Fight for your Right to Take Advantage of the US Government's EV Tax Credit - Lobby Your Senator Now!
The US government's Build Back Better bill proposes to increase the electric vehicle (EV) tax credit from $7,500 to $12,500. However, this new incentive has a few caveats that could limit people wanting to buy Rivian vehicles. The household adjusted gross income limit is set at $250,000 for individuals and $500,000 for joint filers. Additionally, only pickups priced up to $80,000 are eligible for the full tax credit. Furthermore, the additional $500 "Made in USA" credit will not be available since Rivian is not unionized.
These restrictions may cause potential buyers of Rivian vehicles to miss out on all or part of the EV tax credit. Lobby your senator about it if you want to see these changes reversed. Some argue that the purpose of the tax credit is to help those less fortunate afford an EV, but others believe its purpose is to entice everyone to get an EV regardless of socioeconomic status.
Those who have already configured their Rivian before the $80k limit was announced may find themselves unable to edit their configuration without waiting until they are contacted by their guide. This means that those who need the Max Pack