Senate Bill Deal Would Expand EV Tax Credits, But No Help For i4 / iX

TurtleBoy · 08-11-2022, 08:20 PM

Quote:

Originally Posted by OUGrad05

Oh the timing...I'm supposed to be up for a build right after Labor Day.

Hopefully you will be able to get something that you consider to be a binding contract. A bill of sale/purchase agreement/purchase order and a non-refundable deposit will likely satisfy the requirements. A Vehicle Inquiry with the deposit would probably do it also.

OUGrad05 · 08-12-2022, 06:20 AM

Quote:

Originally Posted by TurtleBoy

Quote:

Originally Posted by OUGrad05

Oh the timing...I'm supposed to be up for a build right after Labor Day.

Hopefully you will be able to get something that you consider to be a binding contract. A bill of sale/purchase agreement/purchase order and a non-refundable deposit will likely satisfy the requirements. A Vehicle Inquiry with the deposit would probably do it also.

I have given a deposit. I did that back in May or June. I don't think a deposit and prelim signed spec sheet are enough.

techwhiz1 · 08-12-2022, 08:42 AM

I have a term sheet and VIR which is all you are likely to get in a bunch of states.

If audited I will present my documents.
The text thread that showed I attempted with the dealer to obtain a binding agréent.
Statements from the dealer that they cannot provide the documents.
A copy of the law that prohibits binding agreements.

I will then argue the equal protection clause. Umder the constitution taxing people differently under federal law is not allowed. Obtaining what the law in California allows should be enough.

I'm not a lawyer or tax professional but I do know that you can't require what is impossible to obtain.

TurtleBoy · 08-12-2022, 09:09 AM

Quote:

Originally Posted by OUGrad05

I have given a deposit. I did that back in May or June. I don't think a deposit and prelim signed spec sheet are enough.

You have to make that determination but in many's opinion that would suffice.

heatmizr · 08-12-2022, 12:03 PM

Rivian and Lucid are being very proactive:
InsideEVs : Rivian, Lucid Tell Reservation Holders To Sign Binding Agreements.
https://insideevs.com/news/603726/ri...ing-agreement/

I emailed my Sales guy at the BMW dealership and asked what their take was and what they could provide.
No response yet.

techwhiz1 · 08-12-2022, 12:34 PM

Quote:

Originally Posted by heatmizr

Rivian and Lucid are being very proactive:
InsideEVs : Rivian, Lucid Tell Reservation Holders To Sign Binding Agreements.
https://insideevs.com/news/603726/rivian-lucid-tell-reservation-holders-sign-binding-agreement/

I emailed my Sales guy at the BMW dealership and asked what their take was and what they could provide.
No response yet.

What state are you located?

pjbm4 · 08-12-2022, 01:32 PM

Quote:

Originally Posted by TurtleBoy

I thought CA law prohibits non-refundable deposits on vehicles. Or does it just say they are refundable unless otherwise noted?

I placed a non-refundable deposit for my i4 in CA but I received a slot from an order cancellation. It was signed by the sales manager and I so hopefully that will work as a binding contract.

TurtleBoy · 08-12-2022, 01:45 PM

Quote:

Originally Posted by pjbm4

I placed a non-refundable deposit for my i4 in CA but I received a slot from an order cancellation. It was signed by the sales manager and I so hopefully that will work as a binding contract.

That should work but deposits are not allowed to be non-refundable in CA as far as I know. They have to refund the deposit when asked by the customer.

techwhiz1 · 08-12-2022, 03:50 PM

Quote:

Originally Posted by pjbm4

I placed a non-refundable deposit for my i4 in CA but I received a slot from an order cancellation. It was signed by the sales manager and I so hopefully that will work as a binding contract.

That sales manager just violated California law. That deposit is expressly refundable.

I talked to the finance manager at my dealership yesterday and he indicated that in California there is no such thing as a binding contract until you sign a purchase agreement, take delivery and finally drive off the lot.

I also ready the CVC statuteyself.

At any point prior to driving off the lot you can ask and get a full refund.

That deposit is refundable in California because an illegal contract is no contract at all.

tracythorne · 08-12-2022, 03:54 PM

Just got back from dealership in Richmond, VA. I have a 330e on order for the past three months with no allocation yet.

Fortunately, they were willing to do the paperwork to give me a signed contract today - it's even time stamped in case the bill gets enacted sometime today.

Who knows if it will work. Hopefully, the car comes in before December 31, and if so, by then, I'll have a better sense of where the IRS stands on the various documents that could support the transition period.

Fingers crossed!

scLA · 08-12-2022, 05:01 PM

Quote:

Originally Posted by tracythorne

Just got back from dealership in Richmond, VA. I have a 330e on order for the past three months with no allocation yet.

Fortunately, they were willing to do the paperwork to give me a signed contract today - it's even time stamped in case the bill gets enacted sometime today.

