Does this tax credit loophole apply to our $50 deposit

[Mad Mac]

If it applies to our deposit
this is great news.
Tax Credit Loophole

 

[cadblu]

Nice try. The short answer is NO… a deposit is not a signed contract.

According to the IRS, a customer just needs to have a binding contract in place and at least one payment made before September 30 to obtain the tax credit.

 

[Mad Mac]

That sounds reasonable,
but Slate is bound to us
assuming they stay in business,
and we did put down $50
in earnest money.
A contract of sorts
has been created digitally.
Which is even better
than an oral contract.

If a written contract is all it takes
Slate should jump on this
and mail us depositors contracts to sign
like they mailed those sketches.

 

[cadblu]

So your goal is to get the $50 refunded by the government? Not bloody likely.

 

[Mad Mac]

To quote the Warden
in Cool Hand Luke,
"What we've got here
is a failure to communicate."

 

[sodamo]

If it applies to our deposit
this is great news.
Tax Credit Loophole

While I find this highly doubtful it sure would be an interesting twist. 5 or 10% down and send me a contract that allows flexibility of final product. I’m gonna ask anyway.

 

[atreis]

Experience from the last round of this: I put a deposit in on a Nissan Ariya in '21. When the IRA was announced in '22, Nissan sent out a letter saying that the deposit didn't constitute a binding contract, and offered to let those who had put down deposits sign a binding contract in order to be grandfathered into the old pre-IRA rules for the tax credits (allowing the Japan-made Ariya to still qualify).

I signed their binding contract before the IRA went into effect in '22, which included a "written", signed, contract that Nissan said needed to be printed out and stored with tax paperwork. They also kept contract confirmation on their side so that they could make it available to the government upon request as proof.

Then I was able to claim the credit after taking delivery of my Ariya in January of '23.

Slate would need to do something similar. It's possible, but so far they haven't, and no, the deposit isn't enough to be considered a binding contract. FWIW, what constitutes a "binding contract" varies some from one state to another. In order to avoid this issue, Nissan's binding contract included language that caused the laws of the company's US home state of Tennessee to apply regardless of the state of residence of the person signing.

 

[sodamo]

Experience from the last round of this: I put a deposit in on a Nissan Ariya in '21. When the IRA was announced in '22, Nissan sent out a letter saying that the deposit didn't constitute a binding contract, and offered to let those who had put down deposits sign a binding contract in order to be grandfathered into the old pre-IRA rules for the tax credits (allowing the Japan-made Ariya to still qualify).

I signed their binding contract before the IRA went into effect in '22, which included a "written", signed, contract that Nissan said needed to be printed out and stored with tax paperwork. They also kept contract confirmation on their side so that they could make it available to the government upon request as proof.

Then I was able to claim the credit after taking delivery of my Ariya in January of '23.

Slate would need to do something similar. It's possible, but so far they haven't, and no, the deposit isn't enough to be considered a binding contract. FWIW, what constitutes a "binding contract" varies some from one state to another. In order to avoid this issue, Nissan's binding contract included language that caused the laws of the company's US home state of Tennessee to apply regardless of the state of residence of the person signing.

The binding contract is important. Have to wonder if the is not a way this could be financially beneficial for Slate? I realize it’s not a lot of money directly for Slate, but the contract have potential value I would think.

Slate could do a simple, one size fits all contract for a Blank Slate with open option clause. even 5% non refundable could be attractive.

 

[sodamo]

Short lived hope

Hi David, Great question, at this time, Slate won’t be taking advanced orders to qualify for the expiring Federal EV Incentives. If anything changes, we’ll be sure to keep you updated. Thanks again for reaching out! Cheers✨ Kathryn || Slate Agent Team

 

[Mad Mac]

That I do not understand.
Why wouldn't they?

 

[sodamo]

That I do not understand.
Why wouldn't they?

Maybe just haven’t given it proper consideration yet?

 

[Imhotep]

Maybe just haven’t given it proper consideration yet?

Doesn’t the credit expire tomorrow?

 

[sodamo]

Doesn’t the credit expire tomorrow?

9/30?

 

[KevinRS]

The reservations we have paid $50 for are explicitly refundable non-binding.
There is no guarantee on Slate giving us the truck, and we are not committed to buying. Slate has made no commitment on delivery date, or even price.
All of that would have to change for slate to offer us binding contracts, and I don't think slate will be ready to do that until next year some time. Even if they were to offer to convert the $50 reservation to a $50 non-refundable binding deposit, most wouldn't want to commit contractually over a year out, and the IRS could decide to change the rules anyway.

 

[sodamo]

The reservations we have paid $50 for are explicitly refundable non-binding.
There is no guarantee on Slate giving us the truck, and we are not committed to buying. Slate has made no commitment on delivery date, or even price.
All of that would have to change for slate to offer us binding contracts, and I don't think slate will be ready to do that until next year some time. Even if they were to offer to convert the $50 reservation to a $50 non-refundable binding deposit, most wouldn't want to commit contractually over a year out, and the IRS could decide to change the rules anyway.

Hopefully people would understand the difference between a refundable$50 reservation and a binding contract.

But I do disagree as for people’s willingness to do so. I think there would be a surprising number willing to do so. Yup, I’m one. I have a friend who did so 8 months out on a Lightning, another on a Kubota tractor with no promise date. When I bought my Tundra we inquired about a Sequoia and was told it would likely be a year out unless we just accepted what came in. So while we maybe subject to our island conditions, I suspect it isn’t totally unique. Contract my Slate for 11/26 and I’m on it. Sure, the IRS can change the rules, but life’s gamble anyway and that could be addressed in the contract. Think positive!