Ask Terry Questions Credits for New Electric Vehicles

Credits for New Electric Vehicles

By Terry Savage on December 26, 2023 | Wild Card

In June of 2022, I entered into a binding contract to purchase a new Nissan Ariya electric SUV. On August 16th, the Inflation Reduction Act went into effect. The new rules now disqualified the Nissan Ariya due to it being manufactured and assembled in Japan. In all my research and spending countless hours scouring the IRS site, I am unable to find a definitive answer to the question “Does my purchase qualify for the $7500.00 tax credit due to the fact that I made a purchase contract prior to the August 26,2022 act, and the purchased vehicle was not manufactured and taken delivery of until January 30, 2023?” On multiple pages, the IRS answer to that question is:
“If you purchased or entered into a binding contract to purchase a new clean vehicle after December 31,2021 and before August 16,2022, but took possession on or after August 16, 2022, you may claim the credit that applied on August 15, 2022, the day before the IRA was enacted. To do so, you are required to claim the credit on a tax return for tax year 2022. Depending on the date the vehicle is placed in service, you may claim the credit on an original, superseding, or amended return for tax year 2022.
Taxpayers may not claim the credit before they take possession of the vehicle. etc.etc.etc.”

I made this purchase on the premise that I would receive a $7500.00 tax credit and feel as if the rug has been pulled out from under me. Is there any hope that I still qualify? Thank you for any guidance you can provide.

Terry Says

Wow, that’s way above my tax pay-grade! I suggest you use TurboTax and ask their experts how to handle this situation. They know all this stuff! Looks like you might need to amend your 2022 return, and they could help with that too!
Please do post again, and let me know how this works out!



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