Tax Credit Changes in new bill [LOCKED DUE TO POLITICS & ARGUING]

[AxelR]

So higher interest rates.
Most likely no tax deduction.
The Rivian is looking better and better by the minute
Also the definition of MSRP is not clear. Mine will be over 80k.

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[ThatRivianGuy]

Am I reading this right? Would this mean if we purchased the truck in 2022 the new law would apply to us? As part of the transition from the old system to the new one.


TRANSITION RULE.—Solely for purposes of the
21 application of section 30D of the Internal Revenue Code
22 of 1986, in the case of a taxpayer that—
23 (1) after December 31, 2021, and before the
24 date of enactment of this Act, purchased, or entered
25 into a written binding contract to purchase, a new 387 ERN22335 9K1 S.L.C. 1 qualified plug-in electric drive motor vehicle

Id say no because of the other text around what you copied. This section says that if you made a binding agreement before 12/31/2022 AND put it in service in 2023 that you MAY use the old rules. Since you bought in 2022, and how the law is written now, I bet you’d get the old rules rebate. Not the new one. But things can change.

 

[Carmelbythesea]

Id say no because of the other text around what you copied. This section says that if you made a binding agreement before 12/31/2022 AND put it in service in 2023 that you MAY use the old rules. Since you bought in 2022, and how the law is written now, I bet you’d get the old rules rebate. Not the new one. But things can change.

I’m fine with either way. I’m in the sweet spot. I would enjoy a sweet little tax refund.

 

[Cogentfire]

Sounds like there will be changes in the new bill to income thresholds. Wonder what they may be.

https://www.cnn.com/2022/07/27/politics/schumer-manchin-deal-build-back-better/index.html

Does the $80k cap mean that if you go over then no rebate at all?

 

[shrink]

Elektrek seems to have parsed out the draft language:

https://electrek.co/2022/07/27/senate-moves-forward-ev-tax-credit-reform-tesla-tsla/

• Federal tax credit for EVs maintained at $7,500
  • Eliminates tax credit cap after automakers hit 200,000 EVs sold, making GM and Tesla once again eligible
  • The language in the bill indicates that the tax credit would be implemented at the point of sale instead of on taxes.
  • In order to get the full credit, the electric vehicle needs to be assembled in North America, the majority of battery components need to come from North America, and contain a certain percentage of minerals from countries with free trade agreements with the US.
• A new federal tax credit of $4,000 for used EVs
• Zero-emission vans, SUVs, and trucks with MSRPs up to $80,000 qualify
• Electric sedans priced up to $55,000 MSRP qualify
• The full EV tax credit will be available to individuals reporting adjusted gross incomes of $150,000 or less, $300,000 for joint filers

 

[Rivian_Hugh_III]

Disclaimer: IANAL

But based on my understanding of this section, I really want to sign a binding written purchase agreement RFN.

I’m wondering if the $1000 pre-order is a "written binding contract to purchase"…. If so, then all of us may make it under the wire.

I’m also wondering about the definition of MSRP. I recall lots of pixels dedicated to the ideation last year. In the end I wasn’t ever sure whether certain options counted against MSRP or not (Max Pack, Color, Wheels, Trim, Accessories).

 

[McMoo]

I’m wondering if the $1000 pre-order is a "written binding contract to purchase"…. If so, then all of us may make it under the wire.

I doubt it since it’s fully refundable. Maybe Rivian could come up with something for everyone that has a pre-order that would count but it would have to be done s00n so that’s highly unlikely.

 

[Jac]

Does the $80k cap mean that if you go over then no rebate at all?

Assuming the income caps don’t affect you, it does appear a configuration MSRP over $80,000 will disqualify you. Many pre-March 1 reservation holders will want to revisit their current configuration if they are just over $80,000. Suddenly, it appears that reinforced underbody shield that pushed my configuration over $80,000 would, in effect, cost me another $7500. I’m also unclear if the tax credit for Rivian R1Ts and R1S’s will be the full $7500, in any case, given how Rivian currently sources batteries.

 

[Engi_Nerd]

I personally worry about the language around sourcing a sufficient percentage of battery materials in North America.

 

[Sgt Beavis]

Worse case, I need to remove Rivian Blue as my main color.
Best case, I buy the extras (charger, crossrails, floor mats) separate from the truck.

It all depends on the MSRP definition and when this kicks in. I slipped under the income threshold.

 

[kurtlikevonnegut]

Worse case, I need to remove Rivian Blue as my main color.
Best case, I buy the extras (charger, crossrails, floor mats) separate from the truck.

It all depends on the MSRP definition and when this kicks in. I slipped under the income threshold.

I doubt the accessories count against MSRP. They are taxed differently on the sales contract and listed separately from the car and options section, so I'm sure your can differentiate them when it comes time to claim.

 

[Sgt Beavis]

I doubt the accessories count against MSRP. They are taxed differently on the sales contract and listed separately from the car and options section, so I'm sure your can differentiate them when it comes time to claim.

My experience has been, if it’s on the sticker it’s part of MSRP. Now if Rivian is selling them separately, then we’re good to go.

But Rivian is kinda screwed with the post March 1st pricing. They need to get that dual motor, shorter range model in production quickly.

 

[astonius]

Hopefully Sinema blocks this

 

[McMoo]

Hopefully Sinema blocks this

She was opposed to tax rate hikes on individuals and corporations but in support of a minimum corporate tax so if this is just a minimum tax she may be on board.

 

[R1Sky Business]

Elektrek seems to have parsed out the draft language:

https://electrek.co/2022/07/27/senate-moves-forward-ev-tax-credit-reform-tesla-tsla/

• Federal tax credit for EVs maintained at $7,500
  • Eliminates tax credit cap after automakers hit 200,000 EVs sold, making GM and Tesla once again eligible
  • The language in the bill indicates that the tax credit would be implemented at the point of sale instead of on taxes.
  • In order to get the full credit, the electric vehicle needs to be assembled in North America, the majority of battery components need to come from North America, and contain a certain percentage of minerals from countries with free trade agreements with the US.
• A new federal tax credit of $4,000 for used EVs
• Zero-emission vans, SUVs, and trucks with MSRPs up to $80,000 qualify
• Electric sedans priced up to $55,000 MSRP qualify
• The full EV tax credit will be available to individuals reporting adjusted gross incomes of $150,000 or less, $300,000 for joint filers

So the battery stipulation takes Rivian out of it?

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