By Michael Elkins
Sustainable electric vehicle maker, Fisker Inc (NYSE:FSR) over the weekend unveiled its process for qualifying US-based Fisker Ocean reservation holders to retain eligibility for a $7,500 federal tax credit should congress pass the Inflation Reduction Act and it is signed into law.
Qualifying reservation holders in the US are eligible for a $7,500 tax credit under the existing law, but the proposed legislation, as currently drafted, would make the Australian-built Fisker Ocean ineligible. The law also imposes a qualifying cap on household income. The household income cap would be $150,000 for single filers and $300,000 for couples filing jointly.
Despite these qualifiers, Fisker believes that customers may be able to retain eligibility for the full $7,500 credit for the 2022 tax year by converting their existing reservations into a binding sales contract for the purchase of the Fisker Ocean.
"Many of our reservation holders are looking forward to the tax advantages of purchasing an electric vehicle. Therefore, we acted swiftly and proactively to protect access to existing tax credits for qualifying Fisker Ocean buyers should the Inflation Reduction Act become law. We are focused on a clean future for all, so we are building the Fisker Ocean in one of the world’s most sustainable production facilities, Magna’s carbon-neutral factory in Graz, Austria," Chairman and CEO Henrik Fisker said.
"Our reservation holders have given us a vote of confidence, with 5,000 recently committing $5,000* each to secure a Fisker Ocean One launch edition vehicle," he added. "So, we need to do this work on their behalf to show that we have their best interests at heart."