Fisker (NYSE: FSR) has announced plans that it believes will allow qualified US-based reservation holders of the Fisker Ocean all-electric SUV to retain their access to the existing $7,500 federal tax credit should Congress pass the Inflation Reduction Act of 2022 and President Biden signs the legislation into law.

Qualifying reservation holders in the United States are eligible for a $7,500 tax credit under existing law, but the proposed legislation, as currently drafted, would make the Fisker Ocean, which is built in Austria, ineligible.

The company believes that by converting customer reservations into binding sales contracts to purchase the Fisker Ocean SUV will allow U.S. based customers to retain their eligibility for the full $7,500 tax credit.

Company Chairman and CEO Henrik Fisker commented: "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.” 

In the United States, the Fisker Ocean starts at $37,499 for the base Sport package. The Ultra trim package retails for $49,999 and the top trim Extreme package is priced at $68,999. The five-passenger SUV is designed and engineered in Manhattan Beach, California.

The company has reaffirmed its production start date for November 2022 and has guided to produce 40,000-50,000 Fisker Ocean units in 2023.

Shares of Fisker trade on the NYSE under the ticker symbol FSR.