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Reviewed the Senate Inflation Reduction Act bill text and, as it is currently written, ID4's coming from Germany will not qualify for the federal tax credit starting with any vehicles sold as of the day after the act is signed into law. Here are the relevant parts:

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The above is from page 366, and it amends the Internal Revenue Code Sec 30D so that vehicles which are not assembled in North America will not be eligible for the credit. They define final assembly as:

the term ‘final assembly’ means the process by which a manufacturer produces a new clean vehicle at, or through the use of, a plant, factory, or other place from which the vehicle is delivered to a dealer or importer with all component parts necessary for the mechanical operation of the vehicle included with the vehicle, whether or not the component parts are permanently installed in or on the vehicle.
The bill also makes this amendment to the IRC Sec 30D effective as of the bill being signed into law. Which could be as soon as the next couple of weeks. See page 386:
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This is really disappointing having waited for 6 months just to lock my order last week, and now the credit won't apply to my vehicle. I made my decision months ago based on the availability of the tax credit at the time (which was not set to expire, nor was VW in danger of hitting its cap). If you are in a similar situation, please contact VW customer care, your dealer, and your senators to express your disappointment. I'm sure VW is lobbying for a change, but hearing from pending customers can't hurt. For senators, send something similar to the below. You can send it via email form on their website (set issue to "Energy").

Subject: Elimination of EV federal tax credit for imports

Dear Senator ___,
While I am pleased the Senate is taking action on climate change, it is disappointing that imported EV's will no longer be eligible for the federal tax credit. Because EVs are in high demand, and inventory is almost non-existent at dealerships, many of us placed orders months ago to have a new EV built and delivered. At the time the tax credit was applicable to imported EVs. The bill under consideration should either remove the requirement that EVs be assembled in North America to get the credit, or delay the effective date of this requirement to allow those who have existing orders to receive and purchase their new vehicle. Please work with your colleagues on the Energy and Natural Resources Committee to implement this change or offer an amendment when the bill comes to the floor. Thank you.
 

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This bill will not pass. Sinema hasn't endorsed it. Manchin, unfortunately, sold out to the liberal wing of the Democrat party. He resisted long enough, but finally buckled under the pressure. Sinema is an athlete (triathlon or marathon runner???). She can withstand the pressure. She is also from a very conservative state (as is Manchin). She has no incentives to support this spending bill. The whole "Inflation Reduction Act" business is a bunch of BS. This is a half-trillion spending bill.

Chill everyone. This bill is dead in the water.
 

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This bill will not pass. Sinema hasn't endorsed it. Manchin, unfortunately, sold out to the liberal wing of the Democrat party. He resisted long enough, but buckled under the pressure. Sinema is an athlete (triathlon or marathon runner???). She can withstand the pressure. Chill everyone. This bill is dead in the water.
I think this bill has a very good chance of passing. The worst case must be planned for, I believe.

Of course, if it does pass, the 2023 ID.4s should qualify, I think. It will be questionable, based on effective dates of all the various sub-clauses, for the 2022 ID.4s.

Worst case scenario would dictate I cancel my 2022 order and re-order for 2023. I will not enjoy this if this happens, but it will be worth the additional wait to save up to $7500.

Dave
 

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The government fiscal year starts October 1 - if memory serves.
Yes the federal government operates on a fiscal year that begins and ends in Oct, but the US tax period is Jan 1st to Jan 1st. Which makes me think any tax implication would be bumped to the next year. However, I have no experience in law making so its speculation.

Here's hoping that the VWOA lobby is doing its job to correct what looks like an oversight. A lot can happen this week
 

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Yes the federal government operates on a fiscal year that begins and ends in Oct, but the US tax period is Jan 1st to Jan 1st. Which makes me think any tax implication would be bumped to the next year. However, I have no experience in law making so its speculation.

Here's hoping that the VWOA lobby is doing its job to correct what looks like an oversight. A lot can happen this week
Worst case scenario, VW will have to load the cars made for the US onto a ship and send them back to Germany or discount the cars by $7,500 and sell them here in the US. They could also possibly ship them to Chattanooga, retrofit them with heat pumps and daytime running lights for the Canadian market and ship them across the border to Canada.

Fortunately, the Chattanooga plant has already come online.
 

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The bill will go into effect on the date that is written in the bill. I have read previously that this one will be Jan 1 2023. So I better have my car by Dec 31 (Oct 2021 reservation) or it will go into the "cancelled" bucket. I would think that VW would be sweating bullets to get those last German-built cars delivered ASAP as I doubt that I am the only one that would punt in this situation. What a nightmare to have thousands of unsellable cars sitting in US ports.

That said, I cannot believe they will be stupid enough to put this clause in the final bill. Even the Mach-E would lose the rebate as it is built in Mexico. But hey, never underestimate the stupidity of the US Congress.
 

