit apply for vehicles that were delivered in 2022? If so, does the signing of the purchase agreement before enacting the IRA act help at all?
Hi a76marine1, thanks for the event questions.
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.”
You mentioned that you signed a purchase agreement before 8/16/2022 and took delivery during September 2022.
If you have a Written Binding Contract, i.e. you paid a nonrefundable deposit/downpayment of 5% or more, your vehicle does not need to be assembled in North America. If not, your vehicle needs to be assembled in North America.
Depending on the above, if qualify, your credit follows the "Pre-IRA 2022" rules, which has no MSRP vehicle price limit. The MSRP limit does not apply for vehicles that were delivered in 2022.
Please look at page 2 of below link, under the column of "Pre-IRA 2022" under the label of "Plug-in EV credit": the highlights are -
*Max amount could be $7,500 non-refundable credit;
*Phaseout after 200,000 plug-in EVs manufactured and sole
Clean Vehicle Tax Credits in the Inflation Reduction Act of 2022
https://crsreports.congress.gov/product/pdf/IN/IN11996
Please see below for Index for Manufacturers published by the IRS
https://www.irs.gov/businesses/irc-30d-new-qualified-plug-in-electric-drive-motor-vehicle-credit
Hope the above helps.
Hi a76marine1, thanks for the event questions.
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.”
You mentioned that you signed a purchase agreement before 8/16/2022 and took delivery during September 2022.
If you have a Written Binding Contract, i.e. you paid a nonrefundable deposit/downpayment of 5% or more, your vehicle does not need to be assembled in North America. If not, your vehicle needs to be assembled in North America.
Depending on the above, if qualify, your credit follows the "Pre-IRA 2022" rules, which has no MSRP vehicle price limit. The MSRP limit does not apply for vehicles that were delivered in 2022.
Please look at page 2 of below link, under the column of "Pre-IRA 2022" under the label of "Plug-in EV credit": the highlights are -
*Max amount could be $7,500 non-refundable credit;
*Phaseout after 200,000 plug-in EVs manufactured and sole
Clean Vehicle Tax Credits in the Inflation Reduction Act of 2022
https://crsreports.congress.gov/product/pdf/IN/IN11996
Please see below for Index for Manufacturers published by the IRS
https://www.irs.gov/businesses/irc-30d-new-qualified-plug-in-electric-drive-motor-vehicle-credit
Hope the above helps.
Thank you, the vehicle was made and assembled in the US. I appreciate your time!