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According to the Washington Post (Carmakers say the climate bill sets impossible targets — The Washington Post) ”The proposal [which is the subject of this thread] renews an existing $7,500 credit for electric cars that has few strings attached but is also no longer available for the most popular car models. It gets phased out for each carmaker after they sell 200,000 electric vehicles.” So those of us who reserved an ID.4 will probably see the federal tax credit we were hoping for.
 

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The latest EV Bill is over 366 pages long. I wonder if anyone has contacted VW itself to get their take on this new bill and how it may affect them. I wouldn't contact your dealer for answers, they don't know and beside that they wouldn't tell the truth to you anyway. Your Senator is the same. I would go to the source. There are caps on overall income, caps on overall cost of the EV you want, and restrictions on where the materials come from for the manufacture on the battery. Nothing is in concrete as yet. This entire EV Bill is a mess along with all EV misinformation. We need to bug the hell out of VW all how it affects the buyer of the ID 4. I locked in on my ID 4 this pass June and I'm so bloody frustrated with the lack of truthful information and run around from those that supposedly know all.
 

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ID4 AWD Pro S, Glacier White, Lunar Grey interior
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More on the topic - U.S. Congress office sees few tax breaks for EVs under Democratic plan

"A proposal by U.S. Senate Democrats to put income, price and domestic content conditions on electric vehicle tax breaks could initially sharply curtail the number of EVs that qualify, the Congressional Budget Office said on Wednesday.

The CBO estimate said the electric vehicle tax credits in a $430 billion climate and energy bill would cost taxpayers only $85 million in 2023, the equivalent of about 11,000 vehicles if all received $7,500 credits."
 

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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:

View attachment 13755
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 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:
View attachment 13758
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").
 

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The Wall Street Journal published an article today about the $7500 tax break causing problems for the car makers, but it is solely focused on the batteries and mineral components. This isn’t the complete article, just the salient parts.


Auto Makers Ask Congress for Easier Path to Electric-Vehicle Tax Break
Draft rules for battery parts and minerals mean few current vehicles would be eligible, say lobbyists..
The bill would enhance the electric-vehicle tax credit in some ways, including making vehicles produced by General Motors Co., Tesla Inc. TSLA 0.16%▲ and Toyota Motor Corp. TM -3.67%▼ eligible for the subsidy again.

But the proposal would stiffen the requirements for an electric vehicle to qualify. Only U.S.-built vehicles would be eligible. It also pushes car companies to bring more manufacturing to North America, including setting minimum thresholds for the value of battery components that must be manufactured or assembled in the region. Essentially any EVs with battery components made or processed in China would be ineligible for the subsidy.

Car-industry lobbyists say meeting the new requirements on batteries could take years to achieve. The majority of processing for major battery minerals, including lithium, nickel and cobalt, is done in China, according to research firm Benchmark Mineral Intelligence.

Most electric-vehicle models on the market today wouldn’t qualify for the EV tax credit as drafted because they have too much battery content sourced outside of North America, the industry lobbyists say.

Instead, GM, Ford Motor Co. and other car companies are asking for a longer timeline to reach the requirements, and to expand the number of countries from which minerals can be sourced, according to people familiar with their lobbying efforts.

Tesla has been investing in a battery supply chain for longer than traditional auto makers. Still, its vehicles likely wouldn’t qualify for tax credits under the proposed rule

Only about 15% of electric-vehicle minerals are extracted or processed in the U.S. or by its free-trade partners, said Douglas Johnson-Poensgen, chief executive of Circulor, a startup that has helped several European auto makers trace the origins of their battery content.
 

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I read somewhere that senate bills generally become effective 90 days after the end of the session in which the bill was approved unless the effective date is specified in the bill. This was an answer to a generic question and so I really don’t know what it means for the inflation reduction act. I hope someone on this forum knows.
 

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Looks like it will pass the Senate. They are hoping for a vote next week.

An article from Insider. All 50 Democrats reach agreement on Manchin's Inflation Reduction Act, Schumer says, saving Biden's agenda
  • Sen. Kyrsten Sinema is ready to "move forward" with Democrats' Inflation Reduction Act.
  • The update comes after days of silence from the Arizona moderate, who was the last holdout.
  • Senate Majority Leader Chuck Schumer said the final version of the bill will be introduced on Saturday.

 
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If you're under contract, ie paid your deposit, before the law you should be covered as I read it. It would affect anyone who orders after that who may have an issue but even then those should be from the Tennessee plant so likely no problem
A "refundable deposit" might not be viewed as a "binding contract". I think we'll be hosed if we take a German built 2022 after the effective date of the Bill.

Dave
 
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A "refundable deposit" might not be viewed as a "binding contract". I think we'll be hosed if we take a German built 2022 after the effective date of the Bill.

Dave
yes, this definitely would not work. What they want is a bill of sale.
What I am confused about is what is the effective date of the bill. The language is confusing.
 

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(2) Final Assembly provision is upon signing, mineral requirements kick in after guidance is issues by the secretary
(3) Per Vehicle Dollar Limitation and Related -After guidance is issues by the secretary
(4)Transfer credit - Vehicles placed into service after 12/21/2023
(5) Manufacture limitation - Vehicles sold after 12/21/2022
Yep. (2) kills the Tax Credit for 2022s after the bill is signed, if not changed.

Dave
 

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That does not make sense. So between the day the president signs the bill and Dec 31, 2022 - there is no tax credit at all? They should just say effective date is 01-Jan-2023 and be done with it. Looks like Sinema only read the corporate tax sections because her donors were pushing her.
 

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That does not make sense. So between the day the president signs the bill and Dec 31, 2022 - there is no tax credit at all? They should just say effective date is 01-Jan-2023 and be done with it. Looks like Sinema only read the corporate tax sections because her donors were pushing her.
It does seem to create a period with no tax credit. I believe the transition rule would be in effect for some purchasers during that period. As with any tax strategy you need to ask your tax advisor and be pro-active to qualify.

I read the Transition Rule as if you buy a vehicle, or have a binding contract to purchase with your dealer up until the enactment date (president signs), that vehicle is treated as if it was bought under the old tax credit rule. Both conditions in the Transition Rule are based on enactment date not 1/1/2023.


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That does not make sense. So between the day the president signs the bill and Dec 31, 2022 - there is no tax credit at all? They should just say effective date is 01-Jan-2023 and be done with it. Looks like Sinema only read the corporate tax sections because her donors were pushing her.
Under the draft legislation, after the bill is signed until the end of 2022, the current credit rules still apply (so manufactures that are out of credits are still out, it’s a credit not a rebate, current income caps still apply) but it also must have final assembly in North America. Think that pretty much leaves Ford and Rivian for companies getting the credit for the rest of ‘22, but I may be wrong on that. Then the rest of the rules (battery composition, lower income caps, no manufacturer caps) kick in 1/1/23. So hopefully the wording changes!
 
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