Tax Credit Proposal - House Bill 11/3

[ruawahoo2]

Income limits (does phase out):
500k joint
250k single

MSRP limits:
80k truck
80k suv

Rivian credit: $7500

https://rules.house.gov/sites/democrats.rules.house.gov/files/BILLS-117HR5376RH-RCP117-18.pdf

Page 1480 (or search “greening”)

If I am reading this right, Rivian Credit would be calculated by the sum of the applicable amounts:

Base amount: $4K
More than 40KwH: $3.5K
Domestic Assembly: $4.5K (has the Union CBA requirement)
Domestic Content: $0.5K (requires the battery cells to be "manufactured" in the United States)

So as of now, Rivian R1Ts and R1Ss would qualify for a minimum of $7.5K if the MSRP is less than $80K and your income is less than $250K/single or $500K joint.

But depending on how the government interprets what defines a domestically manufactured battery cells (is it just assembly of the cell and not the individual batteries), Rivian vehicles might qualify for a total of $8K. In the future, when Rivian switches to full domestic battery production, Rivian will definitely qualify.

Happy for anyone to correct me if I have made an error. More eyes makes for better information... most of the time.

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[3l3c7r1c]

Maybe GM is lobbying hard, if not writing it by themselves, for this. Their original ev tax credit was phased out for them and suddenly their cars will get max credit including union credit. Now hummer ev base model ($79k) is eligible for the tax credit.

 

[camaroz1985]

Definitely an improvement. Still would have to limit my options for my preferred spec to stay under the limit. Would be better off with the current credit program.

 

[sevengroove]

Income limits (does phase out):
500k joint
250k single

This might seem like a basic question, but are these limits for "taxable income" after all applicable deductions, or gross income before any deductions?

 

[moondog417]

This might seem like a basic question, but are these limits for "taxable income" after all applicable deductions, or gross income before any deductions?

Modified AGI. Consult your tax accountant (or Google). Keep in mind it’s “the lesser of” the past two years so if your MAGI changed significantly, you may not be out of luck

 

[Smithery]

Makes getting the max pax more difficult. Can't get the and the adventure package. Also can't get max pack with the offroad and AT tires, have to choose one or the other.

Just pricing it out:

Explore trim, max pack, off-road package, standard 21" wheels - $79,500
"Save" $7,500 and then buy a separate set of 20"s with AT tires - which I'll be wanting to do anyways.
But you'd have to stick with a base color to do that, as well.

However, it's all a nonstarter for me anyways; As the prices are, literally no way to get Adventure trim and max pack.

Don't need everything in the Adventure trim, but do need premium audio and gear guard.

Could be solved by selling "max pack capable" trucks at a small higher price, then pay to unlock the capacity later.

If the bill passes with this language before R1Ts go to customers en masse, hopefully Rivian adapts their prices or product somehow.

 

[eggpaul]

That's good news.
Scrolling through the bill, I saw lots of $X00,000,000 that will be sent to different places. Amazing how easy it is to throw many around when it's not yours. you get 250,000,000, you get 250,000,000, you get 250,000,000!!!

 

[Jabbahop]

We need the Max pack so need to remove the camp kitchen, tent and space tire to get under the threshold. Hopefully can add those after purchase.

 

[SeaGeo]

We need the Max pack so need to remove the camp kitchen, tent and space tire to get under the threshold. Hopefully can add those after purchase.

Yeah, that's the obvious solution. Split out all accessories as-is traditionally done so it doesn't impact the MSRP.

 

[timesinks]

LE, off road, Rivian Blue, spare tire, roof rails, destination fee -- squeaks by under $80k. But our camp kitchen more than doubles in price.

If this passes as is, I hope Rivian finds a way to massage the accessories out of the MSRP.

 

[Friscorays]

Bummer about March 1, 2022.

 

[Autolycus]

For me (right now) that probably means: R1S, Adventure, Forest Green, Forest Edge, Compact Spare Tire. NO Offroad. NO 20" AT wheel/tire. $79,450. I could change out Forest Edge or Forest Green (LA Silver instead) for 20" AT. We'll see if this sticks and if pricing is the still the same when I can actually order anything in late 2022 or early 2023.

 

[roth_nj]

Transferability is also a huge development. If Rivian chooses, they can take the tax break and pass it to the customer at point of sale as a credit.
(Not sure if this had been discussed elsewhere.)

This… this… I want this more than anything…

it could be 5k or 20k, but I want it at point of sale. I just have the feeling that I’d get screwed with a deduction vs a set amount at the transaction

 

[Scoiatael]

The bill still needs to pass, which I don't think is going to happen. I'm assuming we'll have the regular $7500 credit.

 

[Tim-in-CA]

Yep, so phased out completely by $540k joint or $290k single.

Oh well, there goes my tax credit! ?

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