[Bill Tatun]

..they clearly list the transition provision. As a side note they have a list of 2022-2023 that will qualify on their own (subject to updating).

But looks good for both my One and Ultra orders….unless the 5% is real, then maybe just the ONE?

Credits for New Electric Vehicles Purchased in 2022 or Before | Internal Revenue Service

If you bought or leased a new, qualified plug-in electric vehicle (EV) in 2022 or before, you may be eligible for a clean vehicle tax credit up to $7,500 under IRC 30D.

www.irs.gov

 

[Blu Angel]

Wonderful News!
Thanks to the leadership of Fisker Inc.......
Spurred on by the EV fanatics of this here Oceanforums!

 

[Jay]

GREAT FIND! Thank you, @Bill Tatun!

..they clearly list the transition provision. As a side note they have a list of 2022-2023 that will qualify on their own (subject to updating).

But looks good for both my One and Ultra orders….unless the 5% is real, then maybe just the ONE?

Credits for New Electric Vehicles Purchased in 2022 or Before | Internal Revenue Service

If you bought or leased a new, qualified plug-in electric vehicle (EV) in 2022 or before, you may be eligible for a clean vehicle tax credit up to $7,500 under IRC 30D.

www.irs.gov

 

[HotIce]

Thanks Bill!!! Fantastic job, OceanForums! Proud to have led the charge on this initiative.

 

[BayouCityBob]

First, thank YOU @Bill Tatun for finding and sharing this!!!
Second is this: "The final assembly requirement does not apply before August 16, 2022." This is troubling because it does not say anything about the income cap requirements (which should also not apply). Will need to see, but makes me a bit nervous on that front.

Third is this:
"In general, a written contract is binding if it is enforceable under State law and does not limit damages to a specified amount (for example, by use of a liquidated damages provision or the forfeiture of a deposit). While the enforceability of a contract under State law is a facts-and-circumstances determination to be made under relevant State law, if a customer has made a significant non-refundable deposit or down payment, it is an indication of a binding contract. For tax purposes in general, a contract provision that limits damages to an amount equal to at least 5 percent of the total contract price is not treated as limiting damages to a specified amount. For example, if a customer has made a non-refundable deposit or down payment of 5 percent of the total contract price, it is an indication of a binding contract. A contract is binding even if subject to a condition, as long as the condition is not within the control of either party. A contract will continue to be binding if the parties make insubstantial changes in its terms and conditions."

The Fisker contract says something about Liquidated Damages. Could be a fly in the ointment. The ONE reservations meet the 5% rule so they are safe. The final wording on the Fisker contract may need a bit of massaging (aren't you glad they never sent you your signed copy?).

 

[HotIce]

First, thank YOU @Bill Tatun for finding and sharing this!!!
Second is this: "The final assembly requirement does not apply before August 16, 2022." This is troubling because it does not say anything about the income cap requirements (which should also not apply). Will need to see but makes me a bit nervous on that front.

Third is this:
"In general, a written contract is binding if it is enforceable under State law and does not limit damages to a specified amount (for example, by use of a liquidated damages provision or the forfeiture of a deposit). While the enforceability of a contract under State law is a facts-and-circumstances determination to be made under relevant State law, if a customer has made a significant non-refundable deposit or down payment, it is an indication of a binding contract. For tax purposes in general, a contract provision that limits damages to an amount equal to at least 5 percent of the total contract price is not treated as limiting damages to a specified amount. For example, if a customer has made a non-refundable deposit or down payment of 5 percent of the total contract price, it is an indication of a binding contract. A contract is binding even if subject to a condition, as long as the condition is not within the control of either party. A contract will continue to be binding if the parties make insubstantial changes in its terms and conditions."

The Fisker contract says something about Liquidated Damages. Could be a fly in the ointment. The ONE reservations meet the 5% rule so they are safe. The final wording on the Fisker contract may need a bit of massaging (aren't you glad they never sent you your signed copy?).

I just noticed that sentence as well and that could be a problem. Don't contracts have to be finalized before the bill goes into effect for it count?

 

[BayouCityBob]

I just noticed that sentence as well and that could be a problem. Don't contracts have to be finalized before the bill goes into effect for it count?

I'm just sayin' no one has an actual contract in their possession, now do they? Who remembers exactly what it said when you were clicking through the Ts & Cs? Maybe it did, maybe it did not. We will see what the final electronic copy they sent us actually says.

