Everything You Need To Know About The EV Tax Credit Changes In 2022, 2023, and 2024!

[@EVBuyersGuide]

One note: It appears that starting when the content and minerals requirement goes into effect that it will be split into two parts. If the battery content meets muster you get $3,750 and another $3,750 for the minerals but the rules around this have yet to be written. How Vinfast will be treated we don't know. They plan on building EVs in the USA but you'll have to lease the battery and based on how the law seems to be written that would mean that the vehicle, even when purchased, would not get the tax credt unless you were also allowed to buy the battery,

[@StevennnLAX]

It also said that a binding contract must be made after 8/16/2022 to qualify for the new tax credit, so I am wondering the Tesla order agreement will be considered a binding contract or not?

[@EVBuyersGuide]

@@StevennnLAX From the guidance provided by the IRS it would also require a non refundable deposit and the IRS prefers that that deposit is 5% or more of the purchase price,.

[@nc3826]

@@EVBuyersGuide thanks for adding that but you could have just pinned my comment ;) correction. the IRS states starting in 2023 there will be two 2 tax credits for new clean vehicles of $3,750 , not just one of $7,500, based on battery criteria....

[@JohnnyCarly]

@@EVBuyersGuide A CNN article reads that you had to take delivery before Jan 1 to qualify? If you have a binding contract, does anyone know if there is a rule that you actually need to take delivery before Jan 1?

[@StevennnLAX]

@@EVBuyersGuide 5% deposit? I ordered the Tesla model Y, and they only charge $200 to order.

[@user-js3ee5qv6g]

THANK YOU for such a clear concise explanation of how we get the credit. I have been asking my accountant, car dealers, watching you tube just to find out if I will be be refunded only the tax credit amount I would owe at yr end or is it based on ALL the taxes I already paid through the year. You are the ONLY ONE who explained everything we need to know👍🏽

[@YaroslavTerletskyy]

I recently bought a used salvaged 2021 Tesla for less than $25k. I hope to benefit from the used EV tax credit. However the car dealer doesn’t know much about it. What is required on dealer’s part to do for my purchase to qualify? Any IRS forms to fill out right after the sale? A copy of the dealer’s license and their tax ID? A written binding contract or is a bill of sale enough? Please help to clarify this situation. Thank you!

[@MaskedMammal]

I didn't realize 2024 would open the door to the credits applying directly to the car sales. That's a pretty big deal, since (as you explained) you have to have at least a $7500 federal tax burden in the same year you bought the car otherwise, to get the full credit, and even then, that's if you don't qualify for anything else that year. Weirdly, the incentive working only as a tax credit makes it less useful to the people who probably need it most to justify buying an EV instead of an ICE.

[@MJ-zo5gb]

I’ve been trying to get some clarity on this. Even though it’s a point of sale, it may be tied to your taxes. Meaning you get 7500 off at point of sale and the dealer gets 7500 from the government but at tax time if you don’t have the 7500 in liability, do you have to make pay up then? I’m not sure this has been clarified yet.

[@MaskedMammal]

@@MJ-zo5gb The way I understood it was, you're just passing the tax credit on to the dealer you're buying the car from. Their tax burden is likely to be high enough they can take a lot of these before needing to cut off the discount. Presumably the only thing that reflects on your own taxes is the inability to pick up any other EV purchase tax credit for yourself that year - you're passing that on to another entity. I'm not sure how else it could work, TBH. If my tax burden is only $2000, that's how much the credit might get me at the end of the year... but my taxes won't be completed until a couple months into next year so it wouldn't be possible to determine my tax liability for the coming year at point of sale. Maybe they could try to calculate what it's expected to be, but that seems like a lot of work for something that ultimately would be easier to just claim yourself. There may be some relation to how the tax credit affects a lease. I'm not one to lease a car so I haven't looked into it but from what I've heard it sounds similar in that the credit doesn't go to your own taxes but instead gets passed to the dealer who can then put a discount on the lease payments.

