[bavarianride]

Originally Posted by razor488

Seems like legal council for these big car companies would have been all over the definition of a binding contract before August 16th hit since it’s in the code.

Do note that IRA aligns with 2013-19 and 2013-29, which in turn aligns to Section 1603 clean energy stuff. So basically this bill removes the EV freebies, and makes the new credits aligned to 5% safe harbor as specified in 2013-29 and such.

In a way, it is a tax hike to fund QT.

[grueber]

Originally Posted by razor488

Seems like legal council for these big car companies would have been all over the definition of a binding contract before August 16th hit since it’s in the code.

It was not clear until the IRS clarified the day the legislation passed. Rivian tried and they didn't correctly foresee the 5% requirement:

"If you'd like to sign a binding contract for your R1T or R1S purchase, click "Review and Accept" below. Signing the contract will make $100 of your existing $1,000 deposit non-refundable and help you to maintain eligibility to apply for the $7,500 tax credit under its current requirements."

I think the way the legislation was released and how the IRS came out is utter BS.

[bavarianride]

Originally Posted by grueber

It was not clear until the IRS clarified the day the legislation passed. Rivian tried and they didn't correctly foresee the 5% requirement:....

Yeah 5% is safe harbor per Section 1603.

90% of deposit being refundable also is problematic, at best IRS can rule that the 10% non-refundable needs to cross 5%(very hard to achieve), in practice IRS can just rule that any amount of refundable deposit already violates CFR § 1.168(k)-1(b)(4)(ii)(A).

Fisker's $5000 non-refundable downpayment (assuming larger than 5%) on a factory direct order likely should be OK.