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All this speculation about the IRA and our potential $7500 tax credit is interesting to read but it's only speculation - we'll just have to wait and see how Treasury and IRS implement the rules. What we can do, as I have done, is write your U. S. Senators/Congresspeople and request their help in creating rules that benefit us. Since none of them voted for it you may not get as good a response from the Republicans but this is now the law and our elected representatives do want to solve problems for their constituents. The more of us they hear from the greater the pressure to act!
Have written mine as well as using my inlaw's address (WV) to write Joe Manchin (The Architect of this cluster _ _ _ _ ). Don't expect anything but a form letter in return through. I would think that the California. New York, insert heavy EV state here, would be the best hopes to help get some sort of phase in. Just hoping on my part though.
 

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Letter to my Senators:

Dear Senator,

I’m writing to make you intimately aware of a situation that I and thousands of other Americans are suddenly facing as a result of the Inflation Reduction Act (IRA) as it relates to electric vehicle purchases.

To convey this issue, I will use the specific example of the Subaru Solterra, which I and approximately 6,000 other US customers were in the process of purchasing at the time the IRA was signed into law.

US customers such as myself had the opportunity to reserve an allotted 6,000 Solterras during a short window in February 2022. Subaru then released pricing and began having US dealers contact reservation customers in April 2022 so we could order the specific vehicles we wanted (color, trim level, etc.). Customers were then provided approximate delivery dates in August/September 2022.

As you can see, these thousands of customers and I have six months invested in this process. While I can not speak for everyone, I do know that I and many others were depending on the previously existing $7,500 tax credit, which the Subaru Solterra qualified for, to be a component of this purchase. It was undoubtedly a factor in the decision for many of us to purchase this specific vehicle.

So here we all are, after many months of working and planning to purchase the Subaru Solterra and the IRA is passed, IMMEDIATELY DISQUALIFYING the Subaru Solterra for a tax credit due to its assembly origin. Yes, there is a Transition Rule that MIGHT allow buyers such as us to qualify for the previous tax credit, but the language regarding “binding agreements” is ambiguous and confusing.

In a nutshell, me and thousands of other people are in the middle of a purchase we are no longer sure qualifies for a tax credit. Furthermore, some of us may be subject to losing deposit money if we don’t proceed with our purchases.

Senator, please do everything in your power to see to it that I and the thousands of other US buyers in my position can EASILY qualify for the previous tax credit. We should not be faced with such uncertainty simply because Congress passed a bill while we were in the middle of a vehicle purchase. Especially when that vehicle purchase helps reduce costs to the environment and negative health consequences to other Americans.

Please keep in mind, this is the tale of just one model of EV. There are thousands of additional buyers that were in the process of purchasing other makes and models who now find themselves in the same confusing and stressful situation.

Thank you in advance for your assistance with this matter.
Sincerely,
 

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In the near future, the IRS will take comments from the public on establishing guidelines on this new law. Not sure if the public can get them to delay or grant a waiver but worth a shot. I'll post the comment section once it's available.
 

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Letter to my Senators:

Dear Senator,
The NYTimes recently posted an article that said that the Democrats (yes this is politics) snuck something important into the IRA. Namely, as a result of legislative action in the House and Senate, CO2 is now considered pollution. Which means that the Supreme Court will find it harder to reject policies created by the EPA to limit pollution emitted by coal plants and other fossil fuels. (One commenter suggested that because we all emit CO2, and because businesses are people, too, that the Supreme Court might consider the emission of CO2 to be a form of free speech, and thus it can't be limited.)

Don't you think that getting CO2 legislated by Congress is worth the loss of the $7500 tax rebate?
 

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As in just about all legislation, there’s some good and some not so good… some winners and some losers are the result. It’s always been this way.

While none of us is happy with this particular item, and we would all agree that the door could have been closed more gently instead of being slammed shut, it is what it is (for the most part, as the IRS still has some latitude in the rule-writing phase). Hopefully, we will get a loose interpretation of the transition rules and those of us with reservations pre-enactment will be cut some slack.

Thats about the best outcome we can hope for now.
 

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The NYTimes recently posted an article that said that the Democrats (yes this is politics) snuck something important into the IRA. Namely, as a result of legislative action in the House and Senate, CO2 is now considered pollution. Which means that the Supreme Court will find it harder to reject policies created by the EPA to limit pollution emitted by coal plants and other fossil fuels. (One commenter suggested that because we all emit CO2, and because businesses are people, too, that the Supreme Court might consider the emission of CO2 to be a form of free speech, and thus it can't be limited.)

Don't you think that getting CO2 legislated by Congress is worth the loss of the $7500 tax rebate?
Funny how compounds essential to life on earth are deemed pollution for political purposes.
 