[@MJ-zo5gb]

@@MaskedMammal I understand what you’re saying. Right now the rebate is limited to people that have over 7500 tax liability and people under the maximum income requirements. So in 2024 people with no tax liability can get the full 7500 and people who make more than the current limits on income can also get it? No restrictions? I wonder if this is how it will work out. Government would be basically giving poorer people who pay no federal taxes $7500 and also giving $7500 to people that are rich. Honestly, the government probably doesn’t even know what it’s going to do yet.

[@palakaman]

It's pretty crazy. We got our Santa Fe PHEV last month. Had we waited we couldn't have gotten the rebate. They're going to have a tough time moving the PHEVs now. I wonder if the market adjustments they're asking for them (some were as high as $15k over msrp) are going to go away and you can haggle more when looking to buy one.

[@FuncleChuck]

The demand will be there but they will need to drop some of the added-Dealer-theft to keep the days on lot the same

[@nc3826]

going to great times for PHEVs built in North America since they will get the full tax credit

[@kodoq88]

I would say or do (if I'm the dealer) they will see how the demand going to be like. It looks like they will need to make some adjustments on it. But again, there are people willing to pay unneeded extras just because they want the vehicle so bad.

[@jeffbrooker5183]

Thank you Alex, that's the best break down I've heard to date with how the new law works. I'm glad to hear that other American auto manufacturers will be eligible again.

[@R56Cooper]

Thank you for keeping up up to date regarding this Alex! Sharing with others now--

[@natenoneya6773]

This was very precise and extremely useful. It will make all the difference in my choice of EV's. Hopefully you will maintain a list of qualified EV's and their battery qualifying status. I am not pleased that the tax credit is not able to be carried forward at least a few years.

[@preissisrightpickleball8142]

Excellent video, really helped me understand the nuance of the credit! Thank you!

[@jimmyf.x.9526]

You just answered so many of my questions I have been searching for online, especially about leasing. Thanks!

[@DharmeshKumar]

Your slide on used EVs is incorrect. Also your mentioned that used EVs credit starts 2024, not 2023??

[@josephpryor7804]

Thanks Alex, great video! You mention that an EV binding contract signed between August 16 and December 31, 2022 will qualify for the tax credit based on the old requirements, even if delivered in 2023, as long as final assembly was in North America. Can you let us know where you obtained this info? I can't seem to find it anywhere.

[@uwmalcolm491]

I would like to see this as well. I haven't found anything online. I'm also wondering if the tax credit would be applied to your 2022 or 2023 taxes considering that the delivery of the vehicle and official commitment to the entire purchase is being made in 2023?

[@htn5173]

My bolt euv was bought in june 2022...will there be a tax credit for it under the new law. Or should I trade it in and get a new one with the tax credit?

[@dougf94912]

This was incredibly informative, thanks!

[@applesushi]

This is the best breakdown of this I've seen online so far. Thank you!

[@theSHale]

I converted my reservation deposit for a Vinfast VF8 to a contract. They say it should qualify for the tax credit under the old setup. Yes? the good news, even it doesn't Vinfast says they will give a $7500 rebate or reduced price.

[@tjs114]

Vinfast never qualified because they haven't delivered a vehicle so they will be held to the August 16th regulation; so assembled in North America to qualify for anything. The Vinfast battery lease program would also work against them because the government could say you aren't really buying an electric vehicle because you don't own the battery.

[@theSHale]

@@tjs114 don't believe that is correct, nor does Vinfast. Contracts signed prior to bill signing are eligible for the credit under the 'old' law.

[@normt430]

The Honda and Acura models based on GM Ultium EV battery platform will qualify as batteries will be made one of four U.S. battery plants.

[@torocars9227]

New Orders of 2023 VW ID 4 model year from America are being produced in USA. There last batch orders of 2022s are being shipped from Germany next few months.

