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And what if one were to take delivery today, in December of 2022? With a pre-8/16/22 binding contract in hand—$3,750 or $7,500?
There’s been a lot of speculation—and a great lack of clarity—about how exactly the tax credit phase-out for Toyota [reducing maximum tax credit for their EV’s to $3,750 as of 10/1/22] would actually apply to BZ4X’s with binding contracts dated prior to 8/16, but with actual delivery only occurring now, or in the coming weeks.
Despite the new legislation/"Inflation Reduction Act" EV stipulations, it seems that under the IRS’s “transition rule” (Plug-in Electric Drive Vehicle Credit Section 30D | Internal Revenue Service), for tax purposes, the rules that will apply to those who already had binding contracts on undelivered but qualifying vehicles will be as if the car had been sold prior to enactment of the bill (on August 16th).
If this is their full interpretation, then the entire $7,500 credit is surely on the table, as the first tax credit phase-out for Toyota had not concluded at that time, with the phase-out having actually concluded on 10/1/22:
www.irs.gov
Although in the above link, the IRS’s use of the word ‘acquired’ [date] on their qualifying vehicles muddles things; what does 'acquired' actually mean within this context, and in the broader context of the transition rule?
Hence the consideration that if for the purposes of the phase-out only, the IRS decides to go with the actual physical acquisition date of the vehicle, then the tax credit phase-out for Toyota would indeed apply (and for only a couple of months a for only a few very unlucky people). That said, it would be very illogical if the IRS followed their ‘transition rule’ in this instance for the North American assembly requirements in the bill, but ignored it in the case of the phase-out rules (of course complicated by the fact that there is an awkward 4-month gap in the implementation of the new phase-out rules).
However, if they did in fact interpret the two aspects of rebate qualification as mutually exclusive, then would taking delivery after 12/31/2022 be the safest bet—assuming a BZ4X under pre-8/16 binding contract—since it would result in a delivery/purchase/'acquisition' date at a time when all phase-outs had been reset (i.e., manufacturer production phase-outs are to be eliminated/reset under the new legislation, commencing 1/1/2023).
Does anyone have any current insights?
There’s been a lot of speculation—and a great lack of clarity—about how exactly the tax credit phase-out for Toyota [reducing maximum tax credit for their EV’s to $3,750 as of 10/1/22] would actually apply to BZ4X’s with binding contracts dated prior to 8/16, but with actual delivery only occurring now, or in the coming weeks.
Despite the new legislation/"Inflation Reduction Act" EV stipulations, it seems that under the IRS’s “transition rule” (Plug-in Electric Drive Vehicle Credit Section 30D | Internal Revenue Service), for tax purposes, the rules that will apply to those who already had binding contracts on undelivered but qualifying vehicles will be as if the car had been sold prior to enactment of the bill (on August 16th).
If this is their full interpretation, then the entire $7,500 credit is surely on the table, as the first tax credit phase-out for Toyota had not concluded at that time, with the phase-out having actually concluded on 10/1/22:
Manufacturers and Models for New Qualified Clean Vehicles Purchased in 2023 or After | Internal Revenue Service
List of vehicles that are eligible for a 30D clean vehicle tax credit and the amount of the qualifying credit, if purchased between 2023 and 2032.
Although in the above link, the IRS’s use of the word ‘acquired’ [date] on their qualifying vehicles muddles things; what does 'acquired' actually mean within this context, and in the broader context of the transition rule?
Hence the consideration that if for the purposes of the phase-out only, the IRS decides to go with the actual physical acquisition date of the vehicle, then the tax credit phase-out for Toyota would indeed apply (and for only a couple of months a for only a few very unlucky people). That said, it would be very illogical if the IRS followed their ‘transition rule’ in this instance for the North American assembly requirements in the bill, but ignored it in the case of the phase-out rules (of course complicated by the fact that there is an awkward 4-month gap in the implementation of the new phase-out rules).
However, if they did in fact interpret the two aspects of rebate qualification as mutually exclusive, then would taking delivery after 12/31/2022 be the safest bet—assuming a BZ4X under pre-8/16 binding contract—since it would result in a delivery/purchase/'acquisition' date at a time when all phase-outs had been reset (i.e., manufacturer production phase-outs are to be eliminated/reset under the new legislation, commencing 1/1/2023).
Does anyone have any current insights?
. Since I live in CA, I got $2K check from Clean Vehicle Rebate Project, which was quick and easy, and now waiting for a decal sticker from DMV. I am not sure if there are any bz4x final assembled in the USA. Aren’t they all final assembled in Japan?/cloudfront-us-east-2.images.arcpublishing.com/reuters/JLQM4KGFSZIGXIWB3CPOCSCZOU.jpg)
