Potential Change to $7,500 EV Tax Credit

Longhorngirl

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SeaGeo

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I'd take an additional 5k off a Rivian...

Edit: Wait, does Rivian use union workers?

Edit 2: No offense to anyone in Texas (@skyote) , but Cornyn says so many just blatantly stupid things. EV adoption is a full frontal assault on Texas? :headbang:
 

Gshenderson

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I wonder if the $80k limit is a base sticker price or as configured for the specific vehicle purchased?
 

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As a fellow Physician, I feel qualified to say that it is clearly the top that is most in need of the tax credit. Seriously, how is your average Cardiothoracic Surgeon expected to live from day to day without it? ;)
 

Babbuino

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I wonder if the $80k limit is a base sticker price or as configured for the specific vehicle purchased?
Not sure, but I have mine at 79285 at the moment. I can still fit 1 more accessory between now and my delivery if something else shows up :D
 

SeaGeo

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I wonder if the $80k limit is a base sticker price or as configured for the specific vehicle purchased?
Washington has a limit of 45k for a sales tax exemption, and it's the cost of the actual vehicle. I had to play some math shenanigans with my dealer to get my ID.4 from 45.5 down to 44.9.

To which point for all of the people shutting in dealers, I would be surprised if a manufacturer adjusts numbers like that to save you tax $$.
 

Babbuino

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Will Rivian add a destination price like all manufacturers to make the cars seem cheaper or is it currently included in the price. Maybe they use that to meet price caps
 

txtravwill

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Will Rivian add a destination price like all manufacturers to make the cars seem cheaper or is it currently included in the price. Maybe they use that to meet price caps
I'd assume they will add a destination charge on top of the car later when you do final purchase, fees, etc.

If the credit gets limited to $80K for some of you, just lose some of the gear if you added a lot or it would be worth it to even leave something off you can add later (kitchen/wheels choice, etc?)
 

Friscorays

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All this under the big assumption that this ever gets passed. I don't think Rivian workers are currently unionized so the max the max pack would theoretically cost you (besides the 10k actual cost) would be $10k loss in tax credit. I bet it is safe to assume we are all going to see our $7500.
 

ajdelange

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The proposed changes are:
1. Limiting the $7,500 tax credit to EVs with retail prices below $80k.
I thought the object was to speed adoption of BEV's. Why would we want to reduce the incentive of those who buy the most BEVs (people well off enough to afford them)?

4. An additional $2,500 tax credit for EVs assembled by union workers.
Right. What the electric auto industry needs right now in order to make more and better cars is union problems.
 

Friscorays

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Perhaps to encourage development and sales of EV vehicles that are accessible to the majority of the population, which is what is actually required for EVs to make a true environmental difference. That and the recognition that the "well off" might well enjoy the credit but don't actually need it.
 

Atlrivian

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I finally found the language of the bill after 30 minutes of digging. It is attached.

Language is pretty clear and says MSRP. This would imply it is not the base price.

Several thoughts: first, the 80k cap was only just added at the last second before escaping committee. It was not in prior versions of the bill, so is obviously less impotent to the writers of the bill. Second, the bill escaped committe on a party line 14-14 vote, so this has a long way to go.

Even if this passes, I'm sure someone at Rivian is going to realize this is a problem. They may offer some mechanism to extract add-ons like wheel upgrades from MSRP. It would be a separate transaction done by the Guide at time of order. Down side is you couldn't fold in to an auto loan.

Screenshot_20210527-085332_Drive.jpg
 

bajadahl

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Yeah this is a big deal if the 10k battery upgrade ends up costing me 20k.... This is the one thing that will certainly get me to re-evaluate my position on the Max Pack
 

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