[@idonotcarenow]

Don’t buy one of the last remaining 2022’s. Just ordered a 2023, or if dealerships/VW give you a $7500 incentive off the MSRP, buy it 😁

[@ATH_Berkshire]

@@idonotcarenow Odds on the last of the made in Germany ID4’s will end up as dealer stock. In the current EV market they will be able to sell them no incentive but immediate delivery without to much trouble.

[@idonotcarenow]

@@ATH_Berkshire I’m not sure, the car market has definitely cooled in CA, you can negotiate all dealer markups to 0 in SoCal.

[@berthogendoorn2133]

if I recall China currently has the LFP Patents and The LFP patents are due to expire in 2022 so LFP which have very readily available inexpensive materials could be moved to N. America.

[@tjs114]

The LiFePo battery technology patent is owned by LiFePO4+C AG, a consortium of Hydro Quebec, Johnson Matthey, University of Montreal and CNRS. They somehow were able to lay claim to John Goodenough's Lithium Ion development work that was modified to include Iron Phosphate by people at University of Texas, Austin and MIT. The reason it seemed to be 'owned' by China is because CNRS gave them a no-fee license, but that expires December 31, 2022.

[@pnketia]

This was very informative and cleared up some confusion I had about the credits. Thank you!

[@jimsmith94]

Alex, I'm a little late watching your video, but at around 5:35 you say that binding contracts signed before December 31, 2022 and delivered in 2023 will still qualify for the requirements that existed prior to 2023. I plan to order a 2023 Ford Escape PHEV when the order banks open on September 19th. The tax credit before August 16 was $6,843 based on the battery size. As I understand it, the new credit will be the full $7,500 until the end of the year and then the battery requirements kick in. If your statement is correct, I would be eligible for the full credit if my delivery is in 2023. Every other source I've found say that delivery must be made before 2023. Can you please clarify with the source you used?

[@steved1681]

The exact same question I have , right down to the same vehicle. Following

[@fercho1467ify]

I order an Kona electric de entry level 35000 does that one apply to the incentive

[@shubhang93]

@EV Buyers Guide I've a couple of questions regarding the $7500 tax credit- 1. If my tax liability is $7500 and I purchase an eligible EV in Dec'22 and happen to sell it some time next year would I be liable to an IRS credit 'recapture'? I get conflicting answers on this and I couldn't find proper info regarding this online. 2. I'm in SC, which is one of the title-holding states. Would the car be considered 'acquired' (as required by the IRS) if I'm financing the vehicle? Banks keep the title as long as you are financing with them. Thank you

[@honglinghe5705]

Where Is the ID 4 2023 battery made? Could you please let me know? Thanks

[@briancollins-friedrichs5641]

So helpful! Really appreciate the detail and clarity of explanation. Thank you!

[@frankcoffey]

Some automakers are complaining about this as if the credit was for them, it is not. The only way automakers or dealers can get any of that money is to raise the price of the car but if you raise it too much it no longer qualifies so it's just a window. The other issue is income limits. If the buyer makes more than the cap the credit is off the table. So if you raise the price of the car those buyers are paying more than buyers who do qualify. So do dealerships plan on doing income based pricing? That's going to cause a stink immediately. Lots of catch 22s in this thing. Also, if a non qualifying buyer buys a qualifying car that will waste a qualifying car that could have attracted a lower income buyer. Are they going to refuse to sell qualifying cars to upper income people? My point for automakers is 1. The credits don't belong to you, they are for the buyer. 2. Automakers/Dealers won't get 100% of them because even if the car qualifies if the buyer does not.

[@fazalkmd]

This is an important point that consumers have to fight for.

[@eleazar1302]

ok so you saying now we have to wait till 2024 to use the tax credit at the point of sale??? It wont start in January 2023?

[@ourblissfuldreams]

So I ordered a model y that is due to be ready December 18th if I delay the pick up until the first week of January would o get thr 7500 credit?

