Mag6240 Posted May 30, 2023 Share Posted May 30, 2023 Surprised our resident EV expert hasn't read this, or maybe he has and I haven't seen it on here. I also find it funny how they have circumvented the initial purpose of the bill, to address the lack of domestic production. The easiest way to get a $7,500 tax credit for an electric vehicle? Consider leasing. - KSTP.com 5 Eyewitness News Quote Link to comment Share on other sites More sharing options...
Gold Member BOHICA Posted May 30, 2023 Gold Member Share Posted May 30, 2023 (edited) 15 minutes ago, Mag6240 said: Surprised our resident EV expert hasn't read this, or maybe he has and I haven't seen it on here. I also find it funny how they have circumvented the initial purpose of the bill, to address the lack of domestic production. The easiest way to get a $7,500 tax credit for an electric vehicle? Consider leasing. - KSTP.com 5 Eyewitness News Yep.. really old news. No MSRP or income caps with leasing either. Lucid is leasing most of there autos and offering really early buyouts to customers. Edited May 30, 2023 by BOHICA Quote Link to comment Share on other sites More sharing options...
Mag6240 Posted May 30, 2023 Author Share Posted May 30, 2023 (edited) 16 minutes ago, BOHICA said: Yep.. really old news. No MSRP or income caps with leasing either. Lucid is leasing most of there autos and offering really early buyouts to customers. Um, that's not what the article says. And it says the dealer doesn't have to tell you that's available... Edited May 30, 2023 by Mag6240 Quote Link to comment Share on other sites More sharing options...
Doug Posted May 30, 2023 Share Posted May 30, 2023 30 minutes ago, Mag6240 said: Surprised our resident EV expert hasn't read this, or maybe he has and I haven't seen it on here. I also find it funny how they have circumvented the initial purpose of the bill, to address the lack of domestic production. The easiest way to get a $7,500 tax credit for an electric vehicle? Consider leasing. - KSTP.com 5 Eyewitness News Maybe it's a cloudy windless day for him and his batteries are dead. 4 Quote Link to comment Share on other sites More sharing options...
Gold Member BOHICA Posted May 30, 2023 Gold Member Share Posted May 30, 2023 21 minutes ago, Mag6240 said: Um, that's not what the article says. And it says the dealer doesn't have to tell you that's available... Get you info from knowledgeable sources. Msrp and Income limits don’t apply to leasing. https://electrek.co/2023/04/05/how-to-bypass-nearly-every-restriction-of-the-ev-tax-credit-by-leasing/ The reason for this is due to two different sections of the law: 30D and 45W. Section 30D deals with individual purchase credits, and 45W deals with commercial credits. One is meant to stimulate personal vehicle purchases, while the other is intended to stimulate large commercial EVs like buses and dump trucks but also smaller vehicles for purchase or lease in commercial fleets. All of the aforementioned restrictions are only present in section 30D of the law, not section 45W. Commercial vehicles can be over 80k MSRP, they can be assembled outside of NA, their battery sourcing isn’t as controlled, and buyers can make more than $150k income. The “loophole” comes in due to the IRS’ December interpretation of how leases are categorized. IRS states in their fact sheet (topic G, Q5) that businesses that lease vehicles are allowed to claim the commercial EV tax credit for each leased vehicle. This means that as long as the vehicle fulfills the relatively minor requirements of 45W (and is a “bona fide lease” as laid out in Q6 of the same fact sheet), then a lessor (i.e., the manufacturer’s leasing arm) can file for the $7,500 EV tax credit. This applies regardless of whether the lessee is a business or an individual. Lucid offers the tax credit right on their website…. They call it Capital cost reduction. The leading company is a business and claims the credit and then can chose to pass i on. Assumes a vehicle price of $180,650. Offer valid only on select Grand Touring Performance configurations that are currently available. Expires 6-30-23. Security deposit waived. $12,994 due at signing. Lease offer includes $7,500 capital cost reduction and excludes tax, title, license, and other fees. https://lucidmotors.com/stories/lucid-air-lease-loan-offers Quote Link to comment Share on other sites More sharing options...
Gold Member BOHICA Posted May 30, 2023 Gold Member Share Posted May 30, 2023 24 minutes ago, Doug said: Maybe it's a cloudy windless day for him and his batteries are dead. Nice and sunny. Car is full on electrons and not even plugged in! Quote Link to comment Share on other sites More sharing options...
toslow Posted May 30, 2023 Share Posted May 30, 2023 2 minutes ago, BOHICA said: Nice and sunny. Car is full on electrons and not even plugged in! Should get you 100k or more on a round trip Quote Link to comment Share on other sites More sharing options...
