[Mkg2]

My dealer just called and left me a message, said “your Solterra will not qualify for the $7500 tax credit, do you still want it ? “ I was the first day back in April to places the deposit of $250 to secure the solterra, anyone’s know the solterra still qualify for the tax credit ? Maybe the dealer wants me to cancel it so they can sell it to someone who welling to pay more money ?
Thank you!!

 

[JayEM]

My dealer just called and left me a message, said “your Solterra will not qualify for the $7500 tax credit, do you still want it ? “ I was the first day back in April to places the deposit of $250 to secure the solterra, anyone’s know the solterra still qualify for the tax credit ? Maybe the dealer wants me to cancel it so they can sell it to someone who welling to pay more money ?
Thank you!!

They're only NOW realizing the credit went away on 8/16/2022?

 

[O. horridus]

The credit went away for the Solterra on 16 August because it is not assembled in the US. The full $7500 credit is still available for EVs assembled in the US and purchased in 2022. For EVs purchased in 2023, there are additional requirements, such as income limits, battery sourcing, etc. that also will restrict who can get the full credit, but we don't know all the details of that yet (and won't know until the IRS releases the new regulations early next year).

So bottom line, no credit at all for any Solterra, because none were sold before 16 August and because none meet the "assembled in the US" requirement of post-16 August sales.

 

[Mkg2]

Thanks for the reply, so they’re not counting when we’re put deposit back in April ? Is that considered sold ? Thanks

 

[JayEM]

Thanks for the reply, so they’re not counting when we’re put deposit back in April ? Is that considered sold ? Thanks

Only if it was combined with a "written binding contract" to purchase the Solterra, and the deposit is non-refundable (as defined/allowed by your state law). Any non-refundable deposit of less than about 5% is likely to be viewed with skepticism by the IRS.

The initial reservation fee you paid back in February is fully refundable and not a binding agreement to buy the car (you can test drive your "ordered car" when it arrives and walk away without buying it).

 

[Mkg2]

That so sad, I have to go back with Tesla again, are you guys still purchasing with out the tax credit ? Thanks

 

[O. horridus]

Only if it was combined with a "written binding contract" to purchase the Solterra, and the deposit is non-refundable (as defined/allowed by your state law).

Correct. Many people, including me, contacted our dealers and SoA to try to get Subaru to write up some sort of binding contract we could sign to secure the tax credit, but they declined to take action. Other manufacturers DID provide their customers with binding agreements that could be signed early.

While the agreements provided by other manufacturers may or may not hold up, depending on how the IRS writes the tax regulations, at least those other manufactures TRIED to do something in the limited time they had (~1 week). Subaru didn't even try as far as I can tell.

 

[JayEM]

Correct. Many people, including me, contacted our dealers and SoA to try to get Subaru to write up some sort of binding contract we could sign to secure the tax credit, but they declined to take action. Other manufacturers DID provide their customers with binding agreements that could be signed early.

While the agreements provided by other manufacturers may or may not hold up, depending on how the IRS writes the tax regulations, at least those other manufactures TRIED to do something in the limited time they had (~1 week). Subaru didn't even try as far as I can tell.

As I recall, Subaru of America did send out an email about binding purchase agreements, but not until about August 15 or 16. Before that, I too tried to get my dealership to budge, but they refused.

 

[O. horridus]

That so sad, I have to go back with Tesla again, are you guys still purchasing with out the tax credit ?

The Solterra is immediately $7,500 more expensive than I planned on, but other options out there usually have additional dealer markup of at least that much, so I don't know. I feel they should make an effort and lower the price a bit so they don't lose sales, but then again I don't think they will have a problem selling the limited number they are getting, at least here in the Subaru-crazy Northwest.

 

[JayEM]

The Solterra is immediately $7,500 more expensive than I planned on, but other options out there usually have additional dealer markup of at least that much, so I don't know. I feel they should make an effort and lower the price a bit so they don't lose sales, but then again I don't think they will have a problem selling the limited number they are getting, at least here in the Subaru-crazy Northwest.

Almost nothing qualifies for the full $7,500 for the period 8/16 through 12/31/2022. On top of that, many competing EVs are going for $3,500 to $10k over MSRP (and/or have a long wait time).

So, not what any of us were contemplating back in February - April, but "it is what it is".... Nothing else that I was interested in costs any less than the Solterra, even after the loss of the FTC. With some luck, mine will be here next Month. At least I'll get the (30%) FTC on the ChargePoint Home Flex I just ordered!

