The US government's Inflation Reduction Bill will make some significant changes to the current $7500 tax credit that buyers of new EVs receive.
Vehicles that undergo final assembly outside the US will become ineligible as soon as the bill becomes law. Rules dictating that manufacturers source increasing percentages of their batteries from nations with free trade agreements will come into effect in subsequent years.
Most importantly for Lucid and its prospective customers the bill eliminates the tax credit on vehicles with an MSRP of over $55,000.
To build a sustainable tomorrow, we must secure a sustainable today. If passed, the Inflation Reduction Act will impact EV tax credits. We are exploring opportunities to invite reservation holders to confirm their orders now in order to keep eligibility for current incentives. pic.twitter.com/4bstI32oeb— Lucid Motors (@LucidMotors) August 9, 2022
As reported by the Lucid Insider Blog, Lucid has been taking steps to (hopefully) ensure that its customers still qualify for the significant $7500 credit.
In a recent email to reservation holders Lucid invited those still on the fence to confirm their reservations and convert to formal orders as a way of securing the tax credit. Here's what it said:
This past weekend, the Senate passed the Inflation Reduction Act, which eliminates the $7,500 tax credit for sedans with an MSRP over $55,000. This means that if the bill is enacted, Lucid Air will no longer qualify for this tax credit. The House is expected to vote on the bill this Friday, August 12.
Many of you have asked what we can do to help you maintain your eligibility for this tax credit.
The current text of the bill includes a “transition rule,” which may maintain eligibility for Lucid customers who enter into a contract to purchase their Lucid Air before the bill is signed. We’ve decided to help reservation holders take advantage of the transition rule by opening a window to place an order for their Lucid Air. This window is now open, and will remain so until 12 a.m. the morning the bill is passed, which could be as soon as this Friday.
To be completely clear, you don’t have to place an order now and your reservation will remain in place — we’re doing this to help those who want to do everything possible to maintain eligibility for the federal tax credit. If you don’t wish to place an order now, you’ll still have the opportunity to do so closer to your vehicle’s production date. Please note that placing an order now will not alter the expected delivery timelines for Touring and Pure.
However, if you decide to place an order now, please understand you’ll be entering into a contract, and your deposit will become non-refundable.
To place your order, log into your Lucid account, go to your “Designs and Orders” tab, identify the relevant reservation and click the “Order” button. A pop-up window will appear where you can again click “Confirm this order” to complete the process
Rush To Order
Despite the qualifier "may maintain eligibility for Lucid customers" the response in the Lucid owners forum has been resoundingly positive with a number of commenters praising Lucid for being quick to move on the issue. Many reservation holders are reporting that they've converted their reservations to orders despite the fact that they may not see their cars delivered until some time in 2023.
In light of Lucid's recent reduction in its 2022 production targets this seems like a sign that Lucid's buyers still have a great amount of faith in the company.
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James Walker is an Automotive Journalist at Torque News focusing on Lucid Motors. If it's got wheels he's interested, and he's looking forward to seeing what kind of cars the EV revolution brings us. Whether it's fast, slow, new, or old, James wants to have a look around it and share it in print and on video, ideally with some twisty roads involved. You can connect with James on Twitter, Instagram, and LinkedIn.