[saltsman]

@icarus_ we are right there with you. Wanted T8 Denim Blue Ultimate Dark with wool seats, so a custom build was required. Waited over six months for an allocation, got it, then were notified that the factory isn't producing Dark trim until March. We searched nationally for a T8 Denim Blue Ultimate Dark and found one 1,500 miles away with leather seats that a buyer declined. We grabbed it and are getting it shipped. Not ideal, but the only way we could get close to what we wanted while still eligible for the $7,500 tax credit.

 

[saltsman]

Because the final assembly is in the US, any S60 T8 (including Polestar) entering into service in 2022 is eligible for the full $7,500. Once the clock strikes midnight on New Year's Eve, the S60 will only be eligible if the MSRP is under $55K and the buyer makes less than the modified gross income limit of $150k for individuals, $225k for head of household, and $300k for joint returns. As is, the Plus just squeaks by and Ultimate is ineligible due to price. Polestar S60 is completely out of the running post-2023.

Domestic assembly requirements took effect the day the bill was signed and eliminated everything but the S60. Price cap and income cap take effect on January 1, 2023. That leaves a small opening of a few months for upper-end S60s to still be eligible. There is also a potential that in 2023 the $7,500 could be reduced depending on where Volvo sources the minerals for the battery packs, but that is likely only an answer Volvo knows at this time and I've not seen any word on that from the company.

If you are in the market for an S60 Polestar or S60 Ultimate, you have a $7,500 incentive to purchase before the end of the year.

 

[saltsman]

If you have a VIN assigned, see if your dealer will allow you to do an accelerated/advanced delivery. Many dealers will be flexible at end of the year when many customers need to close before year-end. It's worth a call to see if they can be flexible on that.

 

[saltsman]

Thanks - I hadn't considered doing that. Will follow up with my sales rep

Our sales rep at Volvo Austin offered to do that for us. The requirement was an assigned VIN and payment.

 

[saltsman]

Skiping over the mineral question, any S60 under $55K MSRP should qualify, as long as you still do (modified gross income limit of $150k for individuals, $225k for head of household, and $300k for joint returns). Location of final assembly must be North America, and the S60 is the only Volvo assembled in North America. Parts don't matter, just the location of the minerals in the battery which is 🤷‍♂️ at this point.

 

[saltsman]

Thanks - I'm using the same dealer so there's hope. 😀

James Hicks was our guy. Super easy to work with. James felt confortable that as long as ther was a VIN assigned, he could do a pull ahead delivery at year end that would qualify for the IRS forms. He mentioned that lots of businesses would make that request and the dealership was accustomed to processing those end-of-year pull aheads.

Would be great for you if Texas reinstates the $2500 rebate again on Janurary 7, 2023. If you could wait until after that date, you might get both for a full $10K.

 

[saltsman]

Just to be clear, all variants of the S60 (including Polestar) still qualify for the $7,500 US tax credit if you take delivery before the end of the year. The V60 became ineligible at the moment the IRA was signed into law on August 16, 2022, due to having final assembly occurring outside of North America.

 

[saltsman]

As a T8 model, the Polestar is excluded from the Costco rebate.

*To qualify for the Volvo Limited‑Time Special, you must: (1) be a current Costco member on or before September 30, 2022; (2) register with Costco Auto Program online or through its call center to receive a certificate with your unique promotion code; (3) present your certificate and unique promotion code to any authorized Volvo Car USA dealer at time of visit; (4) take delivery between October 1, 2022 and January 3, 2023 of a new and eligible 2022 or 2023 Volvo S60, S90, V60, V90, V60CC, V90CC, XC40, XC60, XC90 to receive a $1,250 Costco member‑only incentive. Excludes all T8 models, XC40 Recharge and C40 Recharge. Retired demonstrator and service‑loaner vehicles of these eligible models qualify for the Costco member‑only incentive. The incentive will be applied at time of purchase or lease and is compatible with other eligible Volvo incentives for which the Costco member qualifies under the individual program rules. Program available to US residents only for delivery within the US at an authorized Volvo Car USA retailer only, not available in Puerto Rico, Canada or Mexico. Factory orders are not eligible. Only one (1) promotion code allowed per vehicle. Limit two (2) promotion codes per membership. Incentive is subject to change due to vehicle inventory availability.

 

[saltsman]

Shipping was around $1,000 to get our S60 shipped from Rhode Island to Texas.

 

[saltsman]

How did that process go? Did the dealer arrange for the shipping? I'm a little wary of that process, only because I've heard it can be tricky and I've never done it.

We contacted a shipping broker who worked with the actual carrier. Gave them the name of the contact at the dealership. Went about as easy as could be. Delivered to your driveway, or wherever you opt to have it delivered.

 

[saltsman]

Florida. Legit about as far away as I could go! Debating on whether to have it shipped or fly out and drive it back on an epic cross country drive. I'm not shy of long roads, in fact I tend to crave them, however I'm a little weary of taking a brand new car on mostly all highway cruise miles. I guess I could take the side highways and have some more fun with the Polestar!

FYI: Shipping from Rode Island to Texas (1,848 miles) was $900-$1200 for an open carrier and $1,500 to $1,800 for enclosed.

 

[saltsman]

If you had a committed order (via non-refundable deposit), then you should still qualify for the tax credit in the 2023 tax year. This is of course subject to tax policy interpretation but I’ve yet to see any specific cut-off delivery date for committed orders placed prior to the August 16 2022 law change.

From the viewpoint of the IRS, what you need is a binding contract prior to August 16 2022.

What is a binding contract? This what the IRS says verbatim. (Plug-In Electric Vehicle Credit IRC 30 and IRC 30D | Internal Revenue Service)

In general, a written contract is binding if it is enforceable under State law and does not limit damages to a specified amount (for example, by use of a liquidated damages provision or the forfeiture of a deposit). While the enforceability of a contract under State law is a facts-and-circumstances determination to be made under relevant State law, if a customer has made a significant non-refundable deposit or down payment, it is an indication of a binding contract. For tax purposes in general, a contract provision that limits damages to an amount equal to at least 5 percent of the total contract price is not treated as limiting damages to a specified amount. For example, if a customer has made a non-refundable deposit or down payment of 5 percent of the total contract price, it is an indication of a binding contract. A contract is binding even if subject to a condition, as long as the condition is not within the control of either party. A contract will continue to be binding if the parties make insubstantial changes in its terms and conditions.

 

[saltsman]

Do you have more info on this? I had resigned myself to losing out on the credit due to the V60s being made in Sweden.

As is often the case in the US, there are two rules. One for consumers with income caps, stringent battery mineral requirements, vehicle MSPR limits, and mandated North American final assembly. The rule for businesses has none of those requirements. Commercial Clean Vehicle Credit | Internal Revenue Service

By long-standing IRS definition, a leased vehicle is a commercial vehicle. Thus as a business owner of a commercial vehicle, the leasing company is eligible for the full credit. While the leasing company has no legal obligation to pass along the $7,500 tax credit to you, most do. The IRS further clarified this in a memo released in December. If you want to lease a $750,000 Ferrari SF90 made in Italy, it qualifies.