When it comes to US legislation, finding a loophole can be beneficial.
For the auto space, the soon-to-be-passed Inflation Reduction Act establishes new thresholds for the federal EV credit in the US.
The new bill establishes a $55,000 threshold for sedans and an $80,000 limit for SUVs and trucks.
This means a fair amount of EVs fall outside the thresholds and would no longer be eligible for the $7,500 credit.
However, the bill’s “Transition Rule” could be a loophole that could benefit both car owners and EV automakers.
The transition rule allows a US buyer who enters into a new vehicle contract before the law is passed to be treated the same as a customer ordering a vehicle while the previous bill was still in place.
This means buyers can enter into a binding agreement before the Act passes and could still receive the $7,500 in federal tax credits.
The first automaker to figure this out was Fisker.
However, as per reporting by InsideEVs, it looks like Rivian and Lucid are following suit.
Both companies emailed existing reservation holders a binding agreement to review, sign and send back.
However, the automakers did add language that did not guarantee the client would be eligible for the tax credit if they signed an agreement.
Furthermore, Lucid noted that customers’ reservation fees become non-refundable order deposits if they enter into a contract.
Either way, it is an interesting move, and hopefully for those who are still waiting for their vehicle, a worthwhile move to save $7,500.