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I ordered the Solterra Touring in April. My dealer just called & said it will probably be end of December. (ie. EV tax credit) I am not getting any information beyond this. My dealer thought it would arrive in port of WA.
Why do you think you can still get the credit? The credit went away on Augist 16 for cars not assembled in North America. Did you have a non refundable deposit over 5% of the car's cost? My dealer wouldn't let.me give a deposit.
 

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Why do you think you can still get the credit? The credit went away on Augist 16 for cars not assembled in North America. Did you have a non refundable deposit over 5% of the car's cost? My dealer wouldn't let.me give a deposit.
Up until Jan 1, 2023 the old credit system still applies does it not? So up until the end of this year all Solterras would qualify for the $7500 tax rebate in the US correct? In 2023 that changes. So if you get your car delivered in 2022 you should be fine.
correct me if I’m wrong. I’m Canadian and doesn’t follow the US EV incentives as closely.
 

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Up until Jan 1, 2023 the old credit system still applies does it not? So up until the end of this year all Solterras would qualify for the $7500 tax rebate in the US correct? In 2023 that changes. So if you get your car delivered in 2022 you should be fine.
correct me if I’m wrong. I’m Canadian and doesn’t follow the US EV incentives as closely.
Unless something has changed very recently, no tax rebates are available for 70% of the EVs that were available in the US market on 15-Aug.
 

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Up until Jan 1, 2023 the old credit system still applies does it not? So up until the end of this year all Solterras would qualify for the $7500 tax rebate in the US correct? In 2023 that changes. So if you get your car delivered in 2022 you should be fine.
correct me if I’m wrong. I’m Canadian and doesn’t follow the US EV incentives as closely.
No problem, you're excused for not being fluent in US EV tax credits. Even most US car dealers selling EVs aren't - and they clearly should be.

Once the president signed the IRA, on August 16, the "built in North America" requirement kicked in immediately. The other requirements don't become effective until 1/1/2023 or 1/1/2024 (depending on requirement). The only way to claim the credit for a non-NA built EV delivered after August 15 would be if the buyer had already signed a binding purchase agreement and paid a non-refundable (subject to state laws) 5% deposit.

So yeah, just taking delivery of a Japanese, Korean, or European built EV by December 31, 2022 means nothing, without that binding agreement and 5% non refundable deposit.
 

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Up until Jan 1, 2023 the old credit system still applies does it not? So up until the end of this year all Solterras would qualify for the $7500 tax rebate in the US correct? In 2023 that changes. So if you get your car delivered in 2022 you should be fine.
correct me if I’m wrong. I’m Canadian and doesn’t follow the US EV incentives as closely.
For U.S. buyers, there will be no longer the $7,500 rebate available for the Solterra no matter when you are able to finally take delivery of the car. Doesn’t matter if you signed any paperwork before August 16th with your dealer either.
Not sure about the rules in Canada.
 

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For U.S. buyers, there will be no longer the $7,500 rebate available for the Solterra no matter when you are able to finally take delivery of the car. Doesn’t matter if you signed any paperwork before August 16th with your dealer either.
Not sure about the rules in Canada.
That's not correct. Written binding contract before 8/16 absolutely matters.
 

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VIN is irrelevant. 5% non-refundable deposit is one example that makes it binding in the eyes of the IRS.
Agreed. When you contract to have a house built or buy a major appliance, they don't yet exist but the contract can still be binding. The car doesn't have to yet exist or even have a VIN, so long as its specifications are clearly defined.
 

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VIN is irrelevant. 5% non-refundable deposit is one example that makes it binding in the eyes of the IRS.
Well my good buddy who’s a partner in his CPA firm said a VIN is always attached on the return so I figured the IRS would want that as well.
The 5% non-refundable deposit is the guideline that the IRS will use and I don’t think many people have gotten one on their Subaru order.
I can tell you that when I reserved my Fisker Ultra, I only had to put down a $250 refundable deposit and even though Fisker then turned our reservations into non-refundable in the hopes of securing our $7,500 rebate, I’m not counting on it (as my CPA buddy says, it would be a $7,500 roll of the dice for me and one he would not sign off on). However, for those that reserved a Fisker One, they had to put down a $5,000 non-refundable deposit back in July so they for sure will qualify when they get their cars in late 2022 and early 2023.
 

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Well my good buddy who’s a partner in his CPA firm said a VIN is always attached on the return so I figured the IRS would want that as well.
The 5% non-refundable deposit is the guideline that the IRS will use and I don’t think many people have gotten one on their Subaru order.
I can tell you that when I reserved my Fisker Ultra, I only had to put down a $250 refundable deposit and even though Fisker then turned our reservations into non-refundable in the hopes of securing our $7,500 rebate, I’m not counting on it (as my CPA buddy says, it would be a $7,500 roll of the dice for me and one he would not sign off on). However, for those that reserved a Fisker One, they had to put down a $5,000 non-refundable deposit back in July so they for sure will qualify when they get their cars in late 2022 and early 2023.
By the time you file for the credit you will already have the car and, therefore, the VIN. You just wouldn't have had it when you entered into the binding purchase agreement and paid the non-refundable 5% deposit.
 

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Those of us who converted to factory orders at a dealership with a full OTD price sheet could argue that’s a binding agreement in some states. I still think IRS may reject those - especially if we/you only put down a $250 refundable deposit with no penalties for cancellation. I could argue since I put an additional $1K deposit (my dealer required this - they don’t like folks creating multiple orders then abandoning them) that is a sign of good faith I’d complete the purchase. Sadly the IRA is a mess and we are in the hands of the IRS to determine whether they will accept our tax return or force us to sue for it.

