Fisker's Plan for Newly Proposed EV Tax Credit Bill

Henrik Fisker and team are monitoring the situation and have a plan in the event the newly proposed Inflation Reduction Act becomes law.

Today, we learned that Fisker has a plan in the event the newly proposed Inflation Reduction Act is passed. It was unveiled late Wednesday evening and makes significant changes to the EV tax credit system. Democrats are moving fast too. The US Senate is expected to vote on the proposed legislation next week.

The Fisker Ocean could lose eligibility for the $7,500 Federal tax credit, because it is not assembled in North America to qualify for new credit. The new bill would take effect on January 1, 2023. It would eliminate the 200k vehicle manufacturer cap. All new EV companies like Fisker were planning to offer this tax credit to their customers. However, Henrik Fisker and team are monitoring the situation. Fisker has a plan in the event the Inflation Reduction Act is passed as it stands.

Fisker’s Plan

Fisker has a plan in the event the EV tax credit system changes with the newly proposed legislation. On Page 386, line 20, of the EV Tax Credit Bill there is a transition provision.

It states: EVs with written sales orders dated in 2022 prior to the date of President signing the bill, but delivered in 2023 allows the purchaser to claim the “old” credit in 2023.

Yesterday, Henrik was asked if Fisker will start pre-orders/written binding contracts in 2022 if the legislation is passed. Furthermore, he was asked if this possible plan would be limited to Ocean One or other trims as well such as the Extreme, Ultra, and Sport. Henrik said, “We can take that action if needed! Yes, all others [trims] should be possible. We are looking at what we need to do.”

By starting written binding contracts for all trims in 2022, this would allow reservation holders to purchase their Fisker Ocean this year to be grandfathered in for the $7,500 tax credit. We recommend reserving your Fisker Ocean now if you have not already done so.

What You Can Do to Help

The EV Tax Credit Bill will likely pass the senate next week, before it goes to the House of Representatives. Without question, the Inflation Reduction Act could be improved. It seems like the existing 200,000 vehicle manufacturer cap should phase out over time. Ending it abruptly seems like a bad approach to encourage mass EV adoption. That way it gives companies like Fisker a time to make the transition. There is no way for Magna to build a CO2 neutral factory in North America before the end of the year. Here’s how you can help by taking action today. Write your Congress Representative. Below is an email template you can use.

Dear [Name of Representative],

There are significant changes being proposed to the EV tax credit system, in the new Inflation Reduction Act (IRA) that is currently before Congress. 

The IRA’s proposed EV tax credit plan hurts consumers like myself who want to purchase electric vehicles that are made by American companies but may be assembled outside of the United States. It seems like bad policy to abruptly end the current EV tax credit that has a 200,000 vehicle manufacturer cap, with no requirements about vehicles being assembled in the U.S. The new policy will significantly limit my purchase options and will stifle competition and growth for American EV startup companies.

The current policy should be slowly phased out for American companies as they work to transition to accommodate the newly proposed legislation. Please consider my suggestion as it still supports American EV companies and workers,  and will help encourage important EV adoption and American development and innovation.

Thank you for your understanding,

Sincerely,

[Insert Your Name]