[@joseguadarrama255]

what is the credit on USED units. I read that the Fusion Energi is qualified up to 4k max tax credit. Along with many other models. Do you have any information on that.

[@EVBuyersGuide]

We talk about the used credit in tye video, it only applies to full EVs so far

[@JoseDRful]

I took delivery of a tesla model 3 RWD in august 15 2022. Will my car qualify for anything in 2023?

[@gib1262]

Question pls, I got Tesla Y on 03/22/23 Can I apply Tex credit on 2022 or 2023? I read on the IRS that tax credit can apply in either year. I’m not sure if I understand correctly

[@JamboneMan]

Concerning the cap, you said "price". It is very unclear if the price cap is MSRP or price paid at dealer. Also, is not clear if the cap includes the destination/delivery fees. I am trying to ask my CPA but i haven't got ac clear answer yet. The tax form just references price also. Help please?

[@georgem.210]

Ok, I have a signed purchase invoice retail sales order for a 2022 Kia EV6 dated July 18th, 2022 from a dealership. We agreed on a Price, then with fees, taxes, lincense, and delivery added to the price, the retail sales order was signed. I had to put down a non refundable $1,000.00 In order to complete the deal. Your video mentions something in reference to this, making me think I "might" still be eligible for the tax credit maybe? I do not consider any opinion as professional legal advice. Thanks for replying.

[@desmondcheah902]

Thanks for making things so clear.. :)

[@loriallen67]

I’m feeling brilliant for purchasing last year. I got the full $7500 credit. Whew.

[@idonotcarenow]

That’s hopefully if you didn’t get killed by the dealer price markups. If you bought at or under MSRP, you’re a rockstar!

[@loriallen67]

@@idonotcarenow MSRP

[@jeffgold5084]

Thank you for this video. I have a Tesla 2023 model three. Is there a document I should’ve received when I purchased a Tesla on June 5? Or do they send me something prior to your end for my $7500 tax credit. Thank you.

[@bulkmailbullseye70]

Has anyone heard of a 6000 or 8000 lb. curb weight maximum for the federal credits?

[@justduitman]

does a binding agreement Rivian that gets delivered in ‘24 qualify?

[@TomTheTechGuy]

Good info Alex... with the point of sale credit, I think it will be like how they sell Solar Panels. They budget the lower cost as if they tax credit was a down payment, and you agree to pay that tax credit on the 18th payment. Wish they could start that sooner.

[@nc3826]

correction. the IRS states starting in 2023 there will be two 2 tax credits for new clean vehicles of $3,750 , not just one of $7,500, based on battery criteria....

[@TeddyD802]

I’m unspeakably upset about this as I’ve been waiting for an ioniq 5 since spring. This part of the changes is a kick in the pants to the middle class. Now I’m not sure if I am going to buy an EV as I don’t like the mustang or GM products. Is there any chance that during the “rule making” they would roll back the loss of tax credits until January?

[@rosenkruez2]

Unfortunately, this was the purpose of the bill. They wanted to take away the tax credit as much as they can. Thank Joe Manchin for this ridiculous bill.

[@TeddyD802]

@@rosenkruez2 yep, I’m a consumer poised to buy a car and they successfully pushed me out of an EV

[@rosenkruez2]

@@TeddyD802 Same. This bill was not designed to increase EV adoption. In fact, the goal appears to be to discourage EV adoption.

[@doomsday9973]

Manchin did not want ev credits in the first place this is all he would allow. The bill is passed there is no chance of any changes

[@DonaldDickerson]

I completely relate. Have been on multiple waitlists between me and my partner for an Ioniq 5. It's definitely a slap in the face. There's really no reason to have required vehicles to be made in the US as soon as the bill was signed. They just reduced the time of the original tax credit that would have allowed for additional EVs to have been sold. This is purposeful

[@vijayjayaraman5990]

Excellent video. Precise and to the point. Great job

[@pete0078]

What if I purchase a qualifying electric vehicle (mustang mach-e) now, which is after August 16, 2022 but the possession is in 2023 as ford currently has 30 -35 week delivery time. My question is more from income limit perspective. I think if the delivery is before dec 31 2022 then I am fine as the income limit cap requirement kicks in 2023 but here we are looking at delivery in 2023 while I am ok to sign purchase agreement right now.