 

[O. horridus]

As I recall, Subaru of America did send out an email about binding purchase agreements, but not until about August 15 or 16. Before that, I too tried to get my dealership to budge, but they refused.

Yes, I got the email from SoA on 15 August at 3pm. It said "Immediately upon the President’s enactment of this legislation (expected soon), EVs assembled outside of North America, including the Solterra, will no longer qualify for the tax credit." but it didn't give any options or suggestions other than "consult with your tax advisor".

Notably, the bill was signed on 16 August (as expected), and the binding purchase agreement had to be signed "before" the bill was signed, so the Subaru email essentially gave me two business hours to consult my tax adviser and arrange a legally binding agreement with my dealership. Since I had already been in touch with my dealership, and since they were waiting for Subaru to tell them what to do, this email was worthless.

 

[O. horridus]

Almost nothing qualifies for the full $7,500 for the period 8/16 through 12/31/2022.

My new Rivian does

 

[VICanuck]

Another one bites the dust.....

 

[Dave]

At least I'll get the (30%) FTC on the ChargePoint Home Flex I just ordered!

30% of installation too I believe.

 

[JayEM]

30% of installation too I believe.

In my case, I already have the NEMA 14-50, I just need to mount the device and plug it in.

 

[JayEM]

My new Rivian does

Up through 12/31/2022, after which date the price caps kick in.

Also Lucids (with the same ending date), and Nissan Leafs, Mustang Mach-Es and Chattanooga-built ID4s. Lordstown trucks, F-150 Lightnings... Not nothing, but not many of the most popular models.

 

[CTValleySubaruGuy]

I'll still be getting my Solterra, tax credit or not. The tax credit just sweetened the deal.

I did have an order form that said in large, red type at the bottom that the order was binding after being signed by both the dealer and the buyer. I would have used that if I were getting a vehicle in December, but my delivery has been rolled to March with most of the others.

There is some high-level discussion about this. Since Germany, Japan, and South Korea are some of our best trading partners, and their delegations have complained loudly about all their vehicles suddenly not qualifying, it's not off the radar. Senator Warnock introduced a bill, S.5020, to delay the implementation of those clauses of the IRA that eliminated the tax credits for two years. As of Friday, the Senate Finance Committee had not taken any action on it; maybe now that Senator Warnock has won his runoff election there will, be some push to get it moving. I have written both of my senators asking them to support it.

 

[JayEM]

I'll still be getting my Solterra, tax credit or not. The tax credit just sweetened the deal.

I did have an order form that said in large, red type at the bottom that the order was binding after being signed by both the dealer and the buyer. I would have used that if I were getting a vehicle in December, but my delivery has been rolled to March with most of the others.

There was some ambiguity (understatement) in the bill language as to whether the vehicle would have to be delivered by 12/31/2022 (if a binding contract in place), but if delivered after 12/31/2022 the credit would not be claimable until filing 2023 taxes.

 

[Tucson John]

I'll still be getting my Solterra, tax credit or not. The tax credit just sweetened the deal.

I did have an order form that said in large, red type at the bottom that the order was binding after being signed by both the dealer and the buyer. I would have used that if I were getting a vehicle in December, but my delivery has been rolled to March with most of the others.

There is some high-level discussion about this. Since Germany, Japan, and South Korea are some of our best trading partners, and their delegations have complained loudly about all their vehicles suddenly not qualifying, it's not off the radar. Senator Warnock introduced a bill, S.5020, to delay the implementation of those clauses of the IRA that eliminated the tax credits for two years. As of Friday, the Senate Finance Committee had not taken any action on it; maybe now that Senator Warnock has won his runoff election there will, be some push to get it moving. I have written both of my senators asking them to support it.

Thank you for taking positive action on the Tax Credit. You provided yet another way that the USA Forum people can help each other.

Quite frankly, I am very tired of hearing from all the people who chose to share they are not getting Solterras because they will not get the Tax Credit. Anyway from your positive actions, I too will be writing to Sen Kelly and Sen Sinema, both from Arizona.

Great idea!

 

[CTValleySubaruGuy]

Yes, you're right. I apologize for the unclear statement. I was referring to claiming a 2022 tax credit only, and there's no ambiguity there: the tax credit would only apply to the tax year in which you take delivery.