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Discussion Starter · #1 ·
With the Inflation reduction act of 2022 likely to pass, does anyone with a current order plan to cancel if Polestar doesn't provide written agreement? It seems like a simple thing they can do to secure a tax credit for the many that have already put deposits down. I have contacted the Space who gave me the response( which makes no sense as the bill is written):
You are protected by your deposit so your polestar as well as any other polestar that get ordered towards the end of this year will still be eligible. Since your delivery is later this month nothing will change. However there is is no writing protection on it but Polestar HQ told us directly that we would still be eligible.

I also sent a contact request regarding this issue early on 8/5 to Polestar with no response yet.

Please only respond if you currently have a car on order.
 

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Mine is on order and due to arrive in October, so I know I will get the $7500 tax credit, but I’m not really sure what you’re asking here. You want PoleStar to give you a written agreement for what? If you take delivery of your car in 2022, you are eligible for the $7500 tax credit, as long as your tax liability is $7500 or more. If you take delivery of your Polestar after December 31, you’re not going to get any tax credit at all, regardless of what PoleStar tells you, as US tax law is not up to PoleStar, and the car simply will not be eligible for the tax credit, as it is currently written. If I have this totally wrong in my head, please set me straight.
 

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Discussion Starter · #4 ·
Mine is on order and due to arrive in October, so I know I will get the $7500 tax credit, but I’m not really sure what you’re asking here. You want PoleStar to give you a written agreement for what? If you take delivery of your car in 2022, you are eligible for the $7500 tax credit, as long as your tax liability is $7500 or more. If you take delivery of your Polestar after December 31, you’re not going to get any tax credit at all, regardless of what PoleStar tells you, as US tax law is not up to PoleStar, and the car simply will not be eligible for the tax credit, as it is currently written. If I have this totally wrong in my head, please set me straight.
What you say is not true....Polestar vehicles are ineligible as soon as the bill is signed due to final assembly requirement, unless a written sales agreement can be provided
 

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Discussion Starter · #5 ·
Mine is on order and due to arrive in October, so I know I will get the $7500 tax credit, but I’m not really sure what you’re asking here. You want PoleStar to give you a written agreement for what? If you take delivery of your car in 2022, you are eligible for the $7500 tax credit, as long as your tax liability is $7500 or more. If you take delivery of your Polestar after December 31, you’re not going to get any tax credit at all, regardless of what PoleStar tells you, as US tax law is not up to PoleStar, and the car simply will not be eligible for the tax credit, as it is currently written. If I have this totally wrong in my head, please set me straight.
page 385:
(2) FINAL ASSEMBLY.—The amendments made 3 by subsection (b) shall apply to vehicles sold after 4 the date of enactment of this Act.
page 366:
(b) FINAL ASSEMBLY.—Section 30D(d) is amend- 15 ed— 16 (1) in paragraph (1)— 17 (A) in subparagraph (E), by striking 18 ‘‘and’’ at the end, 19 (B) in subparagraph (F)(ii), by striking 20 the period at the end and inserting ‘‘, and’’, 21 and 22 (C) by adding at the end the following: 23 ‘‘(G) the final assembly of which occurs 24 within North America.’’
Once enacted Polestar is ineligible due to final assembly provision unless a written contract exists prior to the date of signing
 

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What you say is not true....Polestar vehicles are ineligible as soon as the bill is signed due to final assembly requirement, unless a written sales agreement can be provided
I’m still trying to understand what you’re saying, man. Yes, the PoleStar is ineligible for the new federal incentive program because they are not assembled in the USA. What I'm asking you to explain is what you expect this written agreement from PoleStar to say, in order that you can take delivery of the car in 2023 and still get the $7500 incentive. I'm not trying to be an ass, I am genuinely asking you.
 

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I’m still trying to understand what you’re saying, man. Yes, the PoleStar is ineligible for the new federal incentive program because they are not assembled in the USA. What I'm asking you to explain is what you expect this written agreement from PoleStar to say, in order that you can take delivery of the car in 2023 and still get the $7500 incentive. I'm not trying to be an ass, I am genuinely asking you.
Polestar won’t do what your asking. If they do and your not able to claim the incentive they will be liable for it, there is such a demand for the car if you walk away they will have sold the car they built for you in days if not seconds.
 

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Polestar won’t do what your asking. If they do and your not able to claim the incentive they will be liable for it, there is such a demand for the car if you walk away they will have sold the car they built for you in days if not seconds.
You quoted the wrong person, just to be clear.
 

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I’m still trying to understand what you’re saying, man. Yes, the PoleStar is ineligible for the new federal incentive program because they are not assembled in the USA. What I'm asking you to explain is what you expect this written agreement from PoleStar to say, in order that you can take delivery of the car in 2023 and still get the $7500 incentive. I'm not trying to be an ass, I am genuinely asking you.
I think I know what they’re referring to. If you have a written sales agreement signed before the law is signed the old incentive program applies. Now the “what” that needs to be in this agreement is open for interpretation, albeit doesn’t matter as both Polestar Customer Service and my local space says they won’t provide such an agreement.
 