[@Unbox-me]

Alex can you do a video about what's the best EV range to get for your money that takes full advantage of the $7500 tax credit moving forward?? No one has done a video on this.

[@EVBuyersGuide]

It'll probably be a Bolt or Model 3/Y come January.

[@nc3826]

only using range/price.... how could Model 3/Y or any other US marketed EV beat the Bolt for value?

[@pete0078]

@@EVBuyersGuide How about your best pick before 1/1/23 for both income cap qualifier and non qualifiers

[@davidandrews7544]

This is an excellent breakdown in how to get a small portion of our salary back. Appreciate it!

[@idonotcarenow]

Awesome video Alex! Thank you.

[@hidros1461]

What happens if I buy a used 2020 tesla in 2022. Would I qualify for the credit?

[@nc3826]

correction, the IRS states the tax credit for pre-owned clean vehicles (section 25E).... starts in 2023 not 2024....

[@shelleytonycaoli5045]

Thanks for the explanation Alex!

[@barryrands786]

What if dealer markup pushes the price above the limit? Or is the price cap based on MSRP?

[@joetacchino4470]

So when it comes to existing contracts...I have one that meets all the criteria so I feel like I am grandfathered in having a car which should be conforming. However now that there is an income cap, I would be excluded even if I bought a conforming vehicle. Should I still be grandfathered?

[@leecandace7590]

thanks Alex for clarifying about the lease part. Many websites mentioned lease lenders should be able to apply tax credit to the leasing price.. it is not actually true... And Alex really explained it well.

[@joeb4294]

It still seems unclear whether crossovers will be labeled as SUVs or as cars. Is there an actual definition that draws a line for dimensions or weight?

[@helloandrewc]

I'm sure it's determined by the US EPA Fuel Economy classification. Most crossovers are in the "light truck" category.

[@cube1us]

Astute observation. One that not many people are picking up on. The way the legislation reads the IRS is supposed to create definitions which are similar to those in use by the department of energy and the EPA. However the EPA has two different definitions, one called small SUV under 6000 pounds gross vehicle weight and one called standard SUV over 6000 pounds GVW. My guess is that SUV is going to be the latter, Because I think the intent was to exclude vehicle such as those from Cadillac, the Lexus NX, and so on.

[@zv3053]

Does that tax included?

[@barryw9473]

Thanks for more info.

[@Irish_Mike_NYC]

So the situation Ford Customers are in is order banks opened mid august for those who pushed their order meaning it was sold out so they get to order 1st then mid September order invites go out for EV reservation holders, all extended range trucks are now over $80k but you’re saying if you order & put down a deposit before dec 31, 2022, the $80k cap doesn’t apply & you would still qualify even if the truck isn’t built & you don’t take delivery until after Jan 1 2023? If so that’s great 🙏🏻

[@cube1us]

The $80,000 Doesn’t take affect until after December 31, 2022. But what matters is when you take delivery. It doesn’t matter when you ordered it or when you put down a deposit or you have a contract or anything else. The binding contract terms only apply to contracts that were in place before August 16, 2022.

[@Irish_Mike_NYC]

@@cube1us thanks! There’s so much confusing info out there, thanks for laying it out straight 👍🏼

[@uwmalcolm491]

@@cube1us That's not what he says in this video between the 5 and 6 minute mark...he mentions that binding contracts made before the end of 2022 only need to meet the requirements from Aug 16-Dec 31st 2022. That would mean that purchase price cap and AGI requirements don't apply, and no battery/mineral requirements would need to be met yet I don't know where that information came from and would love to see it, as I'm looking at ordering a vehicle in the next few weeks that would be delivered in 2023.