Okay, so it is available on the web. And the worrying sentence is this one: "In the event that you do not fulfill your agreement to purchase your Fisker Ocean, or we cancel this Order Agreement due to your breach, we will retain your reservation fee, deposit, and transportation fee paid to us as liquidated damages."

Could be a problem.

 

[Misanoblue]

Here is the commentary you want. Read the comments. https://www.reddit.com/r/electricvehicles/comments/wq5g64

 

[HotIce]

Here is the commentary you want. Read the comments. https://www.reddit.com/r/electricvehicles/comments/wq5g64

Nobody is talking about the liquidated damage's part.

[Edit]: Nevermind.

 

[HotIce]

So, there is a chance the Ocean still falls under the bill and gets the credit.

 

[appelton]

Seems like a good news. Now I am waiting for Fisker to do the other thing they promised which is "trade-in's" . I don't want to f*ck around with selling my current EV paying off the loan and then taking a new one.

 

[slipnslider]

So, there is a chance the Ocean still falls under the bill and gets the credit.

I read it the opposite - none of our deposits (Besides the One buyers who sent $5000) qualify as binding contracts so we're all screwed. Binding contract deposit needs to be 5% of the purchase price. I'm not a lawyer or tax professional but that's what it looks like to me.

 

[HotIce]

I read it the opposite - none of our deposits (Besides the One buyers who sent $5000) qualify as binding contracts so we're all screwed. Binding contract deposit needs to be 5% of the purchase price. I'm not a lawyer or tax professional but that's what it looks like to me.

That's not how I interpret it. Notice how the IRS uses wording like 'In General'. That's just one example.

 

[HotIce]

"Future Guidance To reduce carbon emissions and invest in the energy security of the United States, the Inflation Reduction Act of 2022 significantly changes the eligibility rules for tax credits available for clean vehicles beginning in 2023. The Internal Revenue Service and the Department of the Treasury will post information and request comments from the public on various existing and new tax credit incentives in the coming weeks and months. Please look for updates on IRS.gov and other announcements from the Administration. "

Sounds like OceanForums has more work to do boys and girls.

 

[nitepain]

I read it the opposite - none of our deposits (Besides the One buyers who sent $5000) qualify as binding contracts so we're all screwed. Binding contract deposit needs to be 5% of the purchase price. I'm not a lawyer or tax professional but that's what it looks like to me.

I read it like you with the exception that our state would have to consider our $250 deposit as a good enough binding contract. It's very much up to interpretation by each state. Imo, the IRS is just providing a general rule of thumb.

 

[appelton]

My biggest worry is what happens if my ULTRA order gets delayed from 2023 to 2024 which honestly I expect might happen. Would we still be eligible ?

 

[HotIce]

@BayouCityBob

What Is a Written Binding Contract?

"In general, a written contract is binding if it is enforceable under State law and does not limit damages to a specified amount (for example, by use of a liquidated damages provision or the forfeiture of a deposit). While the enforceability of a contract under State law is a facts-and-circumstances determination to be made under relevant State law, if a customer has made a significant non-refundable deposit or down payment, it is an indication of a binding contract. For tax purposes in general, a contract provision that limits damages to an amount equal to at least 5 percent of the total contract price is not treated as limiting damages to a specified amount. For example, if a customer has made a non-refundable deposit or down payment of 5 percent of the total contract price, it is an indication of a binding contract. A contract is binding even if subject to a condition, as long as the condition is not within the control of either party. A contract will continue to be binding if the parties make insubstantial changes in its terms and conditions. "

Last sentence.

 

[Misanoblue]

Haha that might be the out.

 

[Davelv]

None of Fisker’s Ocean orders are probably binding except for the One.

“Plug-In Electric Vehicle Credit IRC 30 and IRC 30D | Internal Revenue Service "if a customer has made a non-refundable deposit or down payment of 5% of the total contract price, it is an indication of a binding contract."

But Fisker says none of the $250 is refundable if you signed their “binding agreement”.

 

[HotIce]

None of Fisker’s Ocean orders are probably binding except for the One.

“Plug-In Electric Vehicle Credit IRC 30 and IRC 30D | Internal Revenue Service "if a customer has made a non-refundable deposit or down payment of 5% of the total contract price, it is an indication of a binding contract."

But Fisker says none of the $250 is refundable if you signed their “binding agreement”.

I take the first sentence to qualify the Ocean models. That "OR" in the middle to me means there are two options. Option: A non-refundable deposit. Option 2: down payment of 5% or more.