[jiggie]

Originally Posted by One Desi

Now I'm done with you as you're not reading the latest info.. 🙂

But lastly, I just hope that everyone does own research and not take this discussions to make decision. No one is expert here (and to be honest, neither tax professionals or dealers are on this subject as of now).

I've contacted BMW directly and they told me that they've no idea when MY23 X5 will appear on the revised list.

Originally Posted by One Desi

Now I'm done with you as you're not reading the latest info.. 🙂

But lastly, I just hope that everyone does own research and not take this discussions to make decision. No one is expert here (and to be honest, neither tax professionals or dealers are on this subject as of now).

I've contacted BMW directly and they told me that they've no idea when MY23 X5 will appear on the revised list.

You're wrong. Just stop.

Obviously a Model Year 2023 will span 2022 and 2023. Those purchased and taken delivery of in 2022 will be eligible, this isn't even worth arguing over.

Obviously there will be 2023 xDrive45e's that won't qualify, which are those acquired after the end of this year.

Did you just join this forum to argue with folks?

[TurtleBoy]

Originally Posted by bratk

MSRP and Income limits also don't apply to sales from August 16 to Dec 31 2022, correct? The law and IRS page makes it very clear - Only requirement for this period is NA assembly, everything else is same as pre August 16 (for cars sales between Aug and Dec 31 2022)?

That is correct.

[Jebryan]

Originally Posted by leightos

I am asking about MSRP because recently I was surprised what the NV government looked for (for) DMV road tax purposes. When I moved to NV I was told they would tax me for registration based on a percentage of MSRP. Well, I kept thinking it would be the $84445 at the bottom of my window sticker.
Well, when I got to the DMV they ran the VIN and came up with $65400 at the top. Hmm?
To me, that means the IRS will look at that number as well. Anyone agree, disagree ?
Another reason it fits, is what if, for me, I got a price $10k less than that bottom price, and they wanted to tax me at the DMV for the bottom price which I didn't pay (and is higher than I paid), I'd be a little pissed.
Anyway, just food for thought. (sorry for the rotated aspect, I didn't take it that way)
cheers

Do you only pay registration once? Interested how that works in years 2-XX. I imagine they're not going to tax you at your next renewal at $65,400 also, since the car is a a year older?

In my state of NC, they do our annual property tax on vehicles based on the market value. Historically in year 1, at my first registration, it's been whatever the dealer has reported that I bought the vehicle at. And each subsequent renewal is, again, whatever the market value is. Which in the last two years has resulted in my taxes going up each year while the used market/resale values have soared.

[TurtleBoy]

Originally Posted by Jebryan

Do you only pay registration once? Interested how that works in years 2-XX. I imagine they're not going to tax you at your next renewal at $65,400 also, since the car is a a year older?

In my state of NC, they do our annual property tax on vehicles based on the market value. Historically in year 1, at my first registration, it's been whatever the dealer has reported that I bought the vehicle at. And each subsequent renewal is, again, whatever the market value is. Which in the last two years has resulted in my taxes going up each year while the used market/resale values have soared.

In CO it is based on MSRP also but the percentage of it goes down each year. The first year my registration was over $1,600 but this past year I think it was down to $900 or so. I try not to remember. Lol

[Jebryan]

Originally Posted by TurtleBoy

In CO it is based on MSRP also but the percentage of it goes down each year. The first year my registration was over $1,600 but this past year I think it was down to $900 or so. I try not to remember. Lol

Holy chitttt. I won't complain about my $550 registration then, LOL.

[Retta]

Originally Posted by One Desi

True, that’s why I’m going to ignore you guys now!

Instead of ignoring it, you might want to look a bit more. It is not difficult for these misunderstandings to happen because of the seemingly inconsistent statements from the IRS.
The page that provides the link to the list you originally posted says a little further down that the list is incomplete and you are to check VIN to be sure. I hope that helps clear things up.
"To identify the manufacture (sic) location for a specific vehicle, please search the vehicle identification number (VIN) of the vehicle on the VIN Decoder website for the National Highway Traffic Safety Administration (NHTSA). The website, including instructions, can be found at VIN Decoder." -- https://www.irs.gov/businesses/plug-...30-and-irc-30d


I personally didn't use the decoder because I know where the vehicle I am buying is made. You can check for yours.