[@han605]

Thanks for the video! Very informative.

[@ishan6771]

Hey Alex, just to be clear no income requirements for 2022?

[@aa-jj1wh]

Thank You for the great info.

[@pete0078]

So here’s my simple question on someone who will not qualify for credit from an income cap perspective starting 1/1/23. Can we still get the benefit if we order a mach-e or one of the cars from your list and hopefully get delivered before 12/31/22

[@doomsday9973]

Yes you can

[@pete0078]

Thank you. I searched a lot and seems like there is no way I can get a mach-e. So may I please ask a follow up question here. What if I purchase a qualifying electric vehicle (mach-e in this case) after August 16, 2022 but but possession is still in 2023 as ford is showing 30-35 week delivery time

[@doomsday9973]

@@pete0078 unfortunately as I understand the law if you exceed the cap you wouldn’t qualify because everything is based on date you take delivery and after Jan 1st the income caps go into effect. The Mach E is really that hard to find? Or is it just the GTs?

[@txdevops]

Awesome video and info. Thanks!

[@kimourchi7382]

Very well explained. Will BMW X5 PHEV get full credit in 2023?

[@TheAman12340]

Is there a cap on the number of vehicles that get the credit per manufacture like last time?

[@cube1us]

No that quantity limit goes away come January.

[@natehawkins2910]

Ok so, I bought a 2022 lightning platinum for Msrp at $93,680. Does it still quality because it’s bought before Jan 2023??

[@pioneer7777777]

I thought the battery and mineral requirements only came in at 2024?

[@quentinharrison6345]

Great video! Thanks. Question you mentioned you can use this tax credit once every 3 years on used EV's but is it all EV's or just the used ones? If I buy a new EV in 2023 that qualifies and I get the credit can I use it in 2024 to get another new EV?

[@stikshifter]

Can you trade in a car to lower the price of a used EV to $25k to get the $4k federal credit?

[@wleacock76]

The BMW X5 45e PHEV starts in the mid $60k, but options can easily push it over $80k. Are the options counted against the $80k ceiling? If so, a lot of people will limit their options to keep the price below the $80k threshold.

[@doomsday9973]

Yep if you option it above 80k it will not qualify. It’s MSRP including all options

[@captaintomst]

Your best bet would be to buy one that comes in below 80,000 and then add whatever options are possible after it leaves the Dealer's lot, like different wheels and tires, protection Packages Etc

[@davidz7858]

$80000 should be the final price even includes shipping cost, you if you plan to add options, you need to calculate it

[@jianguozhu543]

great video. thank you

[@TheDavidDiaz]

So wait until 2023 to buy a Bolt EUV?!

[@balakumarnagarajan4551]

Would a deposit in pre-august 2022 and delivery in January 2023 of model Y qualify for a tax credit?

[@hosabi]

No, it should be ordered after Aug 16th 2022

[@kodoq88]

Hi Alex and all subscribers, Do you have any information on USED ev cars restrictions? Like, does kia is eligible for used car tax credit? Thank you

[@barryrands786]

Yes, Kia qualifies. North America origin does not apply to the USED EV credit.

[@neemanajib]

Hi, EV buyers guide... i have a question...will tesla base model 3 qualify for tax credit??? Any respoonse is highly appreciated... 😊

[@Brian-dd2df]

Is VW going to be moving any production of the Pro trims (larger battery) of the ID4 to the US at some point?

[@swait239]

What cars qualify exactly?? Some Model 3’s and/or some model Y’s? Please elaborate on which trims qualify, if possible. I’m in USA.

[@lisamusci9976]

ordered a kia ev6 on july 25,2022. placed a 5K deposit. purchase price $54.500. Do i still qualify for 2022 tax credit?

[@daprinceomar]

Wait so the Ioniq and Kia EV6 wont count?

[@JuliusSDeLaCruz]

Amazing info. QQ, so with the Mach E + Ford Options do you get to claim the $7500 tax credit (provided you owe $7500 or more in taxes)?

