Rivian to offer Binding Purchase Agreements (to help obtain EV tax credit)

[Friscorays]

What if you do not want the old tax credit and you want the new one. How would that work?

Simply don't enter into a binding purchase agreement with Rivian until after the bill is enacted.

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[COdogman]

I imagine as part of that binding agreement, Rivian will make you lock your configuration? Otherwise what are you "bound" to purchase?

 

[astonius]

I really, really doubt these will hold any water whatsoever with the IRS. It's a good marketing move but thinking the IRS will accept a "binding purchase agreement" that doesn't include a VIN is pretty far fetched.

I imagine for the IRS it will be simple: the date you have a VIN is the date the rules apply to your purchase of that VIN.

Anything else is really, really wishful thinking.

Certainly possible, but I have to imagine Rivian (and Fisker) had some lawyers look over the bill and feel at least somewhat confident in the potential for this to be an adequate workaround, otherwise I don't think they'd waste their time and effort scrambling to get this done.

 

[linkwpc]

That is not how the tax credit works. You do not need to owe money in order to claim it. You need to have at least a 7500 tax liability in order to claim it (pay at least $7500/yr in fed taxes) As long as you've paid it you are good to go. I am assuming most people buying a Rivian hit this mark (except for very specific situations).

Ah I see, This was the part I never understood. Thanks for clearing that up.

 

[Jac]

I really, really doubt these will hold any water whatsoever with the IRS. It's a good marketing move but thinking the IRS will accept a "binding purchase agreement" that doesn't include a VIN is pretty far fetched.

I imagine for the IRS it will be simple: the date you have a VIN is the date the rules apply to your purchase of that VIN.

Anything else is really, really wishful thinking.

I have confidence Rivian’s Law Department and expert outside tax counsel are crafting the Rivian binding purchase agreement to provide the best document they can based on what is known at this time.

 

[Friscorays]

I imagine as part of that binding agreement, Rivian will make you lock your configuration? Otherwise what are you "bound" to purchase?

$7500 will be an excellent motivator for us to get off of the fence and lock in an exterior paint color; the only thing that we are not 100% decided upon.

 

[Dirty_B]

I wonder if they'll offer to just convert our $1000 to the binding agreement? That's a steep price, but I'm in either way. (Fisker was $250 IIRC)

To thumb our noses at the crooks in DC, I hope it's 1 penny... That would be funny!

 

[zefram47]

The problem with this wording is, "at such time, and in such form and manner, as the Secretary of the Treasury, or the Secretary's delegate, may prescribe". If they really wanted to be dicks, they could watch all this fallout and then after the bill is signed say that none of the ways attempted will work.

 

[aex90832]

Normally I word agree with most here as I bought a Pacifica Hubrid in December 2020 but dealer didn't deliver until a few days later on Jan 2nd. That messed up my tax credit (Colorado's tax credit was reduced in 2021 vs 2020)

However this excerpt (from @Friscorays) in the transition period section seems to allow what Rivian is attempting.

 

[Friscorays]

.....and then after the bill is signed say that none of the ways attempted will work.

Hope for the best plan for the worst.

 

[mabowden]

Ah I see, This was the part I never understood. Thanks for clearing that up.

I thought about it the same exact way for years, until someone cleared it up for me on this forum. I had plans to reduce withholding, etc in order to claim the credit. It was quite a while ago but someone cleared it up for me too.

 

[Friscorays]

To thumb our noses at the crooks in DC, I hope it's 1 penny... That would be funny!

Remind me again where the $7500 many of us are eager to qualify for is coming from.

 

[pc500]

Remind me again where the $7500 many of us are eager to qualify for is coming from.

Taxpayers.

 

[Friscorays]

Taxpayers.

Yep, like me. Remind me again where one should move in order to enjoy the benefits of an organized society without having to pay anything for it.

 

[jollyroger]

The only issue I have is that What I have configured is just under 83k. But I'm worried if this binding contract doesn't work then I'm on the hook and cant do something simple like remove the camp kitchen. Are any of you going to set up the binding contract under 80k just in case?

I also posed the question in another thread but is camp kitchen part of MSRP? or is it an accessory

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