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The bill will go into effect on the date that is written in the bill. I have read previously that this one will be Jan 1 2023. So I better have my car by Dec 31 (Oct 2021 reservation) or it will go into the "cancelled" bucket. I would think that VW would be sweating bullets to get those last German-built cars delivered ASAP as I doubt that I am the only one that would punt in this situation. What a nightmare to have thousands of unsellable cars sitting in US ports.

That said, I cannot believe they will be stupid enough to put this clause in the final bill. Even the Mach-E would lose the rebate as it is built in Mexico. But hey, never underestimate the stupidity of the US Congress.
The Mach-E would be fine, the clause says North America, not the US. But still, it would be a mistake to enact such a clause so quickly in my book.
 

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This bill will not pass. Sinema hasn't endorsed it. Manchin, unfortunately, sold out to the liberal wing of the Democrat party. He resisted long enough, but finally buckled under the pressure. Sinema is an athlete (triathlon or marathon runner???). She can withstand the pressure. She is also from a very conservative state (as is Manchin). She has no incentives to support this spending bill. The whole "Inflation Reduction Act" business is a bunch of BS. This is a half-trillion spending bill.

Chill everyone. This bill is dead in the water.
I wouldn’t be so sure. She isn’t going to like the minimum tax on corporations but there’s a $12 billion battery plant being built in her state. I wouldn’t be surprised if she ends up on the board in compensation for losing her senate seat or a nice job on CNN.
 

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I can’t help but think there is a low level DC insider on this forum right now watching these comments play, out biting their tongue, and possibly laughing also.
Or maybe I’m just projecting. 😂
 

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Mexico is part of North America so that part’s all good. The battery materials might be a different matter.
The bill will go into effect on the date that is written in the bill. I have read previously that this one will be Jan 1 2023. So I better have my car by Dec 31 (Oct 2021 reservation) or it will go into the "cancelled" bucket. I would think that VW would be sweating bullets to get those last German-built cars delivered ASAP as I doubt that I am the only one that would punt in this situation. What a nightmare to have thousands of unsellable cars sitting in US ports.

That said, I cannot believe they will be stupid enough to put this clause in the final bill. Even the Mach-E would lose the rebate as it is built in Mexico. But hey, never underestimate the stupidity of the US Congress.
 

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The bill will go into effect on the date that is written in the bill. I have read previously that this one will be Jan 1 2023. So I better have my car by Dec 31 (Oct 2021 reservation) or it will go into the "cancelled" bucket. I would think that VW would be sweating bullets to get those last German-built cars delivered ASAP as I doubt that I am the only one that would punt in this situation. What a nightmare to have thousands of unsellable cars sitting in US ports.

That said, I cannot believe they will be stupid enough to put this clause in the final bill. Even the Mach-E would lose the rebate as it is built in Mexico. But hey, never underestimate the stupidity of the US Congress.
Was thinking the same thing earlier this afternoon. It’s enough you got people waiting months without no communication whatsoever about what’s going on to do this stupidity. Was thinking this is going to be a bright month I still have hope.
 

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What is the definition of "final assembly"? If you install a software update at the port in Houston, does that count? Or is it a regulatory thing with stickers on the car and entries in the paperwork somewhere that already say "final assembly in Germany."
 

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The bill will go into effect on the date that is written in the bill. I have read previously that this one will be Jan 1 2023. So I better have my car by Dec 31 (Oct 2021 reservation) or it will go into the "cancelled" bucket. I would think that VW would be sweating bullets to get those last German-built cars delivered ASAP as I doubt that I am the only one that would punt in this situation. What a nightmare to have thousands of unsellable cars sitting in US ports.

That said, I cannot believe they will be stupid enough to put this clause in the final bill. Even the Mach-E would lose the rebate as it is built in Mexico. But hey, never underestimate the stupidity of the US Congress.
The rule goes into effect as soon as President signs the bill. Biden will sign it as soon as it's passed. So, this bill may go into effect literally within the next 7-14 days. My hope is that Sinema will vote against and kill it.
 

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This bill will not pass. Sinema hasn't endorsed it. Manchin, unfortunately, sold out to the liberal wing of the Democrat party. He resisted long enough, but finally buckled under the pressure. Sinema is an athlete (triathlon or marathon runner???). She can withstand the pressure. She is also from a very conservative state (as is Manchin). She has no incentives to support this spending bill. The whole "Inflation Reduction Act" business is a bunch of BS. This is a half-trillion spending bill.

Chill everyone. This bill is dead in the water.
Not to get political but making a statement like that seems to be not the best choice for a forum dedicated to EVs. Sure some people agree with you but many do not.
 

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What is the definition of "final assembly"? If you install a software update at the port in Houston, does that count? Or is it a regulatory thing with stickers on the car and entries in the paperwork somewhere that already say "final assembly in Germany."
A software update would not qualify as part of the assembly process. Or at least not enough to count as an assembly location.
 
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