[@doomsday9973]

Yes Although it’s your tax liability not what you owe at tax time

[@pitomercado1]

I am waiting for an ID4, which is in transit on the vessel and was built in July 2022, as per the VW communications. Would this qualify us for the tax credit as it was manufactured outside the US BEFORE August 16?

[@theaccentman93]

Yes, if you had a binding contract prior to August 16th.

[@alexmedina6742]

I bought my Hyundai ioniq 5 in may of 2022 do I qualify for $7500 rebate

[@juyeonryu]

i deposited $250 for my tesla model y in july and just got text msg that i will get it on jan 1, 2023. am i still eligible for $7500 if other requirements are all met? please let me know asap, i need to decide soon.....

[@Driven-Productions]

Good content my man

[@santabarbarian5049]

Battery composition requirements aside, is a Subaru Forester PHEV likely to be made in the US of Japan? It would be nice to have another AWD PHEV on the list.

[@KalleSWBeck]

Confusing but great changes. Bring manufacturing back here and the point of sale will help a ton of people that actually needs it.

[@bradb2141]

This bill will bring manufacturing to Canada and Mexico, not the USA! The Chevy blazer EV will qualify and Gm is not making it in the USA. It’s Mexico I believe. And not increasing the limits with inflation means in a few year No EV’s will qualify.

[@ATH_Berkshire]

@@bradb2141 Or EV’s will be developed at a lower price point as technology improves. There are a ton of ICE Toyotas sold every year for less than $50k, in 5 years lots of them may well be Plugins.

[@mickey5fl]

So, if I buy a EV in November 2022, can I still file for a tax credit on my 2022 taxes?

[@kevinc7756]

If I have a binding contract now to get a 330e that will deliver next year, will I get the tax credit regardless of income?

[@doomsday9973]

You should yes

[@cube1us]

There are a couple of things going on here. First of all except for the case where you had a binding contract before August 16, the rule that will apply will be the rule in effect when the vehicle is placed in service not when it is ordered. The only case where when the there is a contract is the special case where are the contract was signed before August 16. Suggest reading the IRS page on what is a binding contract that they published on August 16. To have a binding contract you need to have either a nonrefundable deposit of at least 5% of the vehicle price, or you have to have some kind of forfeiture clause for 5% of the vehicle price. The contract I have states the latter. If you don’t have one of those two then the IRS will not consider the contract binding. For example suppose you have a $1000 nonrefundable deposit. According to the IRS webpage that would not be sufficient to make the contract binding. And you had to have that binding contract in place before August 16. If you don’t then the rules that will apply will be those when the vehicle is placed into service, i.e. delivered to you.

[@paullopresti3170]

I signed a contract, with an non-refundable deposit, on a Mini Cooper SE in March, 2022 and am taking delivery, due to lead time, in November. Do I qualify for the 7500 tax credit per the rules before August, 2022 including the North American assembly requirements?

[@divid3dbyZero]

So if I buy a Bolt this year, not tax credit for me?

[@doomsday9973]

Nope not until 23’

[@OmerKhan1]

New respect for you, amazing job!

[@jenelintorrez3636]

I ordered my 2023 model 3 tesla on 9/04/2022 and delivery date was 11/30/2022. Do I qualify for anything? Help me 😭😭😭😭

[@namkyungcho8434]

Great summary! By the way, is a BMW X5 PHEV still going to be qualified for $7,500 tax credit in 2023 as long as it is ordered under $80,000 MSRP then?

[@jorgepalma551]

oh dang. So should I be canceling my ev6 order? Looks like i wont get the tax credit.

[@doomsday9973]

That’s up to you. Do you really want the car?

[@retropenguin49]

Can I claim the tax credit multiple years or is there a restriction? I will claim my first tax credit next year since I purchased an EV earlier this year. Can I purchase another next year and claim in 2024 ? I did hear of the 3 year rule but from the video it seems to be only on used vehicles.

