IRS clarification for tax. Implications for Ohio delivery?

[paraglide]

Anyone know the truth about this? Have seen talk of it pop up on other forums, some claim title needs transfered to get the tax credit, others say car just needs delivered. Does anyone know what's true for Ohio? I was planning on picking up something locally in inventory, but need to know if tax credit will be halved even if I take delivery this year. I'll call around BMV tomorrow, but afraid whoever answers may not really know/will just tell me what I want to hear.

IRC 30D Plug-In Electric Drive Motor Vehicle Credit Sales Definition Clarification | Internal Revenue Service

Furthermore, Section 1 of the Notice states, “[t]his notice also amplifies Notice 2009-54 and Notice 2009-58, 2009-30 I.R.B. 163 (relating to the plug-in electric vehicle credit under § 30) to provide that a vehicle is considered “acquired” when title to that vehicle passes under state law.” Specifically, Section 4.07 of the Notice provides that “[a] vehicle is not “acquired” before the date on which title to that vehicle passes under state law.”

 

[DriveMe]

I am not a lawyer, but to me this seems rather clear:

Unless otherwise explicitly agreed, title passes to the buyer at the time and place at which the seller completes performance with reference to the physical delivery of the goods, despite any reservation of a security interest and even though a document of title is to be delivered at a different time or place...

Lawriter - ORC - 1302.42 Passing of title - reservation for security - limited application of this section - UCC 2-401.

 

[paraglide]

Thanks for taking the time to find that, seems reassuring.

 

[DriveMe]

No problem!
I think most people confuse the "transfer of title" (essentially the transfer of ownership, which happens when the car is delivered) with the "delivery of the document of title" (a registration formality, which may happen a month or two later).

 

[rdunniii]

I received my car 30 Sept and I still have not received my title.

 

[DriveMe]

Legally the title (the ownership) of the car has been passed to you on September 30. What you haven’t received yet is the document of title. You don’t need to have that document in order to qualify for the tax credit. If you financed your car, depending on the state and the type of financing, the lender may hold onto your title document until you pay off your loan. So you may not actually receive it for years.

 

[Stacks]

This rumor started with a short seller.

Surprise, surprise...it’s wrong. You just need to take delivery by dec 31.

 

[ewoodrick]

Anyone know the truth about this? Have seen talk of it pop up on other forums, some claim title needs transfered to get the tax credit, others say car just needs delivered. Does anyone know what's true for Ohio? I was planning on picking up something locally in inventory, but need to know if tax credit will be halved even if I take delivery this year. I'll call around BMV tomorrow, but afraid whoever answers may not really know/will just tell me what I want to hear.

IRC 30D Plug-In Electric Drive Motor Vehicle Credit Sales Definition Clarification | Internal Revenue Service

Furthermore, Section 1 of the Notice states, “[t]his notice also amplifies Notice 2009-54 and Notice 2009-58, 2009-30 I.R.B. 163 (relating to the plug-in electric vehicle credit under § 30) to provide that a vehicle is considered “acquired” when title to that vehicle passes under state law.” Specifically, Section 4.07 of the Notice provides that “[a] vehicle is not “acquired” before the date on which title to that vehicle passes under state law.”

The article that you posted is about how the EV quotas are calculated, not necessarily how the tax rebate is considered.
I'm pretty sure that Ohio law has nothing to do here.

I'd be surprised if the IRS cared about anything but when the money transfer occurs.

Talk to your accountant, look at the IRS form, or your tax software to their guidance.

And trust me, Tesla is going to try their hardest to get that transaction by the end of the year. Aside from Customer Service, this will be end of year numbers and will be a huge bellwether as to the future of the company.