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

[Autolycus]

Well, I guess my interest in staying under $80k MSRP was gone just for a couple days. Still plan to file an amended 2022 return based on the pre-August 15 purchase agreement, but I'll feel better if I have the backup worst-case of getting $3750 in 2023.

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[Friscorays]

Let's go Rivian... time to source battery materials locally!!!!

".....a spokesperson told WGLT on Wednesday that it’s hoping its eligibility is restored soon.

“Rivian has submitted updated documentation to the IRS stating that its 2023 R1T and R1S models qualify for the critical minerals sourcing criteria within the Section 30D Clean Vehicle Tax Credit which took effect on April 18, 2023. We expect this eligibility to be reflected on the IRS website pending future updates,” the Rivian spokesperson said."

https://www.wglt.org/local-news/202...artial-eligibility-restored-for-ev-tax-credit

 

[Autolycus]

".....a spokesperson told WGLT on Wednesday that it’s hoping its eligibility is restored soon.

“Rivian has submitted updated documentation to the IRS stating that its 2023 R1T and R1S models qualify for the critical minerals sourcing criteria within the Section 30D Clean Vehicle Tax Credit which took effect on April 18, 2023. We expect this eligibility to be reflected on the IRS website pending future updates,” the Rivian spokesperson said."

https://www.wglt.org/local-news/202...artial-eligibility-restored-for-ev-tax-credit

Interesting. I assumed they would meet the battery component requirement based on assembling the modules and packs in the US, but it seems like they don't meet that one but do meet the battery mineral requirement.

The price caps are going to make it harder for post-hike buyers to get any credit on R1s, but long term, it's going to be critical for Rivian to get full credits on the R2 line. For 2026, that will mean 70% of the value of battery components needs to be from NA and 70% of the minerals need to be from US or free trade partner. 2027 those will both jump to 80%, and 2028 the components requirement will go to 90%.

 

[R1Sky Business]

".....a spokesperson told WGLT on Wednesday that it’s hoping its eligibility is restored soon.

“Rivian has submitted updated documentation to the IRS stating that its 2023 R1T and R1S models qualify for the critical minerals sourcing criteria within the Section 30D Clean Vehicle Tax Credit which took effect on April 18, 2023. We expect this eligibility to be reflected on the IRS website pending future updates,” the Rivian spokesperson said."

https://www.wglt.org/local-news/202...artial-eligibility-restored-for-ev-tax-credit

As long as it wasn't Tony

 

[Cascadian]

Glad they qualify for mineral content. What do they need to do to qualify for pack content?

 

[R1Sky Business]

".....a spokesperson told WGLT on Wednesday that it’s hoping its eligibility is restored soon.

“Rivian has submitted updated documentation to the IRS stating that its 2023 R1T and R1S models qualify for the critical minerals sourcing criteria within the Section 30D Clean Vehicle Tax Credit which took effect on April 18, 2023. We expect this eligibility to be reflected on the IRS website pending future updates,” the Rivian spokesperson said."

https://www.wglt.org/local-news/202...artial-eligibility-restored-for-ev-tax-credit

If id4 just got added to list. It's only a matter of time The R1s will follow.

 

[Cascadian]

They are now listed at fueleconomy.com

 

[R1Sky Business]

They are now listed at fueleconomy.com

But only half credit

 

[rickybobbyaz]

Updated: April 19, 2023 at 9:42 PM CDT

A few hours after this story was published, the IRS website was updated to restore Rivian's eligibility for a portion of the tax credit.

 

[rickybobbyaz]

Updated: April 19, 2023 at 9:42 PM CDT

A few hours after this story was published, the IRS website was updated to restore Rivian's eligibility for a portion of the tax credit.

