2024 Tax credit

[SANZC02]

Rivian will only be eligible for $3750 in 24' (unless leased) and my understanding is that it is a rebate not a credit so we should be able to receive full amount regardless of tax burden. But I may be wrong as well..

According to this list from investors.com it is still a non-refundable credit (#9 on the list). It does seem like the dealers can advance the credit and get paid back by the IRS but if you do not qualify at the end of the year seems like you would have pay the credit back to the dealer. You would have to meet the income limits as well as need to have a tax liability greater than the rebate to qualify.

Ten Most Important EV Tax Credit Rules In 2024
Here are the 10 most important things to know about the 2024 EV tax credits as of Jan. 1:

1. A tax credit of up to $7,500 is available on new and used EVs that meet certain criteria.
2. The amount of the tax credit depends on where the EVs are made, where their battery components and minerals come from, how much they cost, and the buyer's annual income.
3. The credit will be available for eligible buyers as a discount at the dealership when they buy the vehicle. No more waiting for tax season.
4. To qualify, the EV must be manufactured in North America and have an MSRP below $80,000 for an SUV and $55,000 for a sedan, wagon, or hatchback.
5. To qualify for the first $3,750, some of the EV's battery components must be produced or assembled in North America.
6. To get another $3,750 (for the full $7,500 tax credit) a portion of the critical minerals in the EV battery must be mined or processed in the U.S. The minerals also could come from a country that is a U.S. free-trade agreement partner. Or, they must have been made from materials recycled in North America.
7. The percentages of the components or minerals that need to be sourced under those rules go up every year, beginning this year.
8. Starting in 2024, EVs with components from countries that have been designated "foreign entities of concern" (FEOC) will no longer be eligible for a tax credit. FEOC includes entities that are owned by, controlled by or subject to the jurisdiction or direction of a government of a foreign country that is a covered nation. Covered nations currently include China, Russia, Iran, and North Korea.
9. The tax credit is nonrefundable.
10. Check to be certain your dealer can give you the EV Tax credit. The dealer must be registered on a new platform, IRS Energy Credits Online, for a buyer to receive a point-of-sale EV tax credit.

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[UnsungZero_OldTimeAdMan]

Do you have more than $7500 in 2024 tax liability? I think it's still a tax credit and even if you get it at the POS you would have to pay some back if you don't have $7500 in tax liabilities. But I could be wrong.

I think you are confusing and mixing IRA and pre-IRA (with binding agreement) claim terms. Without binding agreement, signed before IRA became law, in 2024 there is no way to get $7500 "back" unless you are leasing. And starting the first of this year, any deduction from the purchase price can be a point-of-sale rebate (not tax credit). And if purchasing, if you meet all requirements, you only stand to get $3750 off (nothing to do with total tax liability).

 

[emoore]

I think you are confusing and mixing IRA and pre-IRA (with binding agreement) claim terms. Unless leasing in 2024 (under IRA terms), there is no way to get $7500 "back". And starting the first of this year, any deduction from the purchase price can be a point-of-sale rebate (not tax credit).

You're right. I forgot about leasing.

 

[Mark_AZR1T]

I've been trying to nail down Rivian with an answer as to whether they will be providing POS rebate in 24. Crickets so far..
Pre-price hike holder.

A few manufacturers and dealers who applied for the point of sale direct rebate (buy and get the reduction on the spot) are functioning now. Since Rivian hasn't committed, I imagine they need the upfront purchase price locked into their revenue stream......

POS credit on the spot is a big deal. I have a huge solar credit this year on taxes, so I would prefer an POS credit on the spot.

 

[SomeCleverName]

How much would a purchased (not leased) Rivian qualify for given where they source their materials?

$3,750

 

[CharonPDX]

Summary:

• At present, Rivian vehicles qualify for a maximum of $3750 in federal tax credit.
• The vehicle must have a maximum price of $80,000.
• There are income limits.
• While starting Jan 1, the credit is available at time-of-purchase, the seller (dealer or direct-sale company) must jump through hoops to offer it at time of purchase. Rivian has not done this
• For vehicles you didn't get "time of purchase" on (Rivian,) you claim it when you file your 2024 taxes in early 2025.

This applies to any vehicle you take delivery of Jan 1, 2024 or later - EXCEPT….

If you still have an unfilled preorder from before the Inflation Reduction Act was passed (August 2022) *AND* signed the "Binding Purchase Agreement", then you don't claim the tax credit this year, you file an amended 2022 return once you take possession of the vehicle.

One huge advantage the "time of purchase" application of the credit has is that while the "maximum income" limit still applies (you have to provide evidence of income to the dealer/seller) if you are low income, you get the full credit, even if you wouldn't have enough of a tax burden to take full advantage.

 

[booslim45]

Has anyone done the point of sale $3,700 rebate with Rivian?

 

[Codawg]

I'm about to take delivery but so far Rivian is not prepared to offer POS rebate, so we are on our own to claim end of year. Could change in coming months though.

 

[Len]

I've been trying to nail down Rivian with an answer as to whether they will be providing POS rebate in 24. Crickets so far..
Pre-price hike holder.

Just talked to my Rivian Guide. Rivian does not do POS rebates in 2024. It’s a big disappointment!

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