Federal tax credit

[richguess]

I did an online chat today with Rivian with no information gained. My question pertains to the federal tax credit. I have a R1S on order, quad motor, and the price is $77k. We qualify for the credit income wise. That leaves battery materials and metals sourcing. I asked if Rivian batteries met the tax requirements. He checked, told me Samsung is their source, and didn’t know otherwise. Seemed oblivious to the issue. Anybody know the answer? Thx.

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[electruck]

Sorry, no, nobody has that answer at this point. Not even Rivian. More than likely SDI still can't provide that answer.

 

[Guy]

Are you due delivery this year or next?
Also how is it $77k when the base adventure is $78k plus destination so you are at $79.5 before options like wheels, colors, interiors etc.

 

[Jac]

Are you due delivery this year or next?
Also how is it $77k when the base adventure is $78k plus destination so you are at $79.5 before options like wheels, colors, interiors etc.

Presumably, he does not expect to get his Rivian in 2022. Under the new law, the battery sourcing requirement, as well as the MSRP cap and income cap, go into effect for deliveries starting in 2023. Of course, if the IRS allows Rivian’s binding purchase agreements, 2023 deliveries can be treated, for tax credit purposes, as if the vehicle was delivered before the new law was enacted.

 

[Dark-Fx]

The answer is going to be no, it doesn't qualify under materials sourcing. As far as I am aware, not a single EV currently produced will qualify.

 

[VSG]

For the most part, the regulations implementing this law haven't been written or finalized yet. A lot of this remains to be determined. We likely won't find out these things for many months.

I wouldn't take any tax advice from customer support - they're just the wrong people to ask and nothing they tell you is sufficient for when/if you get audited.

Most EV makers are going to lose the credit starting next year unless the regulations make extensions, exemptions, exceptions, or even just broad definitions. There's no way for an automaker to change assembly locations or change major suppliers in the few months between when the law was passed and when these provisions go into effect on 1 Jan. That's the opposite of encouraging a switch to alternate fuel vehicles, and goes against the intent of the law IMO.

 

[Jac]

The answer is going to be no, it doesn't qualify under materials sourcing. As far as I am aware, not a single EV currently produced will qualify.

Sadly, I agree. That’s why I’m more interested in whether the binding purchase agreement will work as hoped. In any case, I don’t see much point in compromising your build to squeak under $80k based on what is known today.

 

[BillyBob]

Also how is it $77k when the base adventure is $78k plus destination so you are at $79.5 before options like wheels, colors, interiors etc.

Huh? My base cost for my R1S Adventure is $75.5K (Pre Price increase) $77K is accurate when you add in the $1.5K destination fee.

 

[richguess]

I signed up before the price increase, didn't have many options (Paint, roof rails, spare tire.Rivian honors the original price. I didn't do the binding purchase agreement as my price was below $80k, but then the battery sourcing info came out. Probably should have. I haven't gotten a delivery date from Rivian (supposedly happening this month sometime.) I have a Hyundai Ionic 5 I really like, and my wife has a RAV4 Prime, so the Rivian is really a luxury and I would like to get it (sell the Hyundai) but the $7500 does play into my decision. Given the lower purchase price I probably couldn't lose either way.

 

[sac602]

Is the destination charge part of msrp?

 

[Aardvark]

Is the destination charge part of msrp?

Yes. I don't know if it varies, but for Colorado it is $1500. So the vehicle price needs to stay below $78,500 to keep the MSRP below $80K. I changed my wheels from 20" AT to the 21"s and for the rest of my configuration, that did the trick. I was on the fence anyway between the two tires.

 

[sac602]

Ug. I couldn't find an answer to that online. Bummer. I guess Ill switch to the 21s too as I'm not thinkng the "purchase agreement" will fly with the IRS.

 

[Guy]

Huh? My base cost for my R1S Adventure is $75.5K (Pre Price increase) $77K is accurate when you add in the $1.5K destination fee.

You are right, I was mistaken including the delivery fee and my Forest Green option. Thanks for pointing out.

 

[emoore]

Ug. I couldn't find an answer to that online. Bummer. I guess Ill switch to the 21s too as I'm not thinkng the "purchase agreement" will fly with the IRS.

If the purchase agreement wont fly the most you’ll possibly get is 3750.

 

[godfodder0901]

Yes. I don't know if it varies, but for Colorado it is $1500. So the vehicle price needs to stay below $78,500 to keep the MSRP below $80K. I changed my wheels from 20" AT to the 21"s and for the rest of my configuration, that did the trick. I was on the fence anyway between the two tires.

Destination fees must be identical for all customers of like vehicles.

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