Tax Incentive for R2?

[KSL0217]

I know it was said R2 will be able to get the $7500 tax incentives, but when R2 start coming out, do you guys think that will be still the case?

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[Dark-Fx]

If the credits don't change between now and then, it will be eligible for the full $7500.

 

[Gen(R3)Xer]

I know it was said R2 will be able to get the $7500 tax incentives, but when R2 start coming out, do you guys think that will be still the case?

This is from Google:

“The federal EV tax credit, worth up to $7,500, is a nonrefundable tax credit that has been an effective way to lower the cost of EV ownership for taxpayers. The Inflation Reduction Act of 2022 changed this tax credit by extending its life through 2032 and expanding it to cover more vehicles.”

In reality it actually covers fewer vehicles because the battery material and assembly has to be done in North America or a country with a free trade agreement with the US. I’m pretty sure Rivian can pull this off. The question is will they survive long enough to make it happen? I hope so.

 

[White Shadow]

Keep in mind that the program can change and the upcoming election will most likely have a big impact on that one way or another.

 

[defcon888]

I know some brands are offering "on the spot" credit meaning that if the R2 costs $47.500 and when you go to pick it up, they apply the $7,500 instantly and you finance the R2 for $40,000.

Whether Rivian does that.....don't know.

 

[s0ysauce]

Yeah BMW is one where they will take the tax credit right off the sale price for a lease on their I4 electric sedans.

I know some brands are offering "on the spot" credit meaning that if the R2 costs $47.500 and when you go to pick it up, they apply the $7,500 instantly and you finance the R2 for $40,000.

Whether Rivian does that.....don't know.

 

[White Shadow]

I know some brands are offering "on the spot" credit meaning that if the R2 costs $47.500 and when you go to pick it up, they apply the $7,500 instantly and you finance the R2 for $40,000.

Whether Rivian does that.....don't know.

That's the change to the program, so it will be the same for all manufacturers. It went from a tax credit to a cash value credit.

 

[Gen(R3)Xer]

Keep in mind that the program can change and the upcoming election will most likely have a big impact on that one way or another.

I’m not sure a new President can just undo the IRA. Some Republicans voted for this as well and now they’re reaping the rewards with infrastructure dollars. Even the ones that opposed it are still taking credit as it’s boosting funding in their states. They could try to defund it, like they tried to do with Obamacare, but it’s not going away until 2032.

Vehicle electrification is the future and the US doesn’t want to cede a multi-trillion dollar industry to China without a fight. In fact government subsidies are what allowed companies like BYD to become so successful.

 

[Augsburg]

I'm convinced that the $7,500 EV tax credit will stand if Biden is re-elected. Otherwise, I expect it to be gone very quickly.

 

[CharonPDX]

I know it was said R2 will be able to get the $7500 tax incentives, but when R2 start coming out, do you guys think that will be still the case?

No clue.

The % of "critical minerals" and the battery that must be made in "not bad countries" goes up every year. While it may meet today's requirements, maybe it won't in 2026.

Or the law could get changed.

Or society could collapse by then.

 

[UnsungZero_OldTimeAdMan]

I know it was said R2 will be able to get the $7500 tax incentives, but when R2 start coming out, do you guys think that will be still the case?

How the hell would anyone know? When you find that person, who has knowledge of future events as if it was yesterday, I’d like to pump him for winning Powerball numbers.

Legislation can change with change of presidency and congress.

 

[White Shadow]

I’m not sure a new President can just undo the IRA. Some Republicans voted for this as well and now they’re reaping the rewards with infrastructure dollars. Even the ones that opposed it are still taking credit as it’s boosting funding in their states. They could try to defund it, like they tried to do with Obamacare, but it’s not going away until 2032.

Vehicle electrification is the future and the US doesn’t want to cede a multi-trillion dollar industry to China without a fight. In fact government subsidies are what allowed companies like BYD to become so successful.

I'm not saying a president can magically make it disappear. But a new administration can make changes that basically change it completely. We all know Trump is anti-EV. We know he's going to increase drilling for oil. We know he doesn't believe in climate change. If he's elected, it's definitely going to have a big impact on the EV industry as a whole. There's a lot a new administration can do to change the existing policy and if it also has the majority in the House and Senate, then everything could easily and quickly go away.

 

[Gen(R3)Xer]

I'm not saying a president can magically make it disappear. But a new administration can make changes that basically change it completely. We all know Trump is anti-EV. We know he's going to increase drilling for oil. We know he doesn't believe in climate change. If he's elected, it's definitely going to have a big impact on the EV industry as a whole. There's a lot a new administration can do to change the existing policy and if it also has the majority in the House and Senate, then everything could easily and quickly go away.

Ugh, yes that’s true. I hate how polarized our government is. It’s beyond annoying. Doing things to improve the lives of your citizens (cleaner air, less dependence on foreign oil, etc.) should be both parties concern. Not having the point-of-sale rebate makes EVs even less affordable than they already are for the majority of the population.

If Trump wins there will be a huge run for EVs before January 2025. Sadly the demand will probably drive up prices. I might look into a used EV before it’s too late.

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