[Retta]

I just used the VIN decoder to see what info it had because I am the curious type.
This page refers to the govt agency pages with more complete info, including the BMW X5 on the list. On the decoder page, those sources are hyperlinked. They are "dehyperlinked" in the pull-quote I used.

"More Information
The information displayed through NHTSA’s VIN decoder is reported by the manufacturer. If you have further questions regarding this information, please contact the vehicle manufacturer. In addition, more information may be available on a label affixed to the vehicle. NHTSA’s Part 583 webpage provides more information about this label.

If you are using NHTSA's VIN decoder to get information regarding the U.S. Electric Vehicle Tax Credit, please refer to information released by the U.S. Department of Energy, U.S. Department of the Treasury and Internal Revenue Service, and these FAQs." --(https://vpic.nhtsa.dot.gov/decoder/Decoder)

[leightos]

Originally Posted by TurtleBoy

In CO it is based on MSRP also but the percentage of it goes down each year. The first year my registration was over $1,600 but this past year I think it was down to $900 or so. I try not to remember. Lol

Same here in NV. Some percentage and goes down yearly. Was in CA, and my reg was about $600, and here it was about double that. But that makes up for not having state taxes AND... they give me a $153 credit here for being a Veteran. Not a bad deal.

[TurtleBoy]

Originally Posted by leightos

Same here in NV. Some percentage and goes down yearly. Was in CA, and my reg was about $600, and here it was about double that. But that makes up for not having state taxes AND... they give me a $153 credit here for being a Veteran. Not a bad deal.

Similar here, the income and property taxes are reasonable.

[leightos]

found an article that discusses the MSRP and how it 'may' apply. I believe any 45e will be allowed (but then there's the AGI cap too).
Enjoy:
https://evadoption.com/proposed-chan...ss-than-80000/

[TurtleBoy]

Originally Posted by leightos

found an article that discusses the MSRP and how it 'may' apply. I believe any 45e will be allowed (but then there's the AGI cap too).
Enjoy:
https://evadoption.com/proposed-chan...ss-than-80000/

Given the wording, I'm leaning towards actual if it is strictly followed: "IN GENERAL.—No credit shall be allowed under subsection (a) for a vehicle with a manufacturer’s suggested retail price in excess of the applicable limitation." but of course "IN GENERAL" allows for some leeway in the IRS's interpretation. For ease of processing they will likely pick base for each model.

The 45e will not be eligible for the credit starting in January since it will fail to meet the battery requirements.

[leightos]

Originally Posted by TurtleBoy

Given the wording, I'm leaning towards actual if it is strictly followed: "IN GENERAL.—No credit shall be allowed under subsection (a) for a vehicle with a manufacturer’s suggested retail price in excess of the applicable limitation." but of course "IN GENERAL" allows for some leeway in the IRS's interpretation. For ease of processing they will likely pick base for each model.

The 45e will not be eligible for the credit starting in January since it will fail to meet the battery requirements.

TurtleBoy
Bold prediction from me - Congress will refine these battery reqs next year because sales will slump on many models. I'm just betting on the car lobby in this country, and that a new group will be in charge next year.

[TurtleBoy]

Originally Posted by leightos

TurtleBoy
Bold prediction from me - Congress will refine these battery reqs next year because sales will slump on many models. I'm just betting on the car lobby in this country, and that a new group will be in charge next year.

You are right, that is bold. Sales will slump a bit due to this but mostly it will be the effects of the economy in my opinion.

[IxnayEslaTay]

Originally Posted by gqxxflip

Correct. Pretty much what TB has said all along. Bill being signed into law today would just require vehicles be made in NA to qualify for tax credit.

Next up is whenever guidance is issued by the Secretary or until 12/31/22 whichever comes first for battery requirements to take effect (hoping it’s 12/31/22)

After that 1/1/23 is when income limits, price caps, and the rest take effect unless you’re one of those who’ve put down a minimum of 5% as non-refundable deposit to make a binding contract prior to bill being signed today then you can partake in transitionary rule.