Pending the government’s review of that documentation, Rivian customers would be eligible for a partial tax credit of $3,750. (To be eligible for the $3,750 critical minerals portion of the tax credit, the percentage of the value of an EV battery’s critical minerals that are extracted or processed in the U.S. or a U.S. free-trade agreement partner or recycled in North America must be at least 40% for 2023, rising to 80% in 2027 and beyond.)

https://www.wglt.org/local-news/202...artial-eligibility-restored-for-ev-tax-credit

 

[DucRider]

AFAIK, Rivian is not supplying customers with purchases in 2023 the documentation required to claim the credit. At least I have been unsuccessful in my attempts. Anyone get the required report?

SECTION 5. SELLER’S REPORTS
.01 Required Reports under Sections 30D and 25E. For purposes of § 30D(d)(1)(H), the person who sells any vehicle to the taxpayer or, for purposes of § 25E(c)(1)(D)(i), the dealer (as defined in § 30D(g)(8)) who sells any vehicle to the taxpayer, as applicable, (collectively, Seller) must furnish a report to the taxpayer and the IRS, at such time and in such manner as the Secretary provides containing information that is listed in this section 5.01. Accordingly, for vehicle sales occurring in calendar year 2023 or later, the Seller must provide the report to the taxpayer not later than the date the vehicle is purchased and must submit the report to Secretary within fifteen (15) days of the end of the calendar year containing the following:
(1) The name and taxpayer identification number of the Seller;
(2) The name and taxpayer identification number of the taxpayer;
(3) The vehicle identification number of the vehicle, unless, in accordance with any applicable rules promulgated by the Secretary of Transportation, the vehicle is not assigned such a number;
(4) The battery capacity of the vehicle;
(5) Only for sales of new clean vehicles, verification that original use of the vehicle commences with the taxpayer;
(6) The date of sale, sale price of the vehicle, and maximum credit under § 30D or § 25E, as applicable, allowable to the taxpayer with respect to the vehicle;
(7) For sales after December 31, 2023, in the case of a taxpayer who makes an election to transfer the credit to an eligible entity under § 30D(g)(1), any amount paid or otherwise allowable as a partial payment or down payment to the taxpayer; and
(8) A declaration applicable to the report signed by a person currently authorized to bind the Seller in these matters, in the following form: “Under penalties of perjury, I declare that I have examined this report submitted to the IRS pursuant to Revenue Procedure 2022-42 by [insert name of Seller], and to the best of my knowledge and belief I certify that this report is true, correct, and complete.” This written report must be provided to the IRS in the time and manner described in section 6.03 of this revenue procedure.

 

[robertrivian]

It looks like we are now under the income and MSRP if we want the credit from the BPA. I saw this from the Fueleconomy.gov website this morning. Not the last part:

If I purchased or entered into a written binding contract to purchase my new clean vehicle after December 31, 2021, and before August 16, 2022, and placed it in service after December 31, 2022, what requirements apply and on what tax year’s return can I claim the new clean vehicle credit?
If you purchased or entered into a written binding contract to purchase a new clean vehicle after December 31, 2021, and before August 16, 2022, but took possession on or after August 16, 2022, you may claim the credit based on the requirements for the credit that applied on August 15, 2022. To do so, you are required to claim the credit on a tax return for tax year 2022. Depending on the date the vehicle is placed in service, you may claim the credit on an original, superseding, or amended return for tax year 2022.
Taxpayers may not claim the credit before they take possession of the vehicle. While taxpayers should file when they are ready, they should avoid filing prematurely. If you have not received the vehicle before your original tax filing deadline and you have the option, consider applying for an automatic extension of time to file your return.
If you have not yet filed your tax return for tax year 2022 at the time you take possession of your new clean vehicle, you may claim the credit on your original 2022 tax return. If you have already filed your tax return for tax year 2022 at the time you take possession of the new clean vehicle, you may file an amended tax return for tax year 2022 and claim the credit. Generally, taxpayers must file an amended return within three years after the date the original return was filed or within two years after the date they paid the tax, whichever is later.
The income and MSRP limitations apply to any vehicle that is placed in service (delivered to the taxpayer) in 2023.

https://fueleconomy.gov/feg/taxfaqs.shtml

and look for the the answer to this question:
If I purchased or entered into a written binding contract to purchase my new clean vehicle after December 31, 2021, and before August 16, 2022, and placed it in service after December 31, 2022, what requirements apply and on what tax year’s return can I claim the new clean vehicle credit?