Who knows if it will work. Hopefully, the car comes in before December 31, and if so, by then, I'll have a better sense of where the IRS stands on the various documents that could support the transition period.

Fingers crossed!

Is the 330e assembled in SC? If so, no changes to the EV credit until 2023

scLA · 08-12-2022, 05:30 PM

For anyone wondering, the House passed the bill today and Biden said he would sign it into law next week with a celebration of the bill on Sept 6. So if you're waiting to pick up your i4, get it this weekend!

techwhiz1 · 08-12-2022, 05:42 PM

Quote:

Originally Posted by slazLA

For anyone wondering, the House passed the bill today and Biden said he would sign it into law next week with a celebration of the bill on Sept 6. So if you're waiting to pick up your i4, get it this weekend!

Or get your docs in order.

TurtleBoy · 08-12-2022, 06:20 PM

Quote:

Originally Posted by slazLA

Is the 330e assembled in SC? If so, no changes to the EV credit until 2023

It is not assembled in SC but still qualifies since it is in Mexico. That aside, the EV credit for it can change prior to 2023 because the battery requirements part of the legislation become effective the day after the Secretary issues the guidance. The due date for that is 12/31/2022 but it could be issued at anytime.

scLA · 08-12-2022, 07:17 PM

Interesting development... I just received an email from my CA at BMW of Buena Park stating they'll take part of the deposit as non-refundable to make it more of a binding agreement. Here's the email message and attachments.

Dear Valued Customer,

As you may be aware, the government recently passed the Inflation Reduction Act which is expected to be signed into law in the coming days. Included within this bill are significant changes to the existing Federal tax credit for the purchase of EV vehicles.

Although dealers and manufacturers are still deciphering this legislation, we are taking a proactive approach based on some of the language and provisions included within the bill. As it reads, under this new legislation, the Federal Tax Credits for a BMW i4 or iX purchase would no longer qualify once signed into law.

In a good faith effort to secure the tax credits, we are recommending that you sign the attached “Agreement”. We believe that executing this “Written binding agreement” prior to the legislation taking affect, will accomplish this.

In order to ensure this agreement is considered “binding” we must require a $500 non-refundable deposit. (If your deposit has already been received, this is simply stating $500 of it is non-refundable).

Lastly, in no way are stating this is a guarantee that you will receive this or any tax credit. Since this is a fluid situation, we recommend you seek personal tax advice. However, without executing this signed agreement in a timely manner, we are most certain you will not receive the tax credits.

Please sign and return the attached files.

Sincerely

Daniel Lee
Client Advisor
BMW of Buena Park
6750 Auto Center Dr.
Buena Park, CA 92621

scLA · 08-12-2022, 07:27 PM

Quote:

Originally Posted by cruzer666

Quote:

Originally Posted by slazLA

Interesting development... I just received an email from my CA at BMW of Buena Park stating they'll take part of the deposit as non-refundable to make it more of a binding agreement. Here's the email message and attachments.

Dear Valued Customer,

As you may be aware, the government recently passed the Inflation Reduction Act which is expected to be signed into law in the coming days. Included within this bill are significant changes to the existing Federal tax credit for the purchase of EV vehicles.

Although dealers and manufacturers are still deciphering this legislation, we are taking a proactive approach based on some of the language and provisions included within the bill. As it reads, under this new legislation, the Federal Tax Credits for a BMW i4 or iX purchase would no longer qualify once signed into law.

In a good faith effort to secure the tax credits, we are recommending that you sign the attached "Agreement". We believe that executing this "Written binding agreement" prior to the legislation taking affect, will accomplish this.

In order to ensure this agreement is considered "binding" we must require a $500 non-refundable deposit. (If your deposit has already been received, this is simply stating $500 of it is non-refundable).

Lastly, in no way are stating this is a guarantee that you will receive this or any tax credit. Since this is a fluid situation, we recommend you seek personal tax advice. However, without executing this signed agreement in a timely manner, we are most certain you will not receive the tax credits.

Please sign and return the attached files.

Sincerely

Daniel Lee
Client Advisor
BMW of Buena Park
6750 Auto Center Dr.
Buena Park, CA 92621

Any chance to get a copy of that agreement ?

I attached it to the post but I think it may only be visible on the Bimmerpost website and not mobile app

cruzer666 · 08-12-2022, 07:32 PM

Awesome! Thanks , I'm emailing my CA

TurtleBoy · 08-12-2022, 08:30 PM

Quote:

Originally Posted by slazLA

I attached it to the post but I think it may only be visible on the Bimmerpost website and not mobile app

Here are links to them for the mobile app.

Links for mobile app users -

Notice to Consumers Regarding Electric Vehicle Credits final
Updated Purchase Deposit Receipt Final

Notice to Consumers Regarding Electric Vehicle Credits final.pdf

Updated Purchase Deposit Receipt Final.pdf

jayp98 · 08-13-2022, 10:14 AM

Quote:

Originally Posted by TurtleBoy

Quote:

Originally Posted by slazLA

I attached it to the post but I think it may only be visible on the Bimmerpost website and not mobile app

Here are links to them for the mobile app.

