Tax Credit Proposal - House Bill 11/3

[TessP100D]

Tesla doesn't make 18650s in the Model S and Model X.

Tesla doesn't make 2170s for Model 3 or Model Y.

Tesla doesn't make Prismatic LFP for MiC base Model 3 and Model Y.

Tesla is currently making 4680s in California but hasn't installed them in a vehicle being currently sold.

Old news.

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[Sgt Beavis]

Tesla doesn't make 18650s in the Model S and Model X.

Tesla doesn't make 2170s for Model 3 or Model Y.

Tesla doesn't make Prismatic LFP for MiC base Model 3 and Model Y.

Tesla is currently making 4680s in California but hasn't installed them in a vehicle being currently sold.

I'm just ignorant on this. I thought Tesla made batteries in the gigafactories. Aren't those Tesla owned factories?

 

[SeaGeo]

Old news.

then why did you question his statement?

 

[Autolycus]

I'm just ignorant on this. I thought Tesla made batteries in the gigafactories. Aren't those Tesla owned factories?

Tesla essentially just lets Panasonic use floor space in the factory, and even that is just for the batteries for the 3 and Y. The S and X batteries still come from Japan last I saw.

 

[Rob Stark]

I'm just ignorant on this. I thought Tesla made batteries in the gigafactories. Aren't those Tesla owned factories?

As Autolycus said Tesla rents space to Panasonic which manufactures the cells. Tesla employees are not allowed into the Panasonic section of the Gigafactory.

Tesla takes delivery of the 2170s puts them into modules and then into battery packs.

GF Nevada also produces the motors for Model 3/Y.

 

[FamilyTruckster]

Outstanding news as far as increase in MSRP limits from those previously proposed.

As far as options bringing certain Rivian configurations over the 80k limit, does anybody know for sure how the government defines MSRP. Is MSRP considered base vehicle price or is it considered as optioned vehicle price?

I'm curious about this also. Is the EV tax credit based on the base vehicle price or the price after options.

 

[Autolycus]

I'm curious about this also. Is the EV tax credit based on the base vehicle price or the price after options.

The bill itself just says MSRP. The IRS will have to issue a regulation or formal guidance on what that means.

 

[sub]

The bill itself just says MSRP. The IRS will have to issue a regulation or formal guidance on what that means.

My guess is that the IRS will base eligibility off of the VIN. The big options that show up in the VIN may impact eligibility but things like color/wheels/kitchen/tent will probably not.

 

[Autolycus]

My guess is that the IRS will base eligibility off of the VIN. The big options that show up in the VIN may impact eligibility but things like color/wheels/kitchen/tent will probably not.

That would be a very good result, IMO. Based on current R1 pricing, that would mean any Explore or Adventure trim would qualify, regardless of other options chosen. It might, unfortunately, mean the max battery would not. The battery doesn't seem to be reflected in the VIN right now, but I have a hard time believing that it won't be reflected in the VIN once it's actually being manufactured.

It would be a shame if someone has to chose between 20" AT tires, off-road package, their preferred paint color, or Forest Edge because it would cost them a $7500 tax credit.

I'm sure the Camp Kitchen, Tent, etc. will be priced outside of MSRP for the vehicle itself, so those _shouldn't_ come into play for the tax credit. If they do, Rivian will probably come up with a simple solution, like letting you order for the same price and including it in the warranty as long as it's ordered with 7 days (or similar) to delivery of the vehicle.

 

[endress14]

and also a shame that some people can't get the tax credit even if they order the base explore with no options ??‍

 

[Tim-in-CA]

and also a shame that some people can't get the tax credit even if they order the base explore with no options ??‍

That'd be me. ?

 

[Sgt Beavis]

There is now talk of dropping the Union requirement.
https://www.rollcall.com/2021/11/16/democrats-might-drop-union-bonus-for-electric-vehicle-credit/

 

[Autolycus]

There is now talk of dropping the Union requirement.
https://www.rollcall.com/2021/11/16/democrats-might-drop-union-bonus-for-electric-vehicle-credit/

Manchin wants the union requirement gone. Every Dem Senator from a state with an auto plant for a brand other than GM, Ford, or Stellantis should want it gone too.

I've said it before, but that dang well better include the 2 from Georgia who were just elected and are why this bill is even a possibility. There's a battery plant being built in in Georgia (SK Innovations), so the 2 GA Senators should support the "Domestic Content" bonus $500, but their constituents in West Point who work at the Kia plant should be lobbying hard to change the "Domestic Assembly" bonus to be just final assembly in the US (without the collective bargaining requirement). Ohio I believe also has a Dem Senator and some non-UAW plants.

 

[TXR1S]

They are considering “a potential compromise that would allow the bonus credit for any electric vehicles assembled in the U.S., not just those subject to collective bargaining agreements. “I’d be open to something along those lines, yeah,” he said.”

This would be a great outcome.

 

[nfrank]

That would be a very good result, IMO. Based on current R1 pricing, that would mean any Explore or Adventure trim would qualify, regardless of other options chosen. It might, unfortunately, mean the max battery would not. The battery doesn't seem to be reflected in the VIN right now, but I have a hard time believing that it won't be reflected in the VIN once it's actually being manufactured.

It would be a shame if someone has to chose between 20" AT tires, off-road package, their preferred paint color, or Forest Edge because it would cost them a $7500 tax credit.

I'm sure the Camp Kitchen, Tent, etc. will be priced outside of MSRP for the vehicle itself, so those _shouldn't_ come into play for the tax credit. If they do, Rivian will probably come up with a simple solution, like letting you order for the same price and including it in the warranty as long as it's ordered with 7 days (or similar) to delivery of the vehicle.

It would be a shame if max pack made a vehicle ineligible. That would encourage people not to use a BEV for road trips and goes against the intent of the rebate.

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