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

[R1Sky Business]

By the time this bill passes or not....this thread will have 777 posts.

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[Friscorays]

Sent an inquiry to Rivian customer service about the possibility of entering into a binding purchase agreement before the end of the year for customers effected by vehicle price cap and / or income cap should new legislation become law.

I don't know what the odds are of a substantive response but will update if I hear anything helpful back.

 

[TXR1S]

Sent an inquiry to Rivian customer service about the possibility of entering into a binding purchase agreement before the end of the year for customers effected by vehicle price cap and / or income cap should new legislation become law.

I don't know what the odds are of a substantive response but will update if I hear anything helpful back.

If it passes the senate, it becomes a full court press / everyone email RJ situation in my book.

 

[mabowden]

So my R1S build right now is $83,625. You guys think it would be wise for me to remove ~$4K worth of stuff, say my Forest Edge interior and All terrain wheels/tires to get me under $80K? If not, those ~$4K worth of options would end up costing me almost $12K by losing the tax credit?

If it goes into place as is, I personally would heavily consider it, but wait to make a decision until everything is signed.

 

[Jac]

I have seen a lot of discussion about the MSRP and income limits in the proposed legislation, but I’m interested if anyone knows whether Rivian‘s current R1 batteries’ mineral source and battery component origin likely will or likely won’t pass the legislation’s requirements for full or even partial tax credit eligibility for R1 sales after 2022. If not, the MSRP and income provisions won‘t matter.

https://www.bloomberg.com/news/arti...bar-for-tesla-and-gm-electric-car-tax-credits

 

[R1Sky Business]

I have seen a lot of discussion about the MSRP and income limits in the proposed legislation, but I’m interested if anyone knows whether Rivian‘s current R1 batteries’ mineral source and battery component origin likely will or likely won’t pass the legislation’s requirements for full or even partial tax credit eligibility for R1 sales after 2022. If not, the MSRP and income provisions won‘t matter.

Great point

 

[R1Sky Business]

I have seen a lot of discussion about the MSRP and income limits in the proposed legislation, but I’m interested if anyone knows whether Rivian‘s current R1 batteries’ mineral source and battery component origin likely will or likely won’t pass the legislation’s requirements for full or even partial tax credit eligibility for R1 sales after 2022. If not, the MSRP and income provisions won‘t matter.

Was the battery components' origin part of last year's foiled bill???

 

[electruck]

I have seen a lot of discussion about the MSRP and income limits in the proposed legislation, but I’m interested if anyone knows whether Rivian‘s current R1 batteries’ mineral source and battery component origin likely will or likely won’t pass the legislation’s requirements for full or even partial tax credit eligibility for R1 sales after 2022. If not, the MSRP and income provisions won‘t matter.

Addressed earlier in this thread. The short answer is no, we don't know. And we won't know until either Rivian or the government tell us.

 

[Jac]

Was the battery components' origin part of last year's foiled bill???

I am pretty sure this is new. The earlier proposal had the union labor construction requirement for full tax credit eligibility That is gone from this proposed legislation.

 

[Zoidz]

Confused about the highlighted part? So is it $150k or $300k for joint filers?

"There's a POSSIBLE clue hidden in the wording regarding the tax credit - it says "The full EV tax credit will be available to individuals reporting adjusted gross incomes of $150,000 or less, $300,000 for joint filers."

KEYWORD: FULL

Some tax credits are called Phase Out tax credits where if you are over the limit, there is a formula that decreases the credit as your income increases. For example, for every $1000 over the limit, $100 is deducted from the tax credit.

