No tax credit for Rivian (effective April 18, 2023)

[jakef801]

How wonderful for you

Yes, it is. Why the smartass, unnecessary comment?

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[sillyME]

What about those who signed the blinding contract last yr, for their intended purchase of vehicle below msrp $80k?

 

[Hillbilly]

Yes, it is. Why the smartass, unnecessary comment?

Because yours was the definition of unnecessary.

Why did you post at all?

 

[Jac]

What about those who signed the blinding contract last yr, for their intended purchase of vehicle below msrp $80k?

If you signed the binding purchase agreement you should be subject to the prior EV tax credit law. The previous law did not have any MSRP cap or income cap or domestic assembly requirement, or battery component/mineral sourcing requirements.

Rivian sent the invitation to sign the binding purchase agreement to us on August 10 by email so we could sign it electronically from anywhere in the world with internet access.

 

[jakef801]

Because yours was the definition of unnecessary.

Why did you post at all?

I was essentially thanking the guy who sent me the link above my post and letting others in my position know that they're good as well.

 

[electruck]

What about those who signed the blinding contract last yr, for their intended purchase of vehicle below msrp $80k?

Not impacted, a valid BPA (edit: signed before Aug 16, 2022) shifts the in-service date to 2022 for tax purposes. The credit goes away for those without a BPA and take delivery on or after 4/18.

 

[ace008]

For those with the that singed the binding contracts, does that still mean we need to file an amended 2022 tax return if we already filed for the year? Or is there an option to get it in the 2023 return when we file next year?

Anyone have instructions on how to do this in Turbotax? What in service date and any other things we need to get the credit?

 

[Hillbilly]

I was essentially thanking the guy who sent me the link above my post and letting others in my position know that they're good as well.

Read the room. Lots of potential buyers will be affected negatively buy this news. That's a lot of money that will affect people who have been waiting with reservations and skipping out on buying other eligible vehicles. Not the place to say "I'm good"

 

[Oldsmobile_Mike]

Thank you. I'm good on Tax Credit!

Um. Good for you? Ever give a thought about the rest of us? ??

 

[jollyroger]

I'm trying to understand why Rivian is no longer eligible:

The IRA requires 50% of the value of battery components be produced or assembled in North America to qualify for $3,750, and 40% of the value of critical minerals sourced from the United States or a free trade partner for a $3,750 credit.

I don't understand why Rivian doesn't hit the first one since the battery pack is assembled in North America right? (Maybe I don't understand "or" in the legal sense, in IT it means the condition is true if either side of the or statement is true)

 

[mikehmb]

For those with the that singed the binding contracts, does that still mean we need to file an amended 2022 tax return if we already filed for the year? Or is there an option to get it in the 2023 return when we file next year?

Anyone have instructions on how to do this in Turbotax? What in service date and any other things we need to get the credit?

This should break down into 3 distinct phases:
1) Took delivery in 2022 - PBA or otherwise
2) Took delivery prior to filing - with PBA
3) Haven’t yet taken delivery - with PBA

1 is obvious. 2 means you file and submit your PBA and signed contracts / receipt of vehicle. 3 means you’ll need to amend if you’ve already filed.

There’s some mystery (to me) as to how the income caps work if you signed a PBA but haven’t yet taken delivery, but I think that still falls under (3), as I don’t think they retroactively altered income eligibility.

I suppose there’s an option where you file an extension, then when you get your truck, file your taxes, so you can skip the Amendment requirement.

I am not an accountant, not a tax expert, or really know anything about the space except what I had to learn to make sure my own a** was covered.

 

[Dark-Fx]

Um. Good for you? Ever give a thought about the rest of us? ??

You already got your truck so you're otherwise eligible (unless your AGI is too high)

 

[pricedm]

For those with the that singed the binding contracts, does that still mean we need to file an amended 2022 tax return if we already filed for the year? Or is there an option to get it in the 2023 return when we file next year?

Anyone have instructions on how to do this in Turbotax? What in service date and any other things we need to get the credit?

As others have said here, if you have a binding sales agreement, the date you signed (August xx, 2022) is, according to IRS rules, the date your R1T/S went into service. So the "up to" $7,500 tax credit applies to your 2022 federal tax return.

No, you cannot apply the BSA to 2023 tax returns, only 2022.

 

[Autolycus]

As others have said here, if you have a binding sales agreement, the date you signed (August xx, 2022) is, according to IRS rules, the date your R1T/S went into service. So the "up to" $7,500 tax credit applies to your 2022 federal tax return.

You should enter 8/15/2022 if you are using the transition rule, regardless of the date you signed the "written binding contract" to purchase the vehicle.

Here's the relevant paragraph in the instructions for the Form 8936:

Transition rule.


If you purchased, or entered into a written binding contract to purchase, a qualified plug-in electric drive motor vehicle after 2021 and before August 16, 2022, you may elect to treat such vehicle as having been placed in service on August 15, 2022, the day before the enactment date of the Inflation Reduction Act of 2022.

 

[who764]

It seems that the list will continually be updated. From the NYT:

Ten vehicles that previously qualified, including the Nissan Leaf and the Volkswagen ID.4, will drop off the list, at least temporarily.

The Volkswagen ID.4, an S.U.V. made in Chattanooga, Tenn., did not make the list issued by the Treasury Department on Monday because it is still assessing its supply chain. But Pablo Di Si, the chief executive of Volkswagen Group of America, said he expected the model to qualify.

It doesn't make too much sense to me why the Rivians (and U.S. made VW) doesn't qualify for at least half of the $7,500. The only requirement for one side of the $3,750 is "final assembly."

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