 

[linkwpc]

Well, I guess my interest in staying under $80k MSRP was gone just for a couple days. Still plan to file an amended 2022 return based on the pre-August 15 purchase agreement, but I'll feel better if I have the backup worst-case of getting $3750 in 2023.

I'm thinking the same way.

 

[Autolycus]

It looks like we are now under the income and MSRP if we want the credit from the BPA. I saw this from the Fueleconomy.gov website this morning. Not the last part:

If I purchased or entered into a written binding contract to purchase my new clean vehicle after December 31, 2021, and before August 16, 2022, and placed it in service after December 31, 2022, what requirements apply and on what tax year’s return can I claim the new clean vehicle credit?
If you purchased or entered into a written binding contract to purchase a new clean vehicle after December 31, 2021, and before August 16, 2022, but took possession on or after August 16, 2022, you may claim the credit based on the requirements for the credit that applied on August 15, 2022. To do so, you are required to claim the credit on a tax return for tax year 2022. Depending on the date the vehicle is placed in service, you may claim the credit on an original, superseding, or amended return for tax year 2022.
Taxpayers may not claim the credit before they take possession of the vehicle. While taxpayers should file when they are ready, they should avoid filing prematurely. If you have not received the vehicle before your original tax filing deadline and you have the option, consider applying for an automatic extension of time to file your return.
If you have not yet filed your tax return for tax year 2022 at the time you take possession of your new clean vehicle, you may claim the credit on your original 2022 tax return. If you have already filed your tax return for tax year 2022 at the time you take possession of the new clean vehicle, you may file an amended tax return for tax year 2022 and claim the credit. Generally, taxpayers must file an amended return within three years after the date the original return was filed or within two years after the date they paid the tax, whichever is later.
The income and MSRP limitations apply to any vehicle that is placed in service (delivered to the taxpayer) in 2023.

https://fueleconomy.gov/feg/taxfaqs.shtml

and look for the the answer to this question:
If I purchased or entered into a written binding contract to purchase my new clean vehicle after December 31, 2021, and before August 16, 2022, and placed it in service after December 31, 2022, what requirements apply and on what tax year’s return can I claim the new clean vehicle credit?

Hmm… that seems contrary to the statutory text and doesn’t match anything IRS has ever said. I’ll have to take a look back, but I’m pretty sure they both say “under the prior rules”. Those prior rules didn’t have any income or price caps for eligibility.

edit: just found the same set of FAQs on the IRS site, and that last paragraph isn’t there. I think someone messed up when copying the FAQ to FuelEconomy.gov because the previous answer seems definitive, even though it is superseded by the more recently-issued answer to Q8.

https://www.irs.gov/newsroom/topic-...rements-apply-to-the-new-clean-vehicle-credit

 

[Nix]

I agree with most of this and it’s well written. However, does intent really matter when it comes to tax code? Financial reporting and tax code is more transactional in nature. If you can document it, you executed it, you file it.

Being able to demonstrate intent does indeed matter for tax code. For example, if you register an LLC and start earning money and deducting business expenses, the IRS will examine your intent. Was it a true business venture intended to generate profits (even if it doesn't), or is it actually a hobby that was registered as a business with the intent to deduct the cost of a hobby to generate tax losses?

Whether the IRS decides to allow you to deduct those expenses or not will depend on whether you can prove your intent to run a legitimate business for profit. If the IRS determines it is a hobby and there was no intent to create a profitable business, none of the expenses are deductible anymore. Just having all the receipts and documenting the deductions isn't enough.

Although you are correct that leasing a car just to get the tax advantage, with the intent of immediately paying it off is not so clear cut a case where intent would be as determinative.

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