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Would you convert your refundable pre-order to a binding non-refundable order?

Would you convert your refundable pre-order to a binding non-refundable order?

  • Yes -- to preserve this year's $7500 tax credit

    Votes: 87 85.3%
  • No -- pre-order still qualifies and/or prefer the new tax credit

    Votes: 3 2.9%
  • No -- for other reasons

    Votes: 5 4.9%
  • Undecided -- will await the fate and content of the legislation before deciding

    Votes: 7 6.9%

  • Total voters
    102

lambo

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Under the proposed legislation which appears likely to pass, many pre-orders may not qualify for the full $7500 tax credit. Fisker has announced a plan to allow pre-order holders to convert existing refundable orders to binding pre-orders to preserve the current tax credit.

If Rivian announced a similar program would you take advantage of it?
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Yossarian

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Only Rivian buyers who are fortunate enough to have an executed preliminary buyer's agreement in place before the new bill becomes law will be grandfathered under the existing regulation. It looks like Fisker is trying to help potential buyers out by getting a PBA in place, and it's possible that Rivian will follow suit. Time is very short however; the new bill could be signed into law as early as next weekend.

While most of the discussion about the new EV tax credit bill WRT Rivian buyers is centered on the income cap and the $80k MSRP threshold, the bigger issue for applicability may the sourcing requirements.

The language is pretty dense, but it looks like beginning in 2023, at least 40% of the battery components must be extracted or processed in the United States or in a country with which the United States has a free-trade agreement to quality for $3,750 (half) of the total credit. That percentage rises to 80% by 2027. To qualify for the other the half of the credit, at least 50% of the battery components must be US made, with that rising to 100% by 2029.

It appears that most EV's presently available - including Rivian - do not meet either sourcing threshold, making the other qualifiers moot in those cases. I've been reading that the agencies tasked with implementing the law are aware of that, and already considering delaying the implementation of some of the rules to help qualify more vehicles. That will help some EV's, but most Rivian buyers won't benefit unless they also defer/delay the MSRP threshold.
 

ElCapiTan

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Yes, and with this I'd climb back onto the Ocean Coast waiting hill.
 

PAFDenver

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I think I'd do the PBA even though I think I would still qualify under the new rules. I would just want to be certain. My bigger question is whether Rivian's batteries qualify for the $7500, $3750 or $0.
 

Yossarian

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I think I'd do the PBA even though I think I would still qualify under the new rules. I would just want to be certain. My bigger question is whether Rivian's batteries qualify for the $7500, $3750 or $0.
If you get a PBA in place before the new EV bill (i. e., the Inflation Reduction Act) becomes law, you will be covered under the existing tax regulations and would be able to quality for the $7,500 as a tax credit when you file your Federal tax return. The sourcing thresholds are not part of the existing credit scheme and come into play in 2023.

There is very little time to execute an agreement; my guess is that the Inflation Reduction Act will be law by next weekend. It's also not clear that Rivian is willing or even able to enter into PBA's for reservation holders whose deliveries are not imminent. I plan to ask my guide tomorrow morning about the possibility of putting a PBA in place by next weekend, but suspect the short timeline makes the likelihood remote.
 

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Gamma rays

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I am going to sound like a broken record to those who have seen my posts on this topic in other threads. For me, absolutely and I am even willing to pay in full upfront to lock in my tax credit!

GR
 

ThatRivianGuy

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I have a delivery date in 2023 so I’d do it. The transition section of the law would give me the option of choosing the existing rebate or use the 2023 rules when they go into effect 1 Jan 2023.
 

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protamine

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I am going to sound like a broken record to those who have seen my posts on this topic in other threads. For me, absolutely and I am even willing to pay in full upfront to lock in my tax credit!

GR
At first I thought you were crazy but a 10% guaranteed roi in a year isn’t bad.

I’d plunk down 5-10k
 

Gamma rays

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At first I thought you were crazy but a 10% guaranteed roi in a year isn’t bad.

I’d plunk down 5-10k
Exactly! Unless Rivian goes bankrupt within a year and I get nothing in return for my $70K+, there is no reason for me not to.

GR
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