Frightening EV Credits

[Scoiatael]

I'm not happy with this. I'm already over the joint income cap, even if I wasn't I'd have to drop everything and just go with the Adventure build with no additions.

Edit: I was unhappy with the joint income cap when it was 150k, not the 800k they are proposing now. Still wish they would cap the truck at 80k though.

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[bd5400]

Well dang.. Thanks for the link. There is no mention of 2500 for US built cars and 2500 for Union built cars. I wonder where CNET got that info? Anyways, it can still change up a bit as long as it follows the agreed framework. We shall see..

I think prior proposals separated US assembly from union built. This one combines them so that "Domestic Assembly" is defined as "the final assembly of such vehicle occurs at a plant, factory, or other place which is located in the United States and operating under a collective bargaining agreement negotiated by an employee organization...."

So the tax credit remains at $7,500 for Rivian, not $10k as previously hoped. Separating them again would require changing a defined term in the framework, which suggests it probably won't happen as the implementing regulations can't redefine terms in the framework.

This could also be how they are trying to get around protectionist arguments. They aren't benefitting all U.S. manufactured vehicles to the exclusion of others. They are only benefitting certain U.S. manufactured vehicles so, for example, a Canadian built car is on a level playing field with Rivian or Tesla. Just a thought....

 

[AxelR]

This is such bs. The income cap is a joke.
Who do they think can afford these expensive EVs??
So in the end, Rivian will be lacking tax credit for those of us who want more than a base truck, has a poor charging infrastructure, early production issues… this is great

 

[DucRider]

No matter what passes, it is likely that the full impact will be unknown until the actual rules are written interpreting the language in the bill.
The IRS will probably not complete and release that info until late 2022 or 2023.
They have to decide things like if " MSRP not to exceed" means the base MSRP for a model, the MSRP of each vehicle sold, if something like the R1T Explore and Adventure are the same model with the same base MSRP, or are different Models, whether additional battery pack capacity is an option to the base MSRP or it becomes a different Model and therefor has a different base MSRP.
Right now, they can publish a list of EVs and designate which ones qualify for the Credit. Under all of the proposals I have seen, that will no longer be possible. It will be up to the consumer to interpret the regulations and IRS rules and decide whether a vehicle they purchase qualifies, and if so, for how much. If a manufacturer is selling Models assembled both in and out of the US (ID.4 willfall in this category, and the Model 3 has at times as well), the consumer will have to know where their particular car is assembled.
Forget any hope of a point of sales rebate. There is no way a dealership (or manufacturer) is going to take on the responsibility of determining how much you may or may not be qualified for. If they get it wrong, they would either have to take a loss or try and collect it from the purchaser - neither is very attractive. Most dealers won't talk about the current Tax Credit (with a set amount for every model and available to everyone) - even if asked directly. With it getting 100x more complicated, they will be even more reluctant to even mention the availability, let alone put their money on the line to provide a POS option. Even if the Government makes it available, few (if any) will elect to participate.

 

[Scoiatael]

This is such bs. The income cap is a joke.
Who do they think can afford these expensive EVs??
So in the end, Rivian will be lacking tax credit for those of us who want more than a base truck, has a poor charging infrastructure, early production issues… this is great

Yep. Income cap is ridiculous. Should go up another 100k at least. SUV and Truck price cap should be raised by 20k.

 

[LaunchGreen]

Write your congresspeople folks. Unacceptable.

https://jalopnik.com/moderate-democrats-demand-worse-electric-vehicle-tax-cr-1847758834

Direct government subsidies for unions. Gross.

 

[emoore]

Maybe I shouldn't even be considering buying a Rivian, I'm nowhere near the income cap.

 

[Friscorays]

Bummer about March 1, 2022.

 

[bd5400]

Yep. Income cap is ridiculous. Should go up another 100k at least. SUV and Truck price cap should be raised by 20k.

While I don't think an income cap is absolutely necessary, I also don't think a $400k income cap is ridiculous and requires at least another $100k on top of it.

 

[Rhidan]

Tying the credit to a limit on “MSRP” (which is an undefined term) is just bad law. If and until the IRS issues regulations on what “MSRP” means, Rivian can just set MSRP at $1 and sell you an R1S for $93,000.

Not sure why people are frantically unselecting options trying to get your purchase price under $69,000.

Even if this law were to pass, we really have no idea what impact that MSRP limit will have on Rivian until Rivian or the IRS set an MSRP for their vehicles.

 

[Canthoney]

Without getting too political, I think this is ridiculous. Giving more to union built vehicles is picking winners and losers in this market which I think is ridiculous if the goal is to electrify America‘s vehicles.

 

[Friscorays]

Bummer about March 1, 2022.

 

[Sgt Beavis]

I'm not happy with this. I'm already over the joint income cap, even if I wasn't I'd have to drop everything and just go with the Adventure build with no additions.

I don't really care for that provision either and I get it that you're in a pretty expensive part of the country. But I don't think you'll get much sympathy if you make over $400K AGI ($800K AGI joint filer).

Hell, I don't think I'd get much sympathy. I'd just have to suck it up.

 

[Friscorays]

Bummer about March 1, 2022.

 

[Zeroemit]

https://www.bloomberg.com/news/arti...h-detroit-automakers-unions-on-ev-tax-credits
According to this, MSRP is set at 74k for pickup and SUV. $7500 base, $500 for battery made in USA. $4500 for union made.

For income below 400k and joint filers over 800k.

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