Fisker's Response to EV Tax Credit

@seancallahan

All who booked Fisker One with 5000$ advance eligible for tax credit? If so will we be able to claim as part of 2022 or 2023 Tax Returns?

Per official news from Fisker, I assume they are not claiming any confirmation on tax credits?

@narendar-goud We need to wait and see how things shake out.

@seancallahan Its like buying Solar panels. 😎  Tax credit only.

I don't think anyone will know, for sure, if their vehicle qualifies for this hopeful tax credit, until they get the VIN, which probably won't be available until the final purchase/registration paperwork is generated.  I believe that will be at the final "sign and drive", when you take delivery.  Once you have that number, you can plug it into the IRS website, to see if it qualifies.

After the Caddilac Lyriq fiasco, anything can happen, while the final criteria is worked out by the end of March.  It is a true shame, that the EV tax credit rules were a step change, and not a phase in (like they did with the battery mineral content part), to give everyone who was expecting to get the credit, and the auto manufacturers, time to make adjustments.  As it is, we may end up paying over 10% more for our Ocean One's, than we had anticipated 6 months ago.

@seancallahan may be the first "One" (pun intended), to find out, when he gets his beauty delivered.

Can anyone verify the fact that if an ev is leased, the $7500 credit goes to the manufacturer as it is considered a commercial fleet vehicle. The manufacturer can then pass the$7500 to the purchaser reducing the total price of the vehicle and thus the monthly lease amount.  

Posted by: @paktechpaul

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I don't think anyone will know, for sure, if their vehicle qualifies for this hopeful tax credit, until they get the VIN, which probably won't be available until the final purchase/registration paperwork is generated.  I believe that will be at the final "sign and drive", when you take delivery.  Once you have that number, you can plug it into the IRS website, to see if it qualifies.

After the Caddilac Lyriq fiasco, anything can happen, while the final criteria is worked out by the end of March.  It is a true shame, that the EV tax credit rules were a step change, and not a phase in (like they did with the battery mineral content part), to give everyone who was expecting to get the credit, and the auto manufacturers, time to make adjustments.  As it is, we may end up paying over 10% more for our Ocean One's, than we had anticipated 6 months ago.

@seancallahan may be the first "One" (pun intended), to find out, when he gets his beauty delivered.

The VIN number doesn't have anything to do with One buyers and other preorders who are claiming grandfathered status.  It's only for vehicle models purchased after the law was signed that have both domestic and foreign production facilities where proof of NA assembly is specific to the individual car.

@docsling to the leasing company (does not need to be the manufacturer). There are then a few ways to use it to drop the cost. They can apply the entire thing to the lease payments as essentially a pre-pay (most advantageous), they can reduce the capitalized cost of the vehicle by the $7,500 (least advantageous), some hybrid in between.

Posted by: @bayoubob

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@docsling to the leasing company (does not need to be the manufacturer). There are then a few ways to use it to drop the cost. They can apply the entire thing to the lease payments as essentially a pre-pay (most advantageous), they can reduce the capitalized cost of the vehicle by the $7,500 (least advantageous), some hybrid in between.

Why would reduced capitalized cost be less advantageous as a pre-pay payment?  Aren't both treated the same way?  The least advantageous would be the leasing company pocketing the $7,500 and not passing any through to the consumer.

Looks like its going to get harder to get that grandfathered EV credit.  https://www.yahoo.com/news/manchin-bill-delay-tax-credits-164827819.html

@ttrinchi obv the leasing company keeping the money is the worst case. 

if residual is % of purchase price (net of cap reduction) then you are better off with the original price and reducing payments by 7,500. If residual is unaffected by cap reduction then it is no different. 

Posted by: @tosk

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Looks like its going to get harder to get that grandfathered EV credit.  https://www.yahoo.com/news/manchin-bill-delay-tax-credits-164827819.html

That bill will never pass.  I don't even see it getting a vote in the House.  If somehow it would miraculously pass both the House & Senate, Biden would not sign as it would only limit his ability to sell EVs.

Posted by: @bayoubob

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@ttrinchi obv the leasing company keeping the money is the worst case. 

if residual is % of purchase price (net of cap reduction) then you are better off with the original price and reducing payments by 7,500. If residual is unaffected by cap reduction then it is no different. 

Residual is % of MSRP so cap reduction (or negotiating down price for legacy dealers) does not affect residual price.

Good news, it looks like the One orders will be good for the credit with the transition rule.

I just noticed that the IRS has updated form 8936. Interestingly the form is updated, but the instructions are not. There is a draft instructions link, but I'm not sure how much will change. Here are the links:
2023 Form 8936
2022 Instructions
Draft 2022 Instructions

In the draft, the transition rule is now mentioned!
"Line 3
Enter 08/15/2022 if you qualify and elect to apply the transition rule discussed below. Transition rule. If you purchased, or entered into a written binding contract to purchase, a qualified plug-in electric drive motor vehicle after 2021 and before August 16, 2022, you may elect to treat such vehicle as having been placed in service on August 15, 2022, the day before the enactment date of the Inflation Reduction Act of 2022. Any additional election guidance that is issued will be added to these instructions at a later date."

So basically if you receive your Ocean One before April 18th, you can claim the $7500 tax credit.  If after that need, you need to file an extension or amendment.  The only two things needed for form 8936 are VIN and date vehicle placed into service.

@mtn-ranger I think you are on the right track.  I read the information that you attached, and the lucky few who have a One on order, MAY qualify.  I don't believe that any of the other reservation holders who converted to a "firm" order, with the $250 deposit will qualify.  The reason, in the IRA details, is that only firm orders, with a minimum deposit of 5% of the purchase price, will qualify, if the firm order was placed by 8/15/2022.

So, all of the manufacturers, including Fisker, who tried to seal the deal, and beat the deadline, by converting the small deposits to firm, for their customers, may have come up short.

It will be interesting to see if any of the early One deliveries will include the paperwork that claims this vehicle is eligible for the tax credit - which is mentioned in the instructions.  The first person to file, and claim the credit that gets accepted, will win a prize - and hope for the rest of us.

@paktechpaul I have done two $7500 EV tax credits in the last 12 years.  Neither car came paperwork regarding the tax credit.  You simply put the VIN and date of acquisition on Form 8936.

Yes, I feel the Extreme orders with $250 deposits may not qualify.