Here's how it works for the child tax credit:

• Eligibility: Families with MAGIs less than $75,000 for single taxpayers, $112,500 for heads of household and $150,000 for married couples filing jointly were eligible for a full 2021 credit of $3,600 for each child under 6 and $3,000 for children under 18. (You may have received half of your available credit as monthly advance payments from July to December 2021.)
• Phase-out range: If your 2021 income exceeded the limits listed above, your child tax credit would be reduced by $50 for every $1,000 of income over the limit. A single mom who earned $80,000, for example, would receive a tax credit of $2,750 for her qualifying middle schooler: $3,000 - ($50 x 5) = $2,750"

You're confused because you are not reading carefully. Your first red highlight is the wording in the proposed EV tax credit. Your second red highlight is a REAL WORLD EXAMPLE OF A PHASED CHILD TAX CREDIT.

 

[Nuclianba]

Ok, interesting- didn’t know they were non binding.

Time for a revision to make them binding with a TEN (!!) dollar penalty if either party breaches the agreement.

Would love somebody with a legal degree to comment on this. My untrained eye sure thinks the PBA is binding. The guides describe them as less than binding, probably to encourage signing them, but the legalese suggests otherwise. It states on the first page in all caps that "THIS AGREEMENT CREATES A BINDING LEGAL CONTRACT". A paragraph later: "You agree to purchase the Vehicle as described in your saved configuration as of the date of this Agreement from Rivian, LLC. or its affiliate". No termination provisions for the order for me I can find. Contractually requires Rivian to sell at the prices as of the date of the agreement. They have outs from the contract but they can't terminate for convenience, only if they discontinued the configuration I've ordered. If I fail to take delivery, I'm responsible for any and all costs related to the failure to accept.


This matters to me as I'm a Max pack reservation holder who got a guide and signed a PBA a couple months ago. Would be great to know that although my truck isn't showing up until 2023 (saying a prayer) my PBA from June should grandfather me in to the old credit....

 

[Siguy90]

I was playing around with my config and if I choose FG/FE, 20" Dark AT and powered tonneau my config comes out to exactly $80,000. I am confused on the wording but is the credit only for SUV/pickups up to $80,000, or is it up to and including $80,000?

APPLICABLE LIMITATION.—For purposes of subparagraph (A), the applicable limitation for each vehicle classification is as fo1lows: PICKUP TRUCKS.—In the case of a pickup truck, $80,000.

The way I am reading that is that $80k is the limit so it should be fine if the car is configured to be exactly $80k. If not then I hope Rivian can discount my order by $1 lol

 

[ads75]

Sent an inquiry to Rivian customer service about the possibility of entering into a binding purchase agreement before the end of the year for customers effected by vehicle price cap and / or income cap should new legislation become law.

I don't know what the odds are of a substantive response but will update if I hear anything helpful back.

People who don’t have their truck yet will go from “I put down a $1000 and don’t have a truck yet!” to the next phase of “I’m an early IPO investor and don’t have a truck yet” to “I’ve had a binding purchase agreement for 6 months and don’t have a truck yet!

Seems like it would be a headache for Rivian, or any other manufacturer, in a world of unknown supply chain issues.

 

[Nuclianba]

People who don’t have their truck yet will go from “I put down a $1000 and don’t have a truck yet!” to the next phase of “I’m an early IPO investor and don’t have a truck yet” to “I’ve had a binding purchase agreement for 6 months and don’t have a truck yet!

Seems like it would be a headache for Rivian, or any other manufacturer, in a world of unknown supply chain issues.

Totally agree, but they have done this already, so there is a precedent. I'm a Max pack holder with a 1H2023 estimated date (crosses fingers) but got a guide and started the 8 step process a couple months ago. I still don't really understand why they had me sign a PBA despite the truck being at least 8+months out at the time (their outreach was out of the blue)... My best guess was that they were trying to see how firm max holders really were and how many would switch to large if given the outreach and how many would sign a PBA for a Max pack. But I bring it up because they apparently have been willing to issue a PBA for folks with 2023 delivery dates. How many of us in this boat I don't know.

 

[Acoustic71]

Sometimes you have to be the adult in the room...

Being the so-called adult in the room is how our planet got to this point in the first place.

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