Tax Credit Changes in new bill [LOCKED DUE TO POLITICS & ARGUING]

[Olsonsolar]

The 200,000 model cap was a better way to promote new EV production and specifically American Manufacturing. It gave new companies some way to accurately project their sales models and incentives. That's how Tesla benefitted on the Model S. Now the asterisk after the car price will be more confusing for the consumers.

I'd rather see a Percentage based rebate:

10% Rebate on EVs $50k and under
5% Rebate on EVs $50-75K
2.5% Rebate on EVs $75K-100K
No rebates for EVs over 100K.

It ain't perfect, but it's easier for consumers to understand across all models and manufacturers.

Do you mean 100, 50, & 25?

Sponsored

 

[Olsonsolar]

Ahoy polloi!

I find it a bit exclusionary to think the tax credit isn’t putting the Rivian within some of our reach. This is far and away the largest vehicle purchase I’ve made. I want to go electric and I’ve been waiting to replace my gx470 which is now the same price in gas to drive per month as my loan, insurance and charging will be on the Rivian. For me the cost entry barrier is the only hurdle… $7500 is absolutely a part of that equation. And if I was subject to the price increase or not getting that $7500 I would not even be buying it to flip.

so while I appreciate most of you are high rollers… not all of us are.

Man you have that so right. For some this may be the biggest purchase in a lifetime or biggest purchase they will ever make.

 

[Engi_Nerd]

Everyone including people under the income cap and below the MSRP threshold should plan on not receiving the tax break starting Jan 1.

https://www.washingtonpost.com/business/2022/08/03/tax-credits-ev-manchin/

 

[RoadRunner]

Jan 2022 R1S reservation here, no delivery window so far (likely 2H23 or 2024 I guess). For us the $7500 tax rebate is a big part of the value/affordability calculation. It seems that if this bill passes as is, Rivians will not be eligible for any tax break starting in 2023 based on the battery component provision alone.

So now I'm thinking we should switch to R1T in hopes of taking delivery (or at least sign a binding purchase agreement) in 2022 to get the tax credit. I'm assuming we can easily switch back to R1S if this bill does not pass or is altered enough that we could still get the tax credit in 2023?

The R1S seems more practical for our uses than the R1T, but the price is already a bit of a stretch for us even with the tax credit. If we lose the tax credit the R1T starts to make a lot more sense. the R1T is $4k less expensive (Adventure Trim) plus the $7.5K tax credit so we're looking at an $11.5K price difference to get the SUV vs the Truck. And we'd potentially get the Truck a year sooner.

Hopefully they change this bill before it passes as this is kind of a ridiculous scenario. We are willing to wait for the R1S but I don't think we are willing to wait AND pay that much more for it.

 

[Friscorays]

Man you have that so right. For some this may be the biggest purchase in a lifetime or biggest purchase they will ever make.

I am not a financial advisor but would question one's priorities if one were to spend more on a means of transportation than on a place of habitation.

 

[emoore]

Everyone including people under the income cap and below the MSRP threshold should plan on not receiving the tax break starting Jan 1.

https://www.washingtonpost.com/business/2022/08/03/tax-credits-ev-manchin/

The battery sourcing clause sounds like it's going to be a mess to figure out. Maybe that part of it won't be "active" until later next year.

 

[Friscorays]

Jan 2022 R1S reservation here, no delivery window so far (likely 2H23 or 2024 I guess). For us the $7500 tax rebate is a big part of the value/affordability calculation. It seems that if this bill passes as is, Rivians will not be eligible for any tax break starting in 2023 based on the battery component provision alone.

So now I'm thinking we should switch to R1T in hopes of taking delivery (or at least sign a binding purchase agreement) in 2022 to get the tax credit. I'm assuming we can easily switch back to R1S if this bill does not pass or is altered enough that we could still get the tax credit in 2023?.....

I believe the battery component is an open question but the assembled in the USA component is squarely in Rivian's wheelhouse, assuming stay below 80k cap and don't exceed salary cap.

Things are still up in air but bill may be put up for vote as early as next week and once it presumably passes (reportedly still one possible holdout), I doubt President Biden will wait around much before signing it into law. You would have to change to an R1T order, get access to R1 store, find a vehicle more or less to your liking and get a buyer's agreement signed within this time frame; which seems highly unlikely although I guess not entirely impossible.

 

[rohobono]

Man you have that so right. For some this may be the biggest purchase in a lifetime or biggest purchase they will ever make.

Yikes, then people need to seriously reconsider their priorities.

 

[emoore]

Yikes, then people need to seriously reconsider their priorities.

Well they could be renters and not want to buy a house.

 

[Matty J]

This may have been covered already, though I can’t find it.

Does the $80k MSRP cap have to include destination, or can the car be specked up to $80k, then tax and destination on top is Ok?

Currently, my R1S is just over $80k. I can remove the all weather mats to lower below $80k if destination isn’t part of the cap. If it is, I’d need to remove the dark 20’s which I don’t want to do.

 

[jjswan33]

It should say no PARTISAN politics. Discussing how the tax code effects EV purchases makes sense, talking about climate change, or lack their of or arguing about who has the better party platform between the left and right are unnecessary and annoying. If you think about it you have to be pretty inconsiderate of others in order to bring your irrelevant political views into a special interest forum, provided you're not in the off topic section.

I would honestly argue that discussions of climate change are not political either or at least shouldn't be, the science is very clear on the topic. It becomes a political issue because people want to ignore it for political reasons. I would also argue it is relevant in this enthusiast forum because of Rivian's corporate mission statements.

 

[Friscorays]

Pretty sure cap applies only to MSRP as optioned.

 

[Bullitt]

Yikes, then people need to seriously reconsider their priorities.

In this housing market owning a home isn’t the highest priority of people that aren’t already in the housing market. Your priorities and someone else’s are not 1:1

 

[rohobono]

Well they could be renters and not want to buy a house.

In this housing market owning a home isn’t the highest priority of people that aren’t already in the housing market. Your priorities and someone else’s are not 1:1

That was not my point, it was the other responder that specifically mentioned housing. I don't own a house right now but losing the 7500$ credit wouldn't affect my ability to purchase a Rivian. That was my point, if a 7500$ tax credit is the only thing keeping you from the "biggest purchase in your lifetime" then you should seriously reconsider that purchase.

Sponsored