Official email from Rivian offering Binding Purchase Agreement

[Jac]

On one side of the fence. That's the point, push manufacturers to make a cheaper EV.
On the other side of the fence. If it's not profitable for automakers to make an EV...they won't.

Maybe I’m being cynical, but I think the new EV tax credit got whittled down in negotiations to the MSRP, income and battery mineral source and component source restrictions in the law about to be passed by senators who were bent on limiting EV incentives.

Only last weekend, during the Senate consideration of the Inflation Reduction Act, Sen. Deb Fischer (R-Nebraska) unsuccessfully proposed an amendment to the new EV tax credit in the legislation that would have prohibited it from being used for any vehicle costing more than $42,000. Shocked to subsequently read that Nebraska ranks third in corn production used to make the ethanol fuel additive.

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[Speedrye]

What is the deadline? Before the bill is signed to law?

Yup. As early as tomorrow, as late as Monday I'd say.

 

[Max]

Yup. As early as tomorrow, as late as Monday I'd say.

Does this mean that if you sign, you are locked into the old tax incentive, or you have the option of using the new rules in 23 with at the point of sale reduction? I meet the income and price limit and mineral issue is potentially the main difference.

p.s. I have not received the email so it may not matter if I don’t get it soon.

 

[Speedrye]

Does this mean that if you sign, you are locked into the old tax incentive, or you have the option of using the new rules in 23 with at the point of sale reduction? I meet the income and price limit and mineral issue is potentially the main difference.

p.s. I have not received the email so it may not matter if I don’t get it soon.

If the mineral issue rules Rivian out of the new tax credit, signing the PBA should preserve your ability to get the current tax credit. If Rivian does meet the mineral requirements, then you should be able to choose which credit you receive. I doubt Rivian will meet the mineral requirements, so I signed, but there's a lot up in the air right now.

 

[Narya]

Maybe I’m being cynical, but I think the new EV tax credit got whittled down in negotiations to the MSRP, income and battery mineral source and component source restrictions in the law about to be passed by senators who were bent on limiting EV incentives.

The Senate already finished the vote-a-rama, and it is now in the hands of the House. If the House adds new amendments, they will have to pass it back to the Senate. There is going to be tons of pressure on the House Dems to pass it as is, I would imagine. I am no political expert, but I am pretty sure Pelosi will find a way to make sure it passes as is.

 

[Jac]

The Senate already finished the vote-a-rama, and it is now in the hands of the House. If the House adds new amendments, they will have to pass it back to the Senate. There is going to be tons of pressure on the House Dems to pass it as is, I would imagine. I am no political expert, but I am pretty sure Pelosi will find a way to make sure it passes as is.

No question. I would be very surprised if the Senate approved version doesn’t quickly pass the House of Representatives tomorrow strictly along party lines.

 

[Narya]

No question. I would be very surprised if the Senate approved version doesn’t quickly pass the House of Representatives tomorrow strictly along party lines.

I see that I mis-read your original post - you were saying that you expect the bill did get whittled down, not that it will. Apologies!

 

[Max]

“Vehicle prices available at the time of your Order are only an estimate based on available features and options at the time of order.”

Signing this sounds like signing a Blank check hoping Rivian put a number on it you will be OK with.

 

[mkg3]

Does this mean that if you sign, you are locked into the old tax incentive, or you have the option of using the new rules in 23 with at the point of sale reduction? I meet the income and price limit and mineral issue is potentially the main difference.

p.s. I have not received the email so it may not matter if I don’t get it soon.

The interpretation is that if you sign, the loophole is "placing an order" under the existing law. The tax credit eligible is in the tax year you take delivery (e.g., 2023 tax year filing is in 2024).

The new law that coming, aside from income and cost limits, if you are looking to take "rebate" at the purchase time, the wording states that it must be purchased through a "dealer". Clearly this eliminates any direct sales model all the EV companies are using including Rivian.

If you qualify in terms of income and price point, then the credit is taken as a tax credit, like the current law, if bought through direct sales EV company... I believe.

 

[Max]

The interpretation is that if you sign, the loophole is "placing an order" under the existing law. The tax credit eligible is in the tax year you take delivery (e.g., 2023 tax year filing is in 2024).

The new law that coming, aside from income and cost limits, if you are looking to take "rebate" at the purchase time, the wording states that it must be purchased through a "dealer". Clearly this eliminates any direct sales model all the EV companies are using including Rivian.

If you qualify in terms of income and price point, then the credit is taken as a tax credit, like the current law, if bought through direct sales EV company... I believe.

Thanks for clarification. Some folks on the thread are under the impression that this binding cagreement does not help 24 deliveries. Do you think people like me (Explore R1S) that may not have a delivery until 24 are obligating themselves to a purchase with no tax incentive?

 

[Mister Person]

Signing this sounds like signing a Blank check hoping Rivian put a number on it you will be OK with.

For anyone with a pre-3/1 reservation, they've already been through that. I doubt Rivian would mess with us again without being SUPER CLEAR about it. For anyone with a post-3/1 reservation, this was already the case.

 

[schalliol]

For anyone with a pre-3/1 reservation, they've already been through that. I doubt Rivian would mess with us again without being SUPER CLEAR about it. For anyone with a post-3/1 reservation, this was already the case.

Agreed. The investors already understand that they're going to lose more money on the early adopters, so there's not a lot of upside and make people mad again by raising prices.

 

[electruck]

Thanks for clarification. Some folks on the thread are under the impression that this binding cagreement does not help 24 deliveries. Do you think people like me (Explore R1S) that may not have a delivery until 24 are obligating themselves to a purchase with no tax incentive?

Until the bill is passed and guidance issued, there are no guarantees about how this will play out regarding the incentives. The real question is, are you willing to risk $100 to potentially save $7500?

 

[Gsxr150]

Does anyone have their name, possible reservation #, etc on the PDF? It seems like a generic PDF to me.

Nope...generic.

 

[moosetags]

We went ahead and signed the so-called binding sales agreement with Rivian. Best case scenario, we are eligible to receive the $7,500 federal income tax rebate. Worst case scenario, we don't get the rebate and buy our R1T anyway.

What I do find disappointing is that our federal legislative bodies do not have enough of a grasp of economic reality to realize that their new EV incentive program will actually hurt EV proliferation. As usual, the legislators speak from both sides of their mouths.

Brian

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