2021 & 2022 Rivians Qualify for Partial $7500 Tax Credit, Waiting on Details for 2023
Rivian is eligible for the $7500 tax rebate in 2023. Those who have signed a binding contract document before 16 August 2020 are almost certainly eligible for the full $7500 credit. However, those who did not sign the document will have to wait until the IRS releases new regulations to find out if they qualify for the full credit or a partial one. The passage and signing of the bill is largely symbolic with many unresolved details.
Retired individuals should make sure they stay under the income limit for 2023 to get the full $7500 credit. The latest 1.7 trillion bill has some changes for retirement savings, such as raising the age for RMDs to 73 in 2023 and 75 in 2033. Everyone trying to maximize withdrawals for the best tax rates may want to review their algorithms accordingly.
Every Rivian sold in 2022 should get a $7500 credit regardless of the new law being signed. Pre-IRA, they were qualifying and post-IRA, they qualified due to their manufacturing location being in Illinois. The IRS has yet to release the details of the new law, but it is expected that Rivian will qualify for the full $7500 credit.
The new law also includes a provision for electric vehicles purchased in 2021 and 2022. The credit amount is reduced to $3750 for 2021 and $2500 for 2022. This means that those who purchase a Rivian in 2021 or 2022 will only receive a partial credit.
The IRS has not released any information on how they will handle the tax credits for Rivian vehicles purchased in 2023. It is possible that they may follow the same rules as 2021 and 2022, with a reduced credit amount. However, it is also possible that they may allow Rivian to qualify for the full $7500 credit if they meet certain criteria.
It is important to note that the IRS has not released any official guidance on this matter yet. Therefore, it is best to wait until they do before making any decisions about whether or not Rivian qualifies for the full $7500 credit in 2023. Until then, it is wise to stay informed about any changes or updates from the IRS regarding this matter.
In conclusion, Rivian is eligible for the $7500 tax rebate in 2023, but there are still many unanswered questions about how the IRS will handle the credits for those who purchase a Rivian vehicle in 2021 or 2022. It is best to stay informed and wait until the IRS releases more information before making any decisions.
Is Rivian eligible for $7500 tax rebate in 2023?
If you signed Rivian's "binding contract" document before 16 Aug, then yes you are almost certainly eligible for the full $7500. If you didn't sign that, then no one knows yet exactly how the law will be implemented and whether Rivian qualifies for the full credit. You will have to wait until the IRS releases the new regulations to find out, but chances are you will only get a partial credit if any at all.
What is the material sourcing regulation?
Passage and signing of bill largely symbolic with many unresolved details. Only time will tell.
Is it guaranteed that I can get the full $7500 credit?
If you purchase in the first qtr with pre-March pricing you will be good. One of the documents says the material sourcing does not kick in until the requirements are defined and I saw where that has slipped to at least March. You also need to make sure you stay under the income limit for 2023 to get the full 7500 credit.
Will every Rivian sold in 2022 get a $7500 credit?
Yes, every Rivian sold in 2022 should get a $7500 credit. Pre IRA, they were qualifying. Post-IRA, they qualified due to their manufacturing location being in Illinois. The IRS has not yet released the new regulations, so it is unclear if Rivian will qualify for the full credit or a partial credit.
What other documents do I need to sign?
You will need to sign the binding contract document, which is available on Rivian's website. Additionally, you will need to make sure you stay under the income limit for 2023 to get the full 7500 credit.
How can I make sure I stay under the income limit?
The best way to ensure that you stay under the income limit is to keep track of your income throughout the year and adjust your spending accordingly. You should also be aware of any tax credits or deductions that you may qualify for, as these could help reduce your taxable income and put you below the threshold.
Is there any other way to get a $7500 tax rebate in 2023?
Yes, there are several other ways that you may be able to get a $7500 tax rebate in 2023. For example, if you purchase an electric vehicle from another manufacturer before 16 August 2021, you may be eligible for a full or partial credit depending on the model and when it was purchased. Additionally, some states offer their own incentives for purchasing electric vehicles, so be sure to check with your local government for more information.