Understanding diagnostic 58374 in Lacerte

You might see this diagnostic come up while working on Form 8936 (Qualified Plug-in Electric Motor Vehicle Credit):

"Lacerte doesn't permit claiming an EV credit on form 8936 in 2022 if car was placed in service despite binding contract rule adopted by the IRS."

What it means:

The Inflation Reduction Act passed in 2022 made significant changes to the EV tax credit. One of these changes included a "binding contract" rule.

Essentially, if you had a written binding contract to purchase an EV before August 16, 2022, and recieved delivery of the vehicle before January 1, 2023, you could still claim the credit under the previous rules, even if the vehicle was placed into service after the new rules came into effect.

This diagnostic generates because Lacertefollows the rules as they were originally presented, and does not recognize the exception for binding contracts.