A $7,500 tax credit for electric cars changed, again. These are the models impacted [WARNING: NO POLITICS / FISCAL POLICIES]

[Count Orlok]

So the R1x is still Schrödinger's cat?

A $7,500 tax credit for electric cars changed, again. These are the models impacted

Here are the vehicles that are currently eligible for the full credit, but that we still don't know what will happen after April 18:

• Audi Q5 TFSI e Quattro
• BMW 330e
• BMW X5 xDrive45e
• Genesis Electrified GV70
• Nissan Leaf S, S Plus, SL Plus, SV and SV Plus
• Rivian R1S
• Rivian R1T

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[Krusty]

One thing I learned recently is that if you register the car in a business these restrictions don't apply. I just recently leased a iX 50 for my father and since it's owned by BMW, they can claim the rebate, which they applied to the lease. Also check your state to see if your car qualifies for a business ev rebate. Massachusetts has a very generous one.

 

[Yossarian]

A $7,500 tax credit for electric cars changed, again. These are the models impacted

so the R1x is still Schrödinger's cat?

Until 18 April at least; that's when the IRS is supposed to issue final clarification on tax credit status. Hopefully good news for the Rivian, but worst case is 50% credit eligibility.

 

[Killer95Stang]

How does this affect those with binding purchase agreements from 2022? I signed one and get my R1S in a week or so?

 

[Hillbilly]

How does this affect those with binding purchase agreements from 2022? I signed one and get my R1S in a week or so?

Amend 2022 return.

 

[R1Sky Business]

https://www.npr.org/2023/04/15/1169763545/electric-cars-vehicles-tax-credit-climate-bill

 

[R1Sky Business]

Apparently some manufacturers are already announcing the eligibility...not RIVIAN

 

[DuoRivians]

I guess it depends on where Rivian’s Samsung SDI batteries are manufactured from. If Korea, Rivian should qualify for the full $7500. Korea is a free trade partner.

 

[Riviot]

Man, this devolved with 4* posts. Might be a new record.

 

[Yossarian]

I guess it depends on where Rivian’s Samsung SDI batteries are manufactured from. If Korea, Rivian should qualify for the full $7500. Korea is a free trade partner.

Yep, this. Hopefully, the Korean Samsung batteries don't use materials from countries not on the trade list.

 

[Prime]

One thing I learned recently is that if you register the car in a business these restrictions don't apply. I just recently leased a iX 50 for my father and since it's owned by BMW, they can claim the rebate, which they applied to the lease. Also check your state to see if your car qualifies for a business ev rebate. Massachusetts has a very generous one.

I don’t think this is a business related thing but a leasing vs financing thing. Leasing allows you to forgo the new restrictions, for example the lucid can qualify for the full credit with a lease but not if financed. It’s a work around and you can do option to buy at end of lease if desired. Another positive is lease interest is sometimes better than finance interest.

 

[Krusty]

I don’t think this is a business related thing but a leasing vs financing thing. Leasing allows you to forgo the new restrictions, for example the lucid can qualify for the full credit with a lease but not if financed. It’s a work around and you can do option to buy at end of lease if desired. Another positive is lease interest is sometimes better than finance interest.

This is the regulation for businesses. You could also be right but below is the reason that was referenced for me.

https://afdc.energy.gov/laws/13039#:~:text=Beginning January 1, 2023, a,below 14,000 pounds (lbs.)

https://www.cnbc.com/2022/10/21/why...ess-owners-may-be-relatively-easy-to-get.html

 

[CUBldr97]

so what is the source of materials and assembly for the batteries? is that known?

 

[AlphaTango]

As of this morning, neither Rivian model is eligible, which is a mildly frustrating:

https://www.npr.org/2023/04/15/1169763545/electric-cars-vehicles-tax-credit-climate-bill

 

[who764]

It seems that the list will continually be updated. From the NYT:

Ten vehicles that previously qualified, including the Nissan Leaf and the Volkswagen ID.4, will drop off the list, at least temporarily.

The Volkswagen ID.4, an S.U.V. made in Chattanooga, Tenn., did not make the list issued by the Treasury Department on Monday because it is still assessing its supply chain. But Pablo Di Si, the chief executive of Volkswagen Group of America, said he expected the model to qualify.

It doesn't make too much sense to me why the Rivians (and U.S. made VW) doesn't qualify for at least half of the $7,500. The only requirement for one side of the $3,750 is "final assembly."

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