08-15-2022, 12:52 PM | #1 |
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Will 2023 330e still get the $5,836 federal tax credit per new EV bill?
One of the biggest reasons that I decided to order 2023 330e was the ~$6k federal tax credit and ~$1k California tax credit.
However some saying that the new EV tax credit bill (part of the massive Inflation Reduction Act) will only allow the cars final assembled within USA and . This will immediately disqualify 70% of the currently eligible EV and PHEV. WTF?! I spoke to dealer about this and they don't know for sure either. Some saying we should immediately sign and document "binding" purchase agreement with the dealer with proof of order deposit. Since the new EV bill still hasn't been formally approved by the congress, having this binding sales agreement done prior to the new EV bill effective date will allow 2023 330e to be eligible for tax credit. Not sure if this is true or not, but it doesn't hurt to document all since I've already made order deposit. https://www.reuters.com/business/aut...ts-2022-08-12/ |
08-15-2022, 02:52 PM | #2 |
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When Biden signs the legislation this week, you need to be under contract.
My dealership gave me a contract Friday- my order has been pending for three months. If you don't take delivery by Dec 31 - you lose the credit. The new legislation (when it becomes law on January one)has so many exclusions - it's unlikely the 330e will qualify. Do what you can to get a binding contract ASAP |
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08-15-2022, 06:30 PM | #5 |
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Federal government must get their objective and priority straight. If they really want to make cleaner air and better environment, they SHOULD give tax credit to all EV & PHEV sold in USA regardless of where they're made. Are they saying only EV & PHEV made in USA will provide cleaner air?
What they're really trying to do is help certain industries (obviously Ford, GM and other US car manufactures) in certain states where their politicians know exactly what they're doing to get more vote. It's all political but they're trying to disguise it as if they're trying to make world better place. |
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08-16-2022, 04:17 AM | #6 |
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Im a little concerned because I have a 2023MY 330e and its currently on final assembly. I am most likely going to receive this car in the next 1-2 months before the end of the year. Should I be worried or am I in the clear since its being built in Mexico? Should I get a written binding contract with the dealership? When is Biden signing and when will it be effective?
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08-16-2022, 07:58 AM | #7 |
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Any update on this "binding contract" stuff? I ordered a 330e for my mother and she is really counting on that tax credit.
Is it delivery or "binding contract" enough? Word is that the President will sign today Tuesday 8/16/22 |
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08-16-2022, 09:49 AM | #8 |
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There’s quite a discussion on the i4 forum about this
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Air, Water, Fire and Sportscar" -Bill Frank |
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08-16-2022, 11:15 AM | #9 |
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My understanding is on the day the bill is signed; the vehicle must be assembled in North America. The 330e assembled in Mexico should be fine. It is different for the i4 as they are assembled in Germany. If you want to be absolutely sure, you should work with the dealer to make the order document clearly binding. My order document, which is a standardized form the dealer uses, has language in it that they can hold me on to complete the purchase or I risk losing the deposit.
Also there are other part of the bill that will most likely make the 330e ineligible when the rule goes fully into effect on 1/1/2023. Last edited by Aziego; 08-16-2022 at 11:26 AM.. |
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08-16-2022, 11:37 AM | #10 | |
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08-16-2022, 12:46 PM | #11 |
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Well, this at least answers some of the questions we have. So if 330e is final assembled in Mexico, we're good to receive the federal tax credit. If not, you'll need some kind of BS binding sales agreement.
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10-21-2022, 05:47 AM | #12 |
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I agree with the opinion that for anyone who wants to buy a car, it's better to do it right now. Even if you don't have enough money for it, it's better to take out a loan and buy a car. I am currently studying the recommendations of the site https://www.greedyrates.ca/blog/how-to-get-a-car-loan-in-canada-when-you-have-bad-credit/ to get the opportunity to buy a car on the most favorable terms. If I don't do it now, it will soon become so expensive that buying a car will be indestructible.
Last edited by medsark; 10-21-2022 at 06:14 AM.. |
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10-21-2022, 11:26 AM | #13 |
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From my understanding, assembly must be North America which includes Mexico. The 330e qualifies in that aspect. Their other EV models do not. Then you have the battery component, which I'm less sure of, I dont know where BMW sources their batteries from but its not a straight 100% requirement. I think 40% of the batteries need to be from North America or US not sure which, and that number will go up each year starting in 2023 (so its not active yet). There are at least 2 US Lithium battery producers, I have a feeling they will be very busy in the coming years, it will also incentivize non US companies to bring battery production to the US, that should work itself out through market forces and part of the long term benefits of the plan. Finally there is an earnings requirement and MSRP limit. On cars its 55k or less MSRP which should not be an issue unless you really load up the car, and your AGI limit is 150k single, 300k joint w/ no more then 225k if hoh. The good news is that the credit goes up to $7,500 if BMW & the purchaser meet all those requirements.
If you already ordered a 330e you will qualify for the $5,800 or so credit. The only component that went into affect in 2022 was the North American assembly and as mentioned Mexico cars qualify. Last edited by Norra Norra; 10-21-2022 at 11:32 AM.. |
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11-24-2022, 05:14 PM | #14 |
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If received before Dec 31, 2022 no worry!
After Dec 31, 2022: Yes, it will as long as: the MSRP of your built is under $55K, including delivery cost :-((((. And your income before any deduction, is not too high (300K if married, 150K is single). Also be VERY aware that you need to adjust your tax deduction or no credit, because (1) you cannot carry it to the next fiscal year (2) they will not refund you. You need to be in a situation when you owe IRS the equivalent of the tax credit. Ex: after doing your taxes, because you under paid, you owe $8K. You apply your tax credit of $5+ and you now need to send IRS a little less than 3K. In the process, you might have a small penalty of under paying your taxes during the year, but no big deal. This is the link to the text: https://www.congress.gov/bill/117th-...bill/5376/text I have been over and over this because I am in the process of getting an X5 45e and because of the dealer incompetency, I might get it in January, so now I have to revise my built to be under the $80K limit for SUV. FYI, I ordered that x5 in August and I am beyond furious. |
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11-24-2022, 05:23 PM | #15 | |
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11-24-2022, 06:00 PM | #16 | |
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Additionally, if you take delivery after January 1st, the battery sourcing requirements come into effect. |
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12-16-2022, 08:54 PM | #17 |
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Has anyone gotten more clear on if the battery sourcing qualifies for the 330e? Window sticker says majority of components from Germany, but not sure on battery itself. Production is in Mexico, but if it doesn't meet battery sourcing requirements doesn't matter.
Also, please no need to adjust withholding per above, though I suppose this could provide you the credit over the course of the year vs as a refund in April (assuming total tax liability excess credit). |
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12-17-2022, 05:37 AM | #18 |
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I believe the battery requirement is implemented in 2023. At this point, the assembly point must be in North America. Mine is a 2023 that was ordered in September but my contract date was November 2022. So I still qualify, as my final assembly point was in Mexico.
“If you purchase and take possession of a qualifying electric vehicle after August 16, 2022 and before January 1, 2023, final assembly of the vehicle had to be completed in North America, otherwise the same rules in effect prior to the enactment of the Inflation Reduction Act apply (including those involving the manufacturing caps on vehicles sold).” Source: https://fueleconomy.gov/feg/taxevb.shtml |
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