Links for mobile app users -

Notice to Consumers Regarding Electric Vehicle Credits final
Updated Purchase Deposit Receipt Final

Attachment 2955629

Attachment 2955630

This is a great write up! Unfortunately my dealer isn't cooperating and won't sign even with amendments. Any advice on how to move forward?

Technic · 08-13-2022, 10:44 AM

Quote:

Originally Posted by jayp98

This is a great write up! Unfortunately my dealer isn't cooperating and won't sign even with amendments. Any advice on how to move forward?

You cannot move forward without your dealer agreement. You may have to work with whatever paperwork you have now.

This whole transition rule is crap.

TurtleBoy · 08-13-2022, 01:13 PM

Quote:

Originally Posted by jayp98

This is a great write up! Unfortunately my dealer isn't cooperating and won't sign even with amendments. Any advice on how to move forward?

That's too bad but you may be covered. Keep all of the correspondence showing that your intention was to have a binding contract for that vehicle. The dealer wouldn't give you one but, if audited, your intention may be enough. I would give it a shot.

JM71 · 08-15-2022, 12:15 PM

Any idea when Biden is going to sign the bill? I searched Google and Whitehouse.gov and couldn’t find anything on the timing. I’m trying to work with my dealer to get something in place before he signs it. Clock is ticking…

08-12-2022, 08:42 AM	#135
techwhiz1 Lieutenant Colonel 1856 Rep 1,964 Posts Drives: E90 335, E70 X5 Join Date: Aug 2021 Location: Ca, Bay Area iTrader: (0)	I have a term sheet and VIR which is all you are likely to get in a bunch of states. If audited I will present my documents. The text thread that showed I attempted with the dealer to obtain a binding agréent. Statements from the dealer that they cannot provide the documents. A copy of the law that prohibits binding agreements. I will then argue the equal protection clause. Umder the constitution taxing people differently under federal law is not allowed. Obtaining what the law in California allows should be enough. I'm not a lawyer or tax professional but I do know that you can't require what is impossible to obtain. __________________ Arctic Metallic\CF Splitters,Spoiler, Mirror Covers\LED Tails\LSD\Tinted\Coded\Apex SM10-19"\LED Angel Eyes\Gloss Black Grill\Integrated V1\M-Performance Brakes\Cobb Tuned\xHP Flash ->
	Appreciate 3 scLA183.50 cruzer6661237.00 pjbm413.50 Quote

08-12-2022, 12:03 PM	#137
heatmizr Captain 153 Rep 709 Posts Drives: E70 X5 50i M-Sport Join Date: Feb 2015 Location: Charlotte, NC iTrader: (0)	Rivian and Lucid are being very proactive: InsideEVs : Rivian, Lucid Tell Reservation Holders To Sign Binding Agreements. https://insideevs.com/news/603726/ri...ing-agreement/ I emailed my Sales guy at the BMW dealership and asked what their take was and what they could provide. No response yet.
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08-12-2022, 03:54 PM	#142
tracythorne Private First Class 81 Rep 120 Posts Drives: 850 GC Join Date: Mar 2020 Location: richmond, VA iTrader: (0)	Just got back from dealership in Richmond, VA. I have a 330e on order for the past three months with no allocation yet. Fortunately, they were willing to do the paperwork to give me a signed contract today - it's even time stamped in case the bill gets enacted sometime today. Who knows if it will work. Hopefully, the car comes in before December 31, and if so, by then, I'll have a better sense of where the IRS stands on the various documents that could support the transition period. Fingers crossed!
	Appreciate 0 Quote

08-12-2022, 05:30 PM	#144
scLA Second Lieutenant 184 Rep 254 Posts Drives: 2022 G05 Join Date: Apr 2022 Location: Los Angeles iTrader: (0)	For anyone wondering, the House passed the bill today and Biden said he would sign it into law next week with a celebration of the bill on Sept 6. So if you're waiting to pick up your i4, get it this weekend!
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08-12-2022, 07:32 PM	#149
cruzer666 Major 1237 Rep 1,203 Posts Drives: 2023 BMW i4 M50 Join Date: Nov 2019 Location: Los Angeles, California iTrader: (0) Garage List 2023 BMW i4 M50 [10.00]	Awesome! Thanks , I'm emailing my CA
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08-15-2022, 12:15 PM	#154
JM71 Private First Class 21 Rep 100 Posts Drives: P911 Join Date: Aug 2009 Location: Birmingham iTrader: (0)	Any idea when Biden is going to sign the bill? I searched Google and Whitehouse.gov and couldn’t find anything on the timing. I’m trying to work with my dealer to get something in place before he signs it. Clock is ticking…
	Appreciate 0 Quote