True or False: BPA only valid for 2022 and 2023 deliveries, invalid for 2024 and beyond?

[sk00pie]

Lot of rumors and speculation regarding the BPA. I've heard some mention the BPA will only be valid for 22/23 deliveries and invalid beyond that. Any truth to that and if so is there a source?

Sponsored

 

[Rivian_Hugh_III]

I haven’t heard this. Maybe you could post an article suggesting the same? Do they cite sources? Do you think you’re 2024 bound?

 

[sk00pie]

I haven’t heard this. Maybe you could post an article suggesting the same? Do they cite sources? Do you think you’re 2024 bound?

I actually haven’t seen anyone provide a source. Just seems like speculation and I have no idea why or if it’s valid in anyway! I’m a 7/22 reservation dual motor standard everting no options. Assuming end of 23 early 24.

 

[Rivian_Hugh_III]

I actually haven’t seen anyone provide a source. Just seems like speculation and I have no idea why or if it’s valid in anyway! I’m a 7/22 reservation dual motor standard everting no options. Assuming end of 23 early 24.

The bill that’s making its journey to Biden does have some 2024 thresholds, but none I can recall that would affect the binding purchase agreement.

The bill says that if you have a BPA before the president signs the bill then your eventual purchase will count as having occurred at the time your BPA was signed, thus putting you under the pre-bill rules. O thing in that part of the bill suggests a sunset on the BPA’s effectiveness.

Do keep in mind that passed laws go to enforcing a techies that interpret the law and draw up rules to be followed. It’s possible the law could be interpreted in such a way that these BPA’s are deemed ineffective. It’s also possible the House may tweak the bill before passing. Neither of these are likely in my opinion. The administration wants this bill, and Democrats will be writing the rules (Transportaton Secretary signs off). Also the House just wants a win, not to piss off Manchin and Synema.

 

[sk00pie]

The bill that’s making its journey to Biden does have some 2024 thresholds, but none I can recall that would affect the binding purchase agreement.

The bill says that if you have a BPA before the president signs the bill then your eventual purchase will count as having occurred at the time your BPA was signed, thus putting you under the pre-bill rules. O thing in that part of the bill suggests a sunset on the BPA’s effectiveness.

Do keep in mind that passed laws go to enforcing a techies that interpret the law and draw up rules to be followed. It’s possible the law could be interpreted in such a way that these BPA’s are deemed ineffective. It’s also possible the House may tweak the bill before passing. Neither of these are likely in my opinion. The administration wants this bill, and Democrats will be writing the rules (Transportaton Secretary signs off). Also the House just wants a win, not to piss off Manchin and Synema.

makes sense! Hopefully all clarified once law passes and the BPA is tested early next year.

 

[McMoo]

This is the transition rule. There is no delivery deadline in it. Treasury still has to issue regulations and I suppose could impose one if they don’t think the intent is to extend it past a short period of time (which could be challenged by appealing a denial of credit and going to tax court) but hopefully not.

(l) TRANSITION RULE.—Solely for purposes of the application of section 30D of the Internal Revenue Code of 1986, in the case of a taxpayer that—

(1) after December 31, 2021, and before the date of enactment of this Act, purchased, or entered into a written binding contract to purchase, a new qualified plug-in electric drive motor vehicle (as de-
fined in section 30D(d)(1) of the Internal Revenue Code of 1986, as in effect on the day before the date of enactment of this Act), and
(2) placed such vehicle in service on or after the date of enactment of this Act,
such taxpayer may elect (at such time, and in such form and manner, as the Secretary of the Treasury, or the Sec- retary’s delegate, may prescribe) to treat such vehicle as having been placed in service on the day before the date of enactment of this Act.

 

[COdogman]

From what I remember, the only things specific to 2024 and beyond are the battery sourcing requirements, which ramp up each year starting in ‘24. Even with that I would assume the Treasury department would find a way through waivers to allow the auto industry more time to meet that standard.

 

[sk00pie]

This is the transition rule. There is no delivery deadline in it. Treasury still has to issue regulations and I suppose could impose one if they don’t think the intent is to extend it past a short period of time (which could be challenged by appealing a denial of credit and going to tax court) but hopefully not.

(l) TRANSITION RULE.—Solely for purposes of the application of section 30D of the Internal Revenue Code of 1986, in the case of a taxpayer that—

(1) after December 31, 2021, and before the date of enactment of this Act, purchased, or entered into a written binding contract to purchase, a new qualified plug-in electric drive motor vehicle (as de-
fined in section 30D(d)(1) of the Internal Revenue Code of 1986, as in effect on the day before the date of enactment of this Act), and
(2) placed such vehicle in service on or after the date of enactment of this Act,
such taxpayer may elect (at such time, and in such form and manner, as the Secretary of the Treasury, or the Sec- retary’s delegate, may prescribe) to treat such vehicle as having been placed in service on the day before the date of enactment of this Act.

Thanks! What exactly excludes Rivian from the updated law if you skip the BPA? The sourcing of the battery? If your spec is around $70k would think it would qualify still?

 

[sub]

Thanks! What exactly excludes Rivian from the updated law if you skip the BPA? The sourcing of the battery? If your spec is around $70k would think it would qualify still?

For most Rivian customers the income cap of $150K is a clear disqualifier. Most people making less than that usually don't spend this much on a car.

 

[sk00pie]

For most people the income cap of $150K is a clear disqualifier. Most people making less than that usually don't spend this much on a car.

I see. So if you're under 150k, then Rivian still qualifies for 23?

 

[McMoo]

Thanks! What exactly excludes Rivian from the updated law if you skip the BPA? The sourcing of the battery?

Yes that’s the expectation.

 

[McMoo]

I see. So if you're under 150k, then Rivian still qualifies for 23?

probably not due to sourcing rules.

 

[Jac]

probably not due to sourcing rules.

100%. Why would you want to gamble that Rivian’s battery mineral sources and battery components sources will qualify you for the tax credit under the new rules when you have an opportunity today to potentially avoid that by signing the BPA.

 

[CaptRat]

This is the transition rule. There is no delivery deadline in it. Treasury still has to issue regulations and I suppose could impose one if they don’t think the intent is to extend it past a short period of time (which could be challenged by appealing a denial of credit and going to tax court) but hopefully not.

That's how read it too. I'm a Jan 22 preorder and signed the BPA. I'm anticipating not receiving my R1T until 2024. For the $100 it's worth the gamble that the IRS will jinx the deal.

 

[swazi]

I would think one of the hurdles would be to actually fill out your tax return. The existing credit is on a specific form (or whatever it's called, to lazy to look it up). Now we will have to wait and see what the IRS does with the new bill. And if/how the existing form lives into the future. Or is my thinking wrong?

Sponsored