A person on a waitlist who only submitted a $250 online deposit to Subaru of America (who can’t even legally sell you the car in some states due to direct sales bans)… that’s not a binding contract at all.
 

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Well my good buddy who’s a partner in his CPA firm said a VIN is always attached on the return so I figured the IRS would want that as well.
The 5% non-refundable deposit is the guideline that the IRS will use and I don’t think many people have gotten one on their Subaru order.
Dealer/manufacturer report the VIN at the time of the sale. You enter the VIN on your return with the credit, Form 8936. 5% non-refundable deposit will essentially guarantee that you qualify. Any other situation, it's up to you to decide if you want to try to claim the credit and then up to the IRS to decide if they'll allow it.

You statement "I don’t think many people have gotten one on their Subaru order" is true, but that is very different from your original statement "Doesn’t matter if you signed any paperwork before August 16th".

Current IRS guidance is at the link below. They could have made it very simple and clear if a 5% non-refundable deposit was the only way to have a "written binding contract".

 

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With all due respect to those who have invested their money - listen to this.

The EV car market is an unnecessarily hyped one. Tesla lit the fire and it's spreading like wildfire. It's a completely new technology and all the EV vehicles are buggy and still a long way to go for attaining decent quality. Tesla owners know exactly what I mean. Saying that, the first myth that EVs are green is [email protected] It takes up the same or more resources to put one on the road as an ICE vehicle. Secondly the myth is that they do not contribute to the environmental mess we've created. No no... They contribute equally by adding battery waste and chemicals into the environment. Lastly the elephant in the room - EVs can replace ICE cars - which is hilarious. I can take my truck for a long haul with a meager 5 min pitstop to refuel. Now compare that with an hour every 300 miles to recharge? It's extremely inconvenient and doesn't justify the hype and the price tag.

So stop fantasizing EVs. It's a scam. The EV market has a long way to go to become mature, affordable and equivalent to an ICE vehicle. Long long way folks!!

BTW my dealership here in Vancouver is probably the most honest one I guess. They clearly told us that the Solterra would be available somewhere in 2024-2025. The prices are going to be completely different when they arrive and mind you, the car's also going to be very different in 2 years. As of now its just a fantasy!!
 

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Those of us who converted to factory orders at a dealership with a full OTD price sheet could argue that’s a binding agreement in some states. I still think IRS may reject those - especially if we/you only put down a $250 refundable deposit with no penalties for cancellation. I could argue since I put an additional $1K deposit (my dealer required this - they don’t like folks creating multiple orders then abandoning them) that is a sign of good faith I’d complete the purchase. Sadly the IRA is a mess and we are in the hands of the IRS to determine whether they will accept our tax return or force us to sue for it.

A person on a waitlist who only submitted a $250 online deposit to Subaru of America (who can’t even legally sell you the car in some states due to direct sales bans)… that’s not a binding contract at all.
Yes, they are a mess and have made this even messier. I heard the IRA provided a huge amount of money to the IRS to beef up their staff. More audits to come?
So yes, it will be a gamble if one tries for the $7,500. My take on it is you like the car enough to pay M.S.R.P., go for it and buy the car and roll the dice to see if you get the $7,500 or not. Worse case you don’t get it (and hopefully don’t get hit with any penalties or interest). Best case you get it. To me, the car isn’t worth M.S.R.P. and it’s not worth the gamble to get the $7,500 back or not.
 

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You statement "I don’t think many people have gotten one on their Subaru order" is true, but that is very different from your original statement "Doesn’t matter if you signed any paperwork before August 16th".
You are correct, my mistake on my wording. I’d be interested if anybody did put down 5% or more and had it as non-refundable. Gutsy move if someone did on a car mostly unseen or test driven by most of us. I know when Fisker asked for the $5K non-refundable deposit, many reservation holders balked at it.
 

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More audits to come?
I think most people miss the point of how gutted the IRS as an agency is/was, and practically everything processed was just rubber-stamped (your parents know what it means) regardless of how fraudulent it was. The bulk of their new funding (over the course of 10 years) is to account for normal attrition (retirements) of 50,000 - 80,000 of staff. The "more audits" part is so they can start scrutinizing businesses that claim huge tax breaks in complex returns that have very little to do with individual tax returns, especially if you make less than $400,000 annually.

Would you rather have your individual tax rates go up to cover government spending (arguing about the spending is a separate matter for discussion on a different site) or have businesses pay their fair share of the $600 billion in fraudulent tax break claims?
 

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With all due respect to those who have invested their money - listen to this.

The EV car market is an unnecessarily hyped one. Tesla lit the fire and it's spreading like wildfire. It's a completely new technology and all the EV vehicles are buggy and still a long way to go for attaining decent quality. Tesla owners know exactly what I mean. Saying that, the first myth that EVs are green is [email protected] It takes up the same or more resources to put one on the road as an ICE vehicle. Secondly the myth is that they do not contribute to the environmental mess we've created. No no... They contribute equally by adding battery waste and chemicals into the environment. Lastly the elephant in the room - EVs can replace ICE cars - which is hilarious. I can take my truck for a long haul with a meager 5 min pitstop to refuel. Now compare that with an hour every 300 miles to recharge? It's extremely inconvenient and doesn't justify the hype and the price tag.

So stop fantasizing EVs. It's a scam. The EV market has a long way to go to become mature, affordable and equivalent to an ICE vehicle. Long long way folks!!

BTW my dealership here in Vancouver is probably the most honest one I guess. They clearly told us that the Solterra would be available somewhere in 2024-2025. The prices are going to be completely different when they arrive and mind you, the car's also going to be very different in 2 years. As of now its just a fantasy!!
Are you saying that the Solterra is going to get a design change in two years before the first ones even arrive?
 
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