SUVs and pickups priced up to $80,000 are eligible for the full tax credit. To get your Rivian to qualify for it, what options and features did you leave out?
How did you spec your Rivian to qualify for the $80,000 EV tax credit?
Joined
·
2,718 Posts
That is true and it turns out they are not unionized (changed my OP to reflect this)
Reuters: Workers at Rivian's plant in Illinois are not unionized. Founded in 2009 as Mainstream Motors by Scaringe, the company was renamed in 2011 as Rivian, a name derived from "Indian River" in Florida, a place Scaringe frequented in a rowboat as a youth. - Nov 10, 2021
Problems with build back better bill for people wanting to buy Rivian:
1) household adjusted gross income limit: $250,000 for individuals and $500,000 for joint filers
2) MSRP of truck/SUV cannot exceed $80K
3) Gives more credit to vehicles that are " made by a unionized worker" - which rivian isn't.
All of these issues can cause a Rivian buyer not to get any/all of the tax credit. Lobby your senator about it.
Some people have written the purpose of the tax credit is to help those less fortunate afford an EV. I argue that the purpose is to entice everyone to get an EV, regardless of your socioeconomic status. An EV on the road, is a win, not a poor person in an EV is a win. Rich people drive cars too, and if they get a deal on an EV through rebates, they are more likely to buy it rather than an ICE Porsche or and ICE F-150.
1) household adjusted gross income limit: $250,000 for individuals and $500,000 for joint filers
2) MSRP of truck/SUV cannot exceed $80K
3) Gives more credit to vehicles that are " made by a unionized worker" - which rivian isn't.
All of these issues can cause a Rivian buyer not to get any/all of the tax credit. Lobby your senator about it.
Some people have written the purpose of the tax credit is to help those less fortunate afford an EV. I argue that the purpose is to entice everyone to get an EV, regardless of your socioeconomic status. An EV on the road, is a win, not a poor person in an EV is a win. Rich people drive cars too, and if they get a deal on an EV through rebates, they are more likely to buy it rather than an ICE Porsche or and ICE F-150.
IF it passes, as it hasn't yet...I have an LE Adventure R1T in Limestone, with 21" wheels (which will be boring for some), crossbars, kayak mount, all weather mats and wall charger...coming in at 75,845...not all the bells and whistles, I guess...but under the 80K, and that is my original configuration, before the limit on the tax credit was even a discussion...
Joined
·
331 Posts
100%
This push for EVs purchases now will make it easier for folks lower down the socioeconomic ladder to eventually buy one.
We're not yet ready for cheaper EVs but this will speed up that process.
Europe already gets the ID.3, we do not.
My R1S Adventure comes out at $79,950. I am purchasing this as a street vehicle with towing capacity. I left of all of the accessories except the charger. Those accessories have the same price in the configurator as in the on-line store.
01 Build
$79,950
01 Build
- Adventure Package
$75,500 - Large pack
Included - El Cap Granite
$1,500 - 21" Road wheels
Included - Compact spare tire
$450 - Off-Road Upgrade
$2,000
- Black Mountain
Included - 7 seats
Included
- Wall Charger
$500
$79,950
Joined
·
574 Posts
Unfortunately, those of us who need the Max Pack will not be able to keep things under $80,000 for either the R1T or S models.. If the $80k threshold becomes the law, we will need to either forgo the extra range or the tax credit. The Max pack is essential for my needs, but the Rivian is a real stretch for me financially and frankly, is not viable absent the tax credit.
Since I'm at retirement age, I was hoping to make the Rivian (or equivalent EV) my last car purchase. That alternative is still a possibility, but affordability and more inportantly, range issues, may combine to obviate the option for the near future. In that event, I may be able to wait for the next generation of less expensive and greater range EV's, but with time a significant issue, would likely result in making my "forever" car another ICE vehicle.
Since I'm at retirement age, I was hoping to make the Rivian (or equivalent EV) my last car purchase. That alternative is still a possibility, but affordability and more inportantly, range issues, may combine to obviate the option for the near future. In that event, I may be able to wait for the next generation of less expensive and greater range EV's, but with time a significant issue, would likely result in making my "forever" car another ICE vehicle.
In my estimation, the current EV tax incentive is far more lucrative for Rivian than what could come in the BBB plan (should it make it through congress). The current EV credit law doesn't cap household income at any level nor put a cap on the value of the EV being bought. Rivian is largely a premium brand given their offerings. The Rivian brand is not intended to compete with low-cost EV offerings by any shape of the imagination.
