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Tax Credit Proposal - House Bill 11/3

TXR1S

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kanundrum

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TXR1S

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Also now limited to “1 [credit] per taxpayer per year”.
 

Scott

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Once again: hard caps are stupid. That 80k limit for the R1S would make many option combos unreasonable. With the base MSRP $2k lower, it is a little better for the R1T, but still limiting. For the R1S you can't get a paid paint option, forest edge interior, and the off road package and stay under the limit. Forest Edge becomes a 10k upgrade, or the off road package becomes a 9.5k upgrade when paired with any of the $$ paint options.

I expect if this goes in to effect you will see a lot of pricing changes on the R1S add ons.

I am fine with the lowered income caps (regardless of their impact to me).
 
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Diddy123

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I'll read it myself if I have to, but do the income limits phase out the credit, or does it go to zero if you earn a dollar over the limit?
Phase out but pretty steep. Looks like you lose $200 in credit for every $1000 you're over the limit.
 

Dbeglor

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I'll read it myself if I have to, but do the income limits phase out the credit, or does it go to zero if you earn a dollar over the limit?
I got it, it's a phased reduction but a very quick one ($200 per $1,000 over the AGI limit). They also look at current and prior year AGI.

‘‘(d) LIMITATION BASED ON MODIFIED ADJUSTED 15 GROSS INCOME.— 16 ‘‘(1) IN GENERAL.—The amount of the credit 17 allowable under subsection (a) for any taxable year 18 shall be reduced (but not below zero) by $200 for 19 each $1,000 (or fraction thereof) by which— 20 ‘‘(A) the lesser of— 21 ‘‘(i) the taxpayer’s modified adjusted 22 gross income for such taxable year, or 23 ‘‘(ii) the taxpayer’s modified adjusted 24 gross income for the preceding taxable 25 year, exceeds ‘‘(B) the threshold amount. 2 For purposes of the preceding sentence, the term 3 ‘modified adjusted gross income’ means adjusted 4 gross income increased by any amount excluded 5 from gross income under section 911, 931, or 933. 6 ‘‘(2) THRESHOLD AMOUNT.—For purposes of 7 paragraph (1), the term ‘threshold amount’ means— 8 ‘‘(A) $500,000 in the case of a joint return 9 or surviving spouse (half such amount in the 10 case of a married individual filing a separate re11 turn), 12 ‘‘(B) $375,000 in the case of a head of 13 household, and 14 ‘‘(C) $250,000 in any other case.
 

Dbeglor

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Phase out but pretty steep. Looks like you lose $200 in credit for every $1000 you're over the limit.
Yep, so phased out completely by $540k joint or $290k single.
 

Gimmeoneofeach

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$80k limit is an outstanding change. I don’t think it limits Rivian options unrealistically. Even with R1S, Adventure Package, $2500 paint, off road package, that’s exactly $80k. Now, maybe you also want forest edge interior? In that case just get white paint and paint the car yourself later. Any other options you would like (tires, adventure gear) can be purchased separately after the fact. You still come out ahead with a $7500 rebate.
 

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So what about the incentive for companies to provide charging - is that still in there? That will incentivize Tesla and Rivian to open up their chargers!
 

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Thanks for sharing the update.

Just sent another round of feedback to Rep and both Senators asking them to advocate for a phase out on the MSRP cap.
 

emoore

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$80k limit is an outstanding change. I don’t think it limits Rivian options unrealistically. Even with R1S, Adventure Package, $2500 paint, off road package, that’s exactly $80k. Now, maybe you also want forest edge interior? In that case just get white paint and paint the car yourself later. Any other options you would like (tires, adventure gear) can be purchased separately after the fact. You still come out ahead with a $7500 rebate.
Makes getting the max pax more difficult. Can't get the and the adventure package. Also can't get max pack with the offroad and AT tires, have to choose one or the other.
 

moondog417

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Transferability is also a huge development. If Rivian chooses, they can take the tax break and pass it to the customer at point of sale as a credit.
(Not sure if this had been discussed elsewhere.)
 

moondog417

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Makes getting the max pax more difficult. Can't get the and the adventure package. Also can't get max pack with the offroad and AT tires, have to choose one or the other.
That’s a fair point. Forgot that max pack is going to be an option on the R1T. (I’m buying an R1S so not thinking about the truck.) Maybe Rivian will do like Tesla and sell a software limited version to drop the MSRP, then sell you an after market OTA option to unlock the rest of the capacity.
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