Latest EV tax credit status (as of 12/30/22) - summary by NYT

[theyoungone]

A typical pre-March 1 R1S with a paint option, wheel option and reinforced underbody protection is over $80,000.

And I’m still waiting on someone to say they don’t want it, take delivery & the tax credit, and then sell it to me ?

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[R1Sky Business]

I agree with @COdogman (see reply #20) on this question. Based on what we know now, my take is it is prudent to assume the signed binding purchase agreement won’t fly with the IRS — and be pleasantly surprised if it turns out later we all qualify for the $7500 tax credit on our 2023 tax year returns on R1 vehicles delivered in 2023.

Pleasant surprise coming up...

 

[MooreND23]

So pardon my ignorance and I acknowledge the first world problems here but, what is everyone’s assumption of the EV Credit for those of us who signed a BPA for an R1S order pre price hike but exceed newly passed income limits for next year? Wife’s R1S is at $80500 (midnight with 22” black wheels). Wheels put us over the $80K but may not matter if the income limits negate the credit regardless. Not sure if people assume the BPA locks us in to the prior EV credit rules. Or should we go change the wheels to 22” sport bright and have them powder coated post arrival. Don’t want to affect the April-June delivery window though. Thanks everyone.

 

[Jac]

So pardon my ignorance and I acknowledge the first world problems here but, what is everyone’s assumption of the EV Credit for those of us who signed a BPA for an R1S order pre price hike but exceed newly passed income limits for next year? Wife’s R1S is at $80500 (midnight with 22” black wheels). Wheels put us over the $80K but may not matter if the income limits negate the credit regardless. Not sure if people assume the BPA locks us in to the prior EV credit rules. Or should we go change the wheels to 22” sport bright and have them powder coated post arrival. Don’t want to affect the April-June delivery window though. Thanks everyone.

If the BPA is accepted by the IRS for 2023 deliveries the MSRP cap, income cap and battery sourcing requirements won’t apply as these qualification hurdles didn’t exist in the prior EV tax credit law. If the BPA is not accepted by the IRS and you are over the income cap in the new EV law, you are ineligible for the tax credit so the MSRP is irrelevant.

 

[zefram47]

Ideally that is what will happen. It’s still up to the IRS and each state whether they will honor that agreement.

And this is one reason I said to hell with Max pack and dropped down to Quad+Large. My current config has an MSRP at $79,300 so I'll qualify no matter what. But I had to say bye-bye to the factory PPF to get down there. Assuming the BPA doesn't work, it would mean the delta in price for Max pack is actually $12.5-15.5k, not the $5.5-8k the MSRP would suggest...and all for 30 kWh vs the 45 kWh we were originally told (most likely).

 

[COdogman]

And this is one reason I said to hell with Max pack and dropped down to Quad+Large. My current config has an MSRP at $79,300 so I'll qualify no matter what.

Perfect. I never had the max pack officially in my order, but I was considering it until I saw that new credit. My order is sitting at $77,500 right now because I went with The “free” silver paint

 

[Thedude]

Battery and raw materials I can see but man that vehicle purchase limit of 80K is DUMB

If you can afford an $80k vehicle you don’t need your lifestyle subsidized by American taxpayers.

 

[zefram47]

If you can afford an $80k vehicle you don’t need your lifestyle subsidized by American taxpayers.

Need? Maybe not, but I'm sure as hell not leaving it on the table if the option exists.

 

[Thedude]

Need? Maybe not, but I'm sure as hell not leaving it on the table if the option exists.

Agreed, I’m taking advantage of it since it is offered but fully support the price cap and wouldn’t have been mad if it wasn’t available when I bought mine.

 

[Jac]

And this is one reason I said to hell with Max pack and dropped down to Quad+Large. My current config has an MSRP at $79,300 so I'll qualify no matter what. But I had to say bye-bye to the factory PPF to get down there. Assuming the BPA doesn't work, it would mean the delta in price for Max pack is actually $12.5-15.5k, not the $5.5-8k the MSRP would suggest...and all for 30 kWh vs the 45 kWh we were originally told (most likely).

Are you assuming the battery component sourcing isn’t going to be a problem for Rivian vehicles to qualify for the $7500 federal tax credit? Not sure I understand why you will qualify for the credit “no matter what” because your MSRP is only $79,300.

 

[jjswan33]

Was reading this, obviously Fox Business so take the opinion part as you wish.

Does seem like a pretty easy loophole, so far Rivian hasn't offered any leasing options but who knows.

https://www.foxbusiness.com/politic...ng-pricey-sports-cars-eligible-ev-tax-credits

 

[cjones1130]

Need? Maybe not, but I'm sure as hell not leaving it on the table if the option exists.

This

 

[zefram47]

Are you assuming the battery component sourcing isn’t going to be a problem for Rivian vehicles to qualify for the $7500 federal tax credit? Not sure I understand why you will qualify for the credit “no matter what” because your MSRP is only $79,300.

There's been talk of the battery sourcing requirement to take effect in 2024 for one since literally zero manufacturers qualify as-is. This article also mentions the possibility of batteries assembled in the USA to qualify initially, and Rivian's packs are assembled in the Normal factory.

 

[cjones1130]

A typical pre-March 1 R1S with a paint option, wheel option and reinforced underbody protection is over $80,000.

Was referencing a R1T, pretty easy to get it under 80k pre-price hike esp now that the powered cover is (pretty much) dead.

 

[TexasCrane]

If you can afford an $80k vehicle you don’t need your lifestyle subsidized by American taxpayers.

I pay… a lot… in federal income taxes. I have no problem getting $7500 back.

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