While I have no statistics to present, my gut tells me a large contingent of the folks looking to spend well in to the 80k's for a vehicle have a household income that exceeds 250k. Even if you assuming households with an income of $150k are looking to spend more than half that on a Rivian truck, the fact it isn't built with union labor is going to dramatically reduce the credit available per the current terms of the BBB plan.
While its possible the EV credit terms being negiated in the BBB plan change before it is ultimately passed, I am not of the opinion that the key sticking points of the bill are related to the current EV credit language. The EV credit language seems largely set in stone from what I can tell and the bigger focus is the SALT deduction being increased, paid maternity leave and what benefits get adding to Medicare (hearing, dental, etc). In other words, Ill be shocked if much changes in the BBB plan in the senate that makes this bill anything other than a big bust as it relates to Rivian sales.
While I have no statistics to present, my gut tells me a large contingent of the folks looking to spend well in to the 80k's for a vehicle have a household income that exceeds 250k. Even if you assuming households with an income of $150k are looking to spend more than half that on a Rivian truck, the fact it isn't built with union labor is going to dramatically reduce the credit available per the current terms of the BBB plan.
While its possible the EV credit terms being negiated in the BBB plan change before it is ultimately passed, I am not of the opinion that the key sticking points of the bill are related to the current EV credit language. The EV credit language seems largely set in stone from what I can tell and the bigger focus is the SALT deduction being increased, paid maternity leave and what benefits get adding to Medicare (hearing, dental, etc). In other words, Ill be shocked if much changes in the BBB plan in the senate that makes this bill anything other than a big bust as it relates to Rivian sales.
You are a prime example of why the current EV credit is so much better than what is current in the BBB plan. Its comical to me that this this new potential law is being pitched as a "expansion" of the current credit. For the bulk of purchases its a massive contraction of the current credit.
Rivian R1T (Adventure - CR, BM, 21", Ordered 10/5/2021, Delivered 6/24/2022), Suburban 2500, VW ID.4
Joined
·
262 Posts
You can with max pack and Explore, at least on the R1T. Even have room for the color of your choice.
I'm not getting too worked up about this tax credit yet. Write your Senator and tell them you are against it, and wait for the final legislation to pass (if it does at all).
I am in exactly the same position that you are!
Joined
·
17 Posts
I am guessing the bbb won't pass, but who knows. I read somewhere that apparently the bbb ev tax credit was not expected to apply retroactively, so that's another messy detail that will probably only be finalized when/if it gets passed, would it be for all of 2022 or what. I fantasize about getting an email from the big R before the end of this year, but my may-june 2022 date feels infinitely far off. I did adjust my LE order to be just under 10k just in case.
My preference would be a dual system
My preference would be a dual system
- to encourage lower income purchases to afford an ev, give a direct rebate like the bbb approach, maybe income limits, aimed at less expensive cars?
- perhaps a smaller tax credit for more expensive cars also with some income limits?
Joined
·
36 Posts
At this point the BBB bill appears highly unlikely to pass. Thus the old $7,500 tax credit will remain in effect. Colorado has an additional state tax credit of $2,500. If you live in another state, check to see if anything is available. Your local utility company may also offer benefits. Mine will help with your in home charger installation. Finally, check your car insurance company. Farmers Insurance (my insurance company) offers a discount for electric cars.
I was able to add the bed cover to my existing order. You should be able to delete options the same way.
Joined
·
688 Posts
I believe they use the base MSRP price which does not include the options. OR's credit is for $50k and below. I submitted factory invoice for $52k but it was under $50k without options and I got the credit.
Should be a lot of Tesla buyers who had over $80 total price but still got the Federal rebate as the options are what took it over $80k. See if some of them can speak to it.
Should be a lot of Tesla buyers who had over $80 total price but still got the Federal rebate as the options are what took it over $80k. See if some of them can speak to it.
2015 Tesla Model S 85D, 2019 Toyota 4Runner TRD OffRoad
Joined
·
616 Posts
$80k limitation is not a thing. It was in a proposed bill that never passed. The only limitation currently is the cap on number of vehicles per manufacturer that qualify. Rivian is a LONG way from hitting that cap.
Joined
·
14 Posts
Well, remember that the caps represent your adjusted gross income. Many higher income earners can have enough itemized deductions to get their income under the capped figures. As for my specific case, my R1T w/Max Pack is over the $80,000 limit, so if it were delivered in 2023 I would not get the tax credit. If I got it in 2022 (not possible) I would get the credit. So, if I were to change my order to Large battery instead of Max, then I would get the tax credit (I ordered pre-price increase) regardless of whether it was delivered in 2022 or 2023. I just have to decide whether the $7500 savings is worth the reduced range.
1 - 20 of 29 Posts