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As this guys says, there’s a LOT of confusion on this issue, but I think this guy does a good job cutting through all the leageese speak:


Start at about 4:05 where he distills some of this, and it would appear that if you put a deposit on, or took delivery of a EV before the Bill is signed and enacted into law (whenever that might be), yoy will be entitled to the $7,500 tax break (provided you made enough taxable income to qualify).

I would have been shocked if Congress enacted a law that would have basically pulled the rug out from under those of us who made their purchase based, in part, on getting this $7,500 tax credit.
 

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I think I know what they’re referring to. If you have a written sales agreement signed before the law is signed the old incentive program applies. Now the “what” that needs to be in this agreement is open for interpretation, albeit doesn’t matter as both Polestar Customer Service and my local space says they won’t provide such an agreement.
OK thank you yes, at least now I know what the OP was talking about. I would be surprised if it worked that way, but I hope it does, as it would save a lot of people a lot of money here. Thanks again for the clarification.
 

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Based on my read of the text the most risk averse strategy would be to assume Polestar loses the credit as soon as Biden signs the bill, enacting it. But there’s a lot of gray area here that remains TBD so I personally feel like that’s an extreme position to take.

I think it is entirely reasonable to assume that a deposit and going through steps to secure financing etc and just waiting for the car to come in suffices as “written binding order” for the purposes of retaining the current credit. At the least, the IRS would have to indicate that that’s specifically doesn’t apply before tax filing season because a lot of folks will be assuming that - not just customers of Polestar but also Volvo, Ford, Hyundai, Kia, Audi, Porsche, bmw, Merc, etc.

The main gray area that seems more risky to me are Lucid and Rivian who are taking deposits for cars that are far away from production not to mention delivery.

if I had deposit and paperwork filed now, and took delivery before Biden signs then there’s no question it’s ok to take the credit. If I had a deposit etc in now and take delivery after Biden signs but still in ‘22, personally I would feel comfortable taking the credit on my taxes in April.

if I took delivery in ‘23 I’d be more uncomfortable since that credit would have to be taken on the taxes filed April ‘24 and it’s not clear the IRS would be accepting the old credit paperwork at that time. I’d want to see some guidance that Polestar customers would have the credit for ‘22 deposit holders before assuming I could take the credit for delivery taken 1/1/23 or later.

if I put a deposit and made it through the online steps after Biden signs I’d assume that no I can’t take the credit.

all that said I’m just some internet guy. Not a tax pro. But the fact that there’s still so much confusion means it’s likely that a lot of people will remain confused, which probably means you can fall through a less than enforced gap or loophole
 

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I’m still trying to understand what you’re saying, man. Yes, the PoleStar is ineligible for the new federal incentive program because they are not assembled in the USA. What I'm asking you to explain is what you expect this written agreement from PoleStar to say, in order that you can take delivery of the car in 2023 and still get the $7500 incentive. I'm not trying to be an ass, I am genuinely asking you.
The Secretary of the Treasury has until Dec 31st to produce the guidelines and rules that will ultimately determine exactly what documentation is required in order to qualify. A "note" from Polestar is almost certainly not enough. A refundable deposit is also not likely to qualify - even a non-refundable deposit will likely not work. A binding purchase contract probably will, but there may be stipulations on specific language or clauses that need to be included.
Since these rules and guidelines won't be formulated until well after a bill is enacted there is no way for Polestar to craft a document that is guaranteed to qualify vehicles delivered after the "Final Assembly" clause kicks in (currently when the Bill is signed).
 

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From CNN - As far as the tax credit is concerned, there are many things in this bill that will have future impacts for consumers. I think American EV and battery manufacturers will benefit, but until things are sorted out, it may cost consumers more, with no tax savings and/ or possible higher manufacturing costs?

Savings on buying an electric vehicle: The bill extends the current $7,500 tax credit for a new vehicle, as well as a $4,000 tax credit off a used EV. It also gets rid of the current cap that cuts automakers off tax credits after they’ve sold 200,000 EVs, and it is written so buyers can get an immediate discount at the dealership, instead of waiting weeks or months for their tax credit to come through.

Still, there’s a significant caveat: Automakers and consumers likely won’t be able to take advantage of this tax credit over the next few years. At the insistence of Democratic Sen. Joe Manchin, the tax credit was written in a way so that automakers are forced to move their EV supply chains away from China and to the US and countries where the US has free trade agreements. Vehicles must be built in North America, and EV batteries must also not come from countries like China.

As a result, US automakers likely won’t be able to offer the credit in the next few years as they try to build up their domestic supply chains, Democratic Sen. Debbie Stabenow of Michigan said.

The tax credit is also limited to trucks, vans and SUVs under $80,000, and other vehicles under $55,000, and has an income threshold for consumers.”
 

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Yeah. So this bill is designed to kill EV incentives in the US. Even the Congressional Budget Office estimates only 11,000 buyers will qualify for the incentive in 2023.
 

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