Gold Member BOHICA Posted May 30, 2023 Gold Member Share Posted May 30, 2023 Just now, toslow said: Should get you 100k or more on a round trip Todays energy thus far is good for around 130 miles from the sun. Still lots of day light left.. made enough this month so far for well over 10,000 miles of driving. Quote Link to comment Share on other sites More sharing options...
Mag6240 Posted May 30, 2023 Author Share Posted May 30, 2023 40 minutes ago, BOHICA said: Get you info from knowledgeable sources. Msrp and Income limits don’t apply to leasing. https://electrek.co/2023/04/05/how-to-bypass-nearly-every-restriction-of-the-ev-tax-credit-by-leasing/ The reason for this is due to two different sections of the law: 30D and 45W. Section 30D deals with individual purchase credits, and 45W deals with commercial credits. One is meant to stimulate personal vehicle purchases, while the other is intended to stimulate large commercial EVs like buses and dump trucks but also smaller vehicles for purchase or lease in commercial fleets. All of the aforementioned restrictions are only present in section 30D of the law, not section 45W. Commercial vehicles can be over 80k MSRP, they can be assembled outside of NA, their battery sourcing isn’t as controlled, and buyers can make more than $150k income. The “loophole” comes in due to the IRS’ December interpretation of how leases are categorized. IRS states in their fact sheet (topic G, Q5) that businesses that lease vehicles are allowed to claim the commercial EV tax credit for each leased vehicle. This means that as long as the vehicle fulfills the relatively minor requirements of 45W (and is a “bona fide lease” as laid out in Q6 of the same fact sheet), then a lessor (i.e., the manufacturer’s leasing arm) can file for the $7,500 EV tax credit. This applies regardless of whether the lessee is a business or an individual. Lucid offers the tax credit right on their website…. They call it Capital cost reduction. The leading company is a business and claims the credit and then can chose to pass i on. Assumes a vehicle price of $180,650. Offer valid only on select Grand Touring Performance configurations that are currently available. Expires 6-30-23. Security deposit waived. $12,994 due at signing. Lease offer includes $7,500 capital cost reduction and excludes tax, title, license, and other fees. https://lucidmotors.com/stories/lucid-air-lease-loan-offers Well shit, then everyone, regardless of income can get $7500 off, if the manufacturer, or lessor decides to pass on that savings. I wonder if they worded something into the Inflation Reduction Act that distinguishes between foreign vs. domestic - Lucid being "American" made would probably be able to bypass that. Just asking... Quote Link to comment Share on other sites More sharing options...
Doug Posted May 30, 2023 Share Posted May 30, 2023 (edited) Has to be the life of a party Edited May 30, 2023 by Doug 1 Quote Link to comment Share on other sites More sharing options...
Gold Member BOHICA Posted May 30, 2023 Gold Member Share Posted May 30, 2023 (edited) 42 minutes ago, Mag6240 said: Well shit, then everyone, regardless of income can get $7500 off, if the manufacturer, or lessor decides to pass on that savings. I wonder if they worded something into the Inflation Reduction Act that distinguishes between foreign vs. domestic - Lucid being "American" made would probably be able to bypass that. Just asking... Nope. All EV’s…. If you lease a Rimac the leasing company gets the credit. They can apply it to you or not…. It’s their tax credit/business expense. Edited May 30, 2023 by BOHICA 1 Quote Link to comment Share on other sites More sharing options...
Deephaven Posted May 31, 2023 Share Posted May 31, 2023 It's a fucking waste of tax money. Irresponsible as shit. Quote Link to comment Share on other sites More sharing options...
Doug Posted May 31, 2023 Share Posted May 31, 2023 Quote Link to comment Share on other sites More sharing options...
Gold Member BOHICA Posted May 31, 2023 Gold Member Share Posted May 31, 2023 40 minutes ago, Deephaven said: It's a fucking waste of tax money. Irresponsible as shit. Business write offs and business tax deduction yes! Something we can agree on! Quote Link to comment Share on other sites More sharing options...
Doug Posted May 31, 2023 Share Posted May 31, 2023 Quote Link to comment Share on other sites More sharing options...
Deephaven Posted May 31, 2023 Share Posted May 31, 2023 Glad you agree we should stop subsidizing the ev nonsense. Quote Link to comment Share on other sites More sharing options...
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