Does this tax credit loophole apply to our $50 deposit

[KevinRS]

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!

There is just little time left for slate to work that out and beat the IRS deadline, especially since they haven't solidified pricing, date, or warrantee. They wouldn't want to enter the contract on their side and end up having to break it either. If they announced a contract availability Tuesday, assuming they've had legal working on it since the IRS announced the rule, it would still probably take a few weeks at least to process the thousands of applications for it, any delays and they risk going past the deadline.

 

[Mad Mac]

$7,500 is a huge incentive.
It needs to happen.

 

[KevinRS]

$7,500 is a huge incentive.
It needs to happen.

Part of the problem with that $7500 is, for the people who needed it most, it wasn't available.
Assuming you have no deductions or retirement contributions at all to reduce your income, so you only have the standard deduction for 1 person, You aren't going to have $7500 in tax liability unless you make over $75k a year. If married filing jointly, the amount goes up some because the standard deduction goes up. Have an IRA, that reduces your taxable income, so income level has to be higher to get the full $7500.
This is part of why most EVs were targeting the luxury market.
But one loophole which probably shouldn't exist is leasing, and transferring the credit to the dealer. That loophole lets people over the income limits of $150k for single or $300k for joint filing benefit anyway.

 

[cadblu]

But one loophole which probably shouldn't exist is leasing, and transferring the credit to the dealer. That loophole lets people over the income limits of $150k for single or $300k for joint filing benefit anyway.

Slate currently doesn't offer leasing as a purchase option but may do so in the future.

It's disappointing and a bit of a surprise that Slate is promoting their brand for fleet vehicles targeting the service industry wherein they are typically financed with a leasing arrangement. Personally, I consider this a huge oversight. If I owned a small business needing a fleet of reliable, low maintenance leased vehicles, Slate would be my first choice.

 

[Mad Mac]

Dealers do not lease cars themselves but instead sell them to leasing companies. The leasing company, or lessor, is the actual owner of the vehicle during the lease term, while the dealership acts as an intermediary.

There should be no impediment
to leasing a Slate.

 

[Mad Mac]

The tax credit is cruel.
It favors the wealthy
who have no need for it
and is of no help
to lower income people
who need it the most.
It amounts to a regressive tax.

Obama's Cash for Clunkers credit
was even more cruel
as it also removed perfectly good
affordable used cars
from the market.

 

[E90400K]

Part of the problem with that $7500 is, for the people who needed it most, it wasn't available.
Assuming you have no deductions or retirement contributions at all to reduce your income, so you only have the standard deduction for 1 person, You aren't going to have $7500 in tax liability unless you make over $75k a year. If married filing jointly, the amount goes up some because the standard deduction goes up. Have an IRA, that reduces your taxable income, so income level has to be higher to get the full $7500.
This is part of why most EVs were targeting the luxury market.
But one loophole which probably shouldn't exist is leasing, and transferring the credit to the dealer. That loophole lets people over the income limits of $150k for single or $300k for joint filing benefit anyway.

If you choose the option to transfer the credit to the selling dealership, you get the entire tax credit applied to the vehicle purchase price as a price reduction regardless if you have a tax liability of $7,500 (or whatever amount the car qualifies for). You still however, must meet the AGI income thresholds.

The requirements changed under the IRA of 2022.