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azuano3654

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Hopefully someone smarter than me can break this down for everyone - what is the tax credit after 4/18 for R1S/R1T purchases below $80k? Are we waiting on Rivian to disclose the battery component breakdown?
 

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Hopefully someone smarter than me can break this down for everyone - what is the tax credit after 4/18 for R1S/R1T purchases below $80k? Are we waiting on Rivian to disclose the battery component breakdown?
Yes. The Treasury press release says fueleconomy.gov will track which vehicles qualify under the sourcing requirements starting on 4/18. I just checked and it still only factors in the previous requirements. Right now it still says both the T and S qualify for $7500.
 

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I wonder how they define assembled. For an extreme, unrealistic example, can an OEM make most of the vehicle oversees except for one part, then transfer it to a plant they have here to add that last part to be considered assembled?
 

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Are there separate income and MSRP requirements pre 4/18 and post 4/18? Or is this just clarification around battery sourcing and manufacturing requirements?
 

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Are there separate income and MSRP requirements pre 4/18 and post 4/18? Or is this just clarification around battery sourcing and manufacturing requirements?
No, the income req's are the same. This is clarification on sourcing and assembly.
 

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Thank you OP for sharing this! In your research, did it state anything about those with a signed Binding Contract and delivery later in the year? (IE delivery after 4/18)
 

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With the added complication of additional price increases further reducing the select builds that fall under the $80k MSRP cap for the credit.
 

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To clarify for all and confirm my understanding: This does not change the eligibility for the credit for people with a binding purchase agreement signed pre 8/15/2022, correct? We are still able to take full 7,500 credit by amending 2022 returns and placing the car in service as of the BPA?
 
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You need to go read the email Rivian sent out on this earlier in the month.

My recollection is that you need to amend 2022 return and put in the date of 8/16/2022 as inservice date for the vehicle, even though your actual delivery date is in 2023/24.

There is no income limit nor price limit on the vehicle since it falls under the old EV credit rules.
 
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You need to go read the email Rivian sent out on this earlier in the month.

My recollection is that you need to amend 2022 return and put in the date of 8/16/2022 as inservice date for the vehicle, even though your actual delivery date is in 2023/24.

There is no income limit nor price limit on the vehicle since it falls under the old EV credit rules.
Correct, except it's 8/15/2022 that should be used. Refer to the instructions here
 

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I wonder how they define assembled. For an extreme, unrealistic example, can an OEM make most of the vehicle oversees except for one part, then transfer it to a plant they have here to add that last part to be considered assembled?
Yea, that's what Tesla used to do in their Tilburg Netherlands plant. They would almost completely assemble cars in Fremont, and then complete "final assembly" in Europe. That involved installing the battery and the drivetrain. No idea if the US will have a similar loophole.
 

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Both R1's qualify
 

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Both R1's qualify
This appears to be the case however, I'm not sure we can say for certain at this point that the R1 will qualify for the full $7,500. The R1 is built in the US, so there's no question about meeting that part of the tax credit requirement. The battery is the issue for the second leg of the credit requirement.

I think that the battery supplier is Samsung SDI, and since Korea is one of the countries "with which with which the US has a free trade agreement", that part of the requirement is met. I believe that there is a secondary requirement for the battery that states its components must be “manufactured or assembled in North America.” It's not clear to me that Rivian clears this hurdle as well. If this requirement is not met, the Rivian would qualify for only 50% of the $7,500 tax credit.

Of course, since there is a price threshold of $80,000, none of the post-March 2022 Rivian's will be eligible, so there are relatively few R1's that will actually qualify for any of the Federal tax credit.
 

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To clarify for all and confirm my understanding: This does not change the eligibility for the credit for people with a binding purchase agreement signed pre 8/15/2022, correct? We are still able to take full 7,500 credit by amending 2022 returns and placing the car in service as of the BPA?
This is my understanding as well but you should certainly confirm with your tax professional.
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