Featured Now non-NA built BEV can get a full tax credit on Lease.

Discussion in 'Prius, Hybrid, EV and Alt-Fuel News' started by Salamander_King, Jan 1, 2023.

  1. Salamander_King

    Salamander_King Senior Member

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    According to Reuters:
    U.S. Treasury says consumer leases can qualify for EV tax credits | Reuters

    This makes it possible to lease a non-North American-built BEV with a full tax credit applied to the lease cost. And, since it is a commercial tax credit, the battery sourcing restriction does not apply even after Treasury and IRS implement the guideline for the consumer credit. As of today, Jan 1, 2023, leased BEV (and PHEV?) does not have the final assembly and battery sourcing restrictions to be eligible for the credit.

    Good news for someone wanting to get into a BEV including Toyota bZ4X this year. Now, I have to keep my eyes open for a great lease deal as they once had several years ago on PHEVs. I remember seeing no money down $99/mo lease deal for Ioniq back when I was looking at Prius Prime for the first time. In fact, with this rule, Toyota's new 2023 Prius Prime with a slightly larger battery than before as well as Rav4Prime should qualify for the commercial tax credit for leasing.

    Here is another related article.
    Consumer Leases Will Now Qualify for EV Tax Credits
     
    #1 Salamander_King, Jan 1, 2023
    Last edited: Jan 1, 2023
  2. bisco

    bisco cookie crumbler

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    that's good news!
     
    #2 bisco, Jan 1, 2023
  3. Tideland Prius

    Tideland Prius Moderator of the North
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    Until March right?
     
    #3 Tideland Prius, Jan 1, 2023
  4. Salamander_King

    Salamander_King Senior Member

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    No, I don't think so. This is a totally separate recommendation from the US treasury dept regarding commercial tax credit eligibility. From what I read, the commercial portion of the US EV tax credit never had the battery sourcing requirement. And it seems the wording of the law about the North American final assembly requirement also does not apply to the commercial tax credit.

    The thing about "until March" is for the consumer tax credit which has the battery sourcing requirement. The US treasury and IRS need more time to finalize the guideline for implementing the battery sourcing requirement. So, until March when they will issue the guideline, there are not going to enforce the battery source requirement.
     
    #4 Salamander_King, Jan 1, 2023
    Tideland Prius likes this.
  5. bwilson4web

    bwilson4web BMW i3 and Model 3

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    With an expiration date toward a graduated scale, works for me. One IRA goal is USA-free trade, EV manufacturing.

    Of course as a TSLA stock holder, I would prefer no IRA distortion of the free market.

    Bob Wilson
     
    #5 bwilson4web, Jan 2, 2023
  6. bisco

    bisco cookie crumbler

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    usa manufacturing is pie in the sky donald trump schlock, pandering for votes.

    let's stick with promoting fossil fuel alternatives in all energy needs, and us manufacturing to the free market.
    we should be more concerned about where our food and medicines are produced
     
    #6 bisco, Jan 2, 2023
  7. Trollbait

    Trollbait It's a D&D thing

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    Well, Toyota is siding with Manchin in disagreement of this interpretation of the law. I agree with them as it is the same BS logic that let doctors, lawyers, and other white collar professionals apply a commercial truck tax credit to pay for their commuter Escalades.

    The credit limit for personal car sized vehicles is $7,500, but what the actual amount will be for a model is determined differently than the consumer vehicle portion, "Section 45W provides a credit for qualified commercial clean vehicles acquired after 2022 and prior to January 1, 2033 equal to the lesser of (i) 30% of the basis of such vehicle[2] or (ii) the incremental purchase price of such vehicle above the purchase price of a comparable vehicle powered solely by a gasoline or diesel internal combustion engine." Virtually, its $7500 for all. In the case of the Bolts, it will be limited to their price difference over the Trax.

    There is also limits on what leases can benefit from this, but I'm pretty sure the typical 2 to 3 year car lease does. Of course, this doesn't help the leassee if the lease company doesn't pass on the savings.
    https://electrek.co/2022/12/29/cars-assembled-outside-na-may-qualify-for-ev-tax-credit-per-new-irs-note/
    IRA Update: IRS Releases Reporting Requirements for EV Manufacturers and Sellers | Mintz

    edit: Electrek comments point out that this will allow 'buyers' of the EV to circumvent the EV price limits and buyer income requirements for the consumer credit. So fully loaded Hummer EVs will get it.
     
    #7 Trollbait, Jan 3, 2023
    Last edited: Jan 3, 2023
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