Do I get an IRA clean vehicle tax credit if I just bought a 2023 Chevy Bolt EUV last week?

Submitted by Peace_Berry_House t3_zzg4wg in personalfinance

Am I eligible for the new federal clean vehicle tax credit if I just bought a 2023 Chevy Bolt EUV last week? I input the VIN into the IRS EV lookup tool and the vehicle met the new manufacturing location criteria. I also meet the income criteria. But I am really confused by the timing of the old rules and new rules. It’s really unclear what happens during the month of December. I thought I just needed to buy an eligible 2023 model but did I just screw myself out of $7500? For 2022 before the IRA rules took effect (which seems to be on January , 2023) the 2023 Chevy Bolt EUV is not listed on the IRS website as having met a manufacturer sales cap but I bought it on December 19, 2022 because my dad said the price was likely to go up $6500 or more after Chevy had lowered the price this year due to a recall that did not affect my vehicle. He’s usually not wrong about this stuff but now I am really confused and think I should have bought the vehicle on or after January 1, 2023. If this is the case is there any recourse anyone is aware of? Thanks in advance.

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Interesting-Dish8894 t1_j2bevgv wrote

From what I read you got a fat discount from chevy for buying that and you don’t get any credits for 2022. And you don’t get any for 2023 because you bought the car in 2022

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Peace_Berry_House OP t1_j2bhxy2 wrote

Well assuming Chevy does raise the price as expected I guess it’s not too bad saving $6500 at the point of sale as opposed to reducing my tax liability by either $3750 or $7500. It is also unclear what happens if there is a manufacturer phase out during the tax year you buy the vehicle - is it the date you purchase the vehicle or date you file your taxes? Point being if this is super popular you could lose out on the rebate anyway. I am just going to be grateful that I calculated I will be saving about $5,000 in fuel and maintenance costs annually after subtracting out the estimated cost of electricity commuting to work and expected EV maintenance and not too upset at myself for something I can’t change. I’m not financially vulnerable but this still is annoying to potentially have left money on the table.

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freddie_the_mercury t1_j2bf03f wrote

See this page for purchases through tomorrow. You do not qualify for a credit.

https://www.irs.gov/credits-deductions/manufacturers-and-models-for-new-qualified-clean-vehicles-purchased-in-2022-and-before#:~:text=If%20you%20bought%20a%20new,Internal%20Revenue%20Code%20Section%2030D.

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kepachodude t1_j2bgmux wrote

Daaaanng. 1 week to early OP.

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freddie_the_mercury t1_j2bhpyw wrote

Im positive prices will jump starting Monday though.

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Peace_Berry_House OP t1_j2bj5v0 wrote

For everyone else’s sake I hope you’re wrong. For my own sake I hope you’re right lol. I found news articles hinting that prices are going to be raised because the manufacturers don’t want to incur the additional costs of manufacturing in the US or providing proof that certifies where the parts were sourced.

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freddie_the_mercury t1_j2bn051 wrote

dealers will jack the prices up Jan 1. They can charge more due to the credit so they will!

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Peace_Berry_House OP t1_j2bi3nh wrote

What’s weird is the 2023 Chevy Bolt EUV is not listed under qualifying vehicles for 2022 under the old rules but is listed as qualified under the new rules?

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freddie_the_mercury t1_j2bii07 wrote

right. no GM vehicles qualified after 2020 under the old rules due to the manufacturer limit.

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Peace_Berry_House OP t1_j2biup5 wrote

Ohhh that’s why they didn’t publish numbers for 2021 and 2022, assumed to be zero. Dang. Well, thanks for your help interpreting. I wish this information had been published earlier but that’s on me for jumping the gun.

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amcarney t1_j2bh986 wrote

You needed to buy in 2023 for the new credit. Hopefully you got a good deal on the car.

Tesla has been offering $7500 off if you take delivery before the end of 2022 likely because they saw sales drop off a cliff as people starting deciding to wait three or four more weeks for the new credit to kick in... did GM offer any great deals to move inventory?

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Peace_Berry_House OP t1_j2bipdk wrote

That makes sense. Yes, the car was $6500 below MSRP plus I got a $2000 Drive Clean rebate from NY at the point of sale (still taxable though!). At least I am really happy with the make and model I chose lol.

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93195 t1_j2bhibp wrote

I mean the reason the price is going up (or that it was lowered for now) is probably because of the tax credit (and current lack thereof). So it sounds like it could be about the same either way, which was probably Chevy’s point.

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Peace_Berry_House OP t1_j2big90 wrote

I think that’s what my dad was getting at but before this tax guidance was released today it seemed that cars purchased after the IRA legislation was passed eg after October 2022 were going to be eligible. Now it appears it has been finalized that no purchase qualifies before January 1, 2023. In terms of logistics and communication, not a point about politics, I feel like this was really poorly handled by IRS and DOE based on the consumer guidance I was reading at the beginning of Q4 2022.

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