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I completely agree. Seems that it would have been reasonable to have a 12-18 month window. OTOH, I get why that was omitted. Look at how many times dates have been pushed back again and again regarding implementation of legislation… digital television transmission and Real ID are a couple of great examples. If the date for implementation is immediate, it’s more difficult to lobby for extensions. While I don’t like losing the rebate $$$, I do get the reason why its that way. My last hope is for a more liberal translation of IRS rules, but the odds of getting that might be long…

The problem is these days that non-politicians are writing the texts of the bills at both state and federal levels. Much of the legislation passed is authored by an overwhelming amount of special interests groups, often without regard to the impact it may incur on anyone with an opposing/conflicting interest.
 

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I completely agree. Seems that it would have been reasonable to have a 12-18 month window. OTOH, I get why that was omitted. Look at how many times dates have been pushed back again and again regarding implementation of legislation… digital television transmission and Real ID are a couple of great examples. If the date for implementation is immediate, it’s more difficult to lobby for extensions. While I don’t like losing the rebate $$$, I do get the reason why its that way. My last hope is for a more liberal translation of IRS rules, but the odds of getting that might be long…

The problem is these days that non-politicians are writing the texts of the bills at both state and federal levels. Much of the legislation passed is authored by an overwhelming amount of special interests groups, often without regard to the impact it may incur on anyone with an opposing/conflicting interest.
I think all customers that had reservations or orders in place (refundable or not) should be grandfathered into the old rules. Manufacturers should be given a grace period through the end of 2022 to submit plans to relocate their manufacturing of EVs to North America, and give them two more years for those cars to start rolling off the new assembly lines. That would be more encouraging than just immediately telling everyone to pack sand on August 16.
 

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Interesting… I just viewed the Solterra section on the Subaru website. At the bottom of the page, under the FAQ section, there’s this…

”A federal tax credit incentive of up to $7,500 is available. Additional incentives, tax credits, and discounts may be available based on your location and employer. Make sure to look into your state’s information about electric vehicles.”

It doesn’t seem that the website has been updated to reflect the new legislation yet.
 

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Discussion Starter · #279 · (Edited)
Not sure if this list from Green Car Reports was already posted here.

Electric vehicles that currently qualify but are too expensive to meet the new price caps:
Audi E-Tron GT
BMW iX
Genesis G80 Electrified
GMC Hummer EV
Lucid Air
Mercedes-Benz EQE
Mercedes-Benz EQS
Porsche Taycan
Rivian R1S
Rivian R1T

Electric vehicles that would continue to qualify by price but aren’t built in North America:
Audi E-Tron SUV and Sportback
Audi Q4 SUV and Sportback
BMW i4
Fisker Ocean
Genesis GV60
Hyundai Kona Electric
Hyundai Ioniq 5
Jaguar I-Pace
Kia EV6
Kia Niro EV
Mazda MX-30
Mini Cooper SE
Polestar 2
Subaru Solterra
Toyota BZ4X

Volvo C40 Recharge
Volvo XC40 Recharge

EVs that will likely qualify in 2023 on price and assembly point in 2023 (before tighter supply-chain rules):
Chevrolet Bolt EV (with the lifting of the 200,000-vehicle cap)
Ford Mustang Mach-E
Ford E-Transit
Ford F-150 Lightning
Nissan Leaf
Volkswagen ID.4
Tesla Model 3 (with the lifting of the 200,000-vehicle cap)
Tesla Model Y (with the lifting of the 200,000-vehicle cap)

Plug-in hybrids will continue to qualify as clean vehicles eligible for the credit based on their battery size. But these simply don’t meet the price cut.
Audi A7 TFSI e Quattro plug-in hybrid
Bentley Bentayga Hybrid
BMW 530e xDrive
BMW 745e xDrive
Land Rover Range Rover Plug-In Hybrid
Land Rover Range Rover Sport Plug-in Hybrid
McLaren Artura
Porsche Cayenne E-Hybrid
Porsche Panamera 4/S E-Hybrid

These plug-in hybrids currently qualify on price but don’t have final assembly in the U.S.
Audi Q5 TFSI e Quattro plug-in hybrid
BMW X5 xDrive45e
BMW 330e and 330e xDrive
Hyundai Tucson Plug-In Hybrid
Hyundai Santa Fe Plug-In Hybrid
Kia Niro Plug-In Hybrid
Kia Sorento Plug-In Hybrid
Lexus NX 450h+
Mini Cooper SE Countryman ALL4
Mitsubishi Outlander Plug-In Hybrid
Toyota Prius Prime
Toyota RAV4 Prime
Volvo S60 Recharge Extended Range
Volvo V60 Recharge Extended Range
Volvo XC60 Recharge Extended Range
Volvo S90 Recharge Extended Range
Volvo XC90 Recharge Extended Range

Plug-in hybrids that will likely qualify in 2023 (before tighter supply-chain rules):
Chrysler Pacifica Hybrid
Ford Escape Plug-In Hybrid
Jeep Wrangler 4xe
Jeep Grand Cherokee 4xe
Lincoln Aviator Grand Touring
Lincoln Corsair Grand Touring
 

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In the near future, the IRS will take comments from the public on establishing guidelines on this new law. Not sure if the public can get them to delay or grant a waiver but worth a shot. I'll post the comment section once it's available.
Many of the rules have been announced at
 
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