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

[Husker Charlie]

I'm reading through this whole thread and there seems to be alot of concern about the $80k limit but if you're signing a binding purchase agreement, that would be to lock in the 2022 tax treatment, in which case neither your income, nor your purchase price, are relevant...correct?

Correct

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[Mcalc55]

Correct

thank you, just trying to simplify all this. I get that its confusing, but I think the easiest way to think about it is that everyone who signs a BPA will be eligible for $7500 (assuming it doesn't get nix'd by the government)...if you don't, then you have to hope you get delivery before end of year. if not, then you're going to be subject to all the 'new' legislation

 

[Acoustic71]

I have already signed TWO purchase agreements. Yes, you read that correctly. The Rivian Motor Vehicle Purchase Agreement was sent and signed on 8/5/22 as part of my 8 steps. My Guide sent me a Preliminary Buyers Agreement this morning which I signed today, 8/8/22.

I think I'm officially covered!

 

[Husker Charlie]

thank you, just trying to simplify all this. I get that its confusing, but I think the easiest way to think about it is that everyone who signs a BPA will be eligible for $7500 (assuming it doesn't get nix'd by the government)...if you don't, then you have to hope you get delivery before end of year. if not, then you're going to be subject to all the 'new' legislation

That's my understanding.

 

[R1Sky Business]

I have already signed TWO purchase agreements. Yes, you read that correctly. The Rivian Motor Vehicle Purchase Agreement was sent and signed on 8/5/22 as part of my 8 steps. My Guide sent me a Preliminary Buyers Agreement this morning which I signed today, 8/8/22.

I think I'm officially covered!

Winning!!!

 

[R1Sky Business]

I have already signed TWO purchase agreements. Yes, you read that correctly. The Rivian Motor Vehicle Purchase Agreement was sent and signed on 8/5/22 as part of my 8 steps. My Guide sent me a Preliminary Buyers Agreement this morning which I signed today, 8/8/22.

I think I'm officially covered!

Now all you need is an R1

 

[Acoustic71]

Now all you need is an R1

It’s on it’s way from Normal via rail. ?

 

[Husker Charlie]

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

It's a tax credit, not a rebate. Therefore, a person only gets the credit if s/he owes money in taxes, and the individual taxpayer is only getting a tax break (i.e., paying $7500 less in taxes). If I have a $20000 tax liability, I only have to actually pay $12500. If I only owe $5000 in taxes, I use the tax credit and pay $0 - but I don't get a "refund" of the unused $2500. In other words, none of your tax dollars are going to be used to pay me for my tax credit - just my own.

 

[linkwpc]

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.

I thought about doing the same thing to my withholdings as well. I paid 9k last year in taxes so I should pay around the same this year. Therefore I should qualify then...

 

[FindMyElectric]

Nice to see this! But so disappointed in this bill...

Here's a data point--we've been live to listings for almost 2 years now, and in ALL of the Teslas & EVs we've had--there was ONE, yes...one...that was under $25k (the proposed dollar limit for the used $4k used EV tax credit); it was an old 2013 Model S.

And everyone already knows the new EV caps exclude most things that are currently available (such as all Rivians and most Teslas).

This bill could be SO much better...

 

[Bobthebuilder352]

So if it's binding, what happens if the person doesn't/can't follow through with purchase?

In short, nothing.

 

[Speedrye]

So the bill providing for this EV tax incentive is the same one hiring stupid amounts of IRS agents to maximize the government's revenue... What could go wrong?

And to answer the question of who is paying for all of this? Probably China. We're borrowing money to pay for it because we don't have it.

 

[Jac]

So the bill providing for this EV tax incentive is the same one hiring stupid amounts of IRS agents to maximize the government's revenue... What could go wrong?

And to answer the question of who is paying for all of this? Probably China. We're borrowing money to pay for it because we don't have it.

Nope. As this reference from a Forbes article on the Inflation Reduction Act that contains the new EV tax credit notes, the non-partisan Congressional Budget Office says the bill will reduce the deficit by more than $100 billion over the coming ten years - reducing, not increasing upcoming federal borrowing levels.

“Even if it won’t move the needle on inflation, the CBO also estimates the bill would decrease the deficit by more than $100 billion over the next decade. The federal government ran a deficit of $2.8 trillion in 2021, according to the Bipartisan Policy Center; the bill’s estimated deficit reduction would wipe out about 4% of that.”

https://www.forbes.com/advisor/personal-finance/inflation-reduction-act/

 

[RoadRunner]

So the bill providing for this EV tax incentive is the same one hiring stupid amounts of IRS agents to maximize the government's revenue... What could go wrong?

And to answer the question of who is paying for all of this? Probably China. We're borrowing money to pay for it because we don't have it.

So, you don't think we should fund the IRS to maximize collection of taxes that are already owed under current law? IRS funding was purposely cut to the bone to hamstring their ability to audit and collect from those who don't pay the taxes they actually owe. And in the next breath, you lament that we don't have enough money so we have to borrow from China? Are you serious????

This bill is far from perfect, but it will reduce the deficit, reduce the gov'ts need to borrow and/or print money, and increase revenue to more than pay for what's in it.

 

[Speedrye]

My point is that the bill is vague in respect to how the IRS will determine certain aspects of the EV tax credit while also telling the IRS to bring in as much money as possible. Definitely conflicting ideas in my opinion. The EV credit will increase our debt and someone will be paying for it. Just because you lump it in with tax collections doesn't change that fact.

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