[@tjs114]

You can only claim the EV credit once per tax year. So if you bought a new EV every calendar year, you could in theory use the EV credit if the vehicle qualifies on that year's tax return. We'll use Alex as an example, he's purchased the Kia EV6, the Rivian R1T and the Ford F-150 Lightning in Calendar year 2022, he'll only be allowed to take a tax credit for 1 of them and he lost the right to claim tax credits on the other 2 because they were purchased in the same calendar year. But he had the EV tax credit for the Mustang Mach-E he purchased in a previous calendar year, along with the tax credits he had for the Hyundai Nexo and the Kia SoulEV he bought even further back (assuming they weren't leased.) The 2-year rule is for used EVs. If you buy a qualifying used EV in 2024, you couldn't get another credit until 2026 for a used vehicle. Now the real question, can you qualify for a new EV credit and used EV credit in the same calendar year?

[@EVBuyersGuide]

@@tjs114 Not quite. In a joint filing it is possible to claim 2 credits per year. Also, corporations purchasing EVs are not limited in the same way as individual filers and all three EVs are owned by our parent company.

[@lschroeder1947]

Will 2023 Bolt EUV battery in 2023 give you 2nd 3750 deduction for battery? Looks like your video says does know answer at present time. Second question, can I order today for delivery in 2023, or is this not allowed?

[@doomsday9973]

No one knows about the battery credit for the bolt yet. Yes you can order today but if you get delivered before the 1st of Jan you are screwed

[@kennyhar7179]

I know they take the lesser of the MAGI of the current tax year and the preceding tax year right? So like you said, in 2024 (for 2023 income) when I file for the return, I can use my 2022 income right?

[@cube1us]

I think it depends. Once the point of sale option comes into play then it would depend upon the previous years AGI. Until then it happens when you file your taxes and so I suspect it will depend upon the AGI for the tax year for which you are filing. But I haven’t gone back into the legislation to read that carefully to be 100% sure.

[@dinoradoncic3752]

Hi, burning Question here; I made a reservation for a model Y on Aug 12, delivery is around March 2023, will I qualify for the 7500$ if I take delivery in 2023 even though my reservation was on Aug 12? Or do I need to place a reservation after jan 1 2023 to get the credit? Thanks!

[@doomsday9973]

Reservation Dosent matter. Only delivery. As long as you get it in 2023 you are good

[@jeffreff2000]

Plug in hybrids still qualify assuming they meet all the other new qualification rules?

[@doomsday9973]

Yes for the full 7500 now

[@TravelerAndyCc]

Nice vid Alex, so the income limit has taken effective immediately, right? Even after agi, it’s more like a dealbreaker for many ppl.

[@doomsday9973]

Some but the vast vast amount of the population will qualify. income limit kicks in until 2023. And honestly those that make above that don’t need the credit

[@EVBuyersGuide]

No, the income limit starts Jan 2023

[@Dzey]

I ordered my Tesla Model 3 RWD last July and I have an estimated delivery date of Nov21-Jan2. Should I cancel or push Delivery to Jan to qualify? Is that even possible?

[@tjs114]

You likely won't qualify for a tax credit in either case. Any Tesla delivered before January 1, 2023 isn't eligible for a tax credit because the sales cap is still in effect. On January 1, 2023 your Model 3 has to cost less than $55,000 AND the battery components fall under the content and construction limitations Alex mentioned which is only the base RWD and that uses the LiFePo battery pack from China and therefore doesn't qualify.

[@nc3826]

only if it is delivered on or after January 1, 2023 with a battery pack that qualifies for both $3,750 tax credits....

[@i_dont_even_know8818]

ex: I order a Mach-e next month and the delivery day is in 2023. Do I get the old credit or the new credit? If I get the old credit, does the income limit still apply?

[@doomsday9973]

If you get it in 2023 you will get the new credit and income will apply