Wait. Income limits aren't in effect this year?

[TurtleBoy]

Originally Posted by IxnayEslaTay

Wait. Income limits aren't in effect this year?

No, the only thing that was changed with the signing is that they must be made in NA.

[shadab.ashraf56]

80000 Limit for the tax credit is on total cost of purchase including all option or it is the MSRP of 65700 for the 45e ?

[leightos]

One note, I talked to local dealer today about a binding contract. Since my 45e is dead and in the shop, and I'll get to order a new one (see my thread in Pricing and Ordering forum), I went in today to talk process.
I mentioned to the CA about refundable and non-refundable (nr) deposits. He and I chatted about my goal of getting the tax credit and ordering this late may mean I don't get the car before year's end. He said it was totally possible to put in a refundable deposit to get the car into production, and when I get the VIN, I can put down a nr deposit and get a binding contract. I'm totally down w/ that. He said he's done binding contracts before with a nr deposit.

[leightos]

Originally Posted by shadab.ashraf56

80000 Limit for the tax credit is on total cost of purchase including all option or it is the MSRP of 65700 for the 45e ?

see our posts above. I believe it will be MSRP of 65700, as that is what the State of Nevada used when I re-registered my car here - it's on my car registration. I mean, do you really think they can keep track of each and every cost of each and every transaction? (car transactions arent necessarily public info, but the MSRP is) I think they'll just keep track of basic MSRP for a model.

[brad_saggy]

Originally Posted by leightos

One note, I talked to local dealer today about a binding contract. Since my 45e is dead and in the shop, and I'll get to order a new one (see my thread in Pricing and Ordering forum), I went in today to talk process.
I mentioned to the CA about refundable and non-refundable (nr) deposits. He and I chatted about my goal of getting the tax credit and ordering this late may mean I don't get the car before year's end. He said it was totally possible to put in a refundable deposit to get the car into production, and when I get the VIN, I can put down a nr deposit and get a binding contract. I'm totally down w/ that. He said he's done binding contracts before with a nr deposit.

Isn't the binding contract only applicable to sales made before Aug 16? For the Aug 17 - end of year period the car has to be put in service during that period. There is no mention of signing a binding contract during this period and taking delivery in 2023 or later to qualify for the same credits.

[TurtleBoy]

Originally Posted by shadab.ashraf56

80000 Limit for the tax credit is on total cost of purchase including all option or it is the MSRP of 65700 for the 45e ?

It has not been clarified yet what the MSRP pertains to, that will be coming in future guidance.

[TurtleBoy]

Originally Posted by leightos

One note, I talked to local dealer today about a binding contract. Since my 45e is dead and in the shop, and I'll get to order a new one (see my thread in Pricing and Ordering forum), I went in today to talk process.
I mentioned to the CA about refundable and non-refundable (nr) deposits. He and I chatted about my goal of getting the tax credit and ordering this late may mean I don't get the car before year's end. He said it was totally possible to put in a refundable deposit to get the car into production, and when I get the VIN, I can put down a nr deposit and get a binding contract. I'm totally down w/ that. He said he's done binding contracts before with a nr deposit.

As mentioned, binding contacts have no meaning at this point in regards to the credit. They had to be done prior to the signing of the bill into law in order to take advantage of the Transition rule.

[RickObe]

Originally Posted by leightos

One note, I talked to local dealer today about a binding contract. Since my 45e is dead and in the shop, and I'll get to order a new one (see my thread in Pricing and Ordering forum), I went in today to talk process.
I mentioned to the CA about refundable and non-refundable (nr) deposits. He and I chatted about my goal of getting the tax credit and ordering this late may mean I don't get the car before year's end. He said it was totally possible to put in a refundable deposit to get the car into production, and when I get the VIN, I can put down a nr deposit and get a binding contract. I'm totally down w/ that. He said he's done binding contracts before with a nr deposit.

Your binding contract would have to be dated, and nonrefundable deposit made, before August 16, 2022. Unless you can backdate things to make it appear so, the binding contract isn't going to help if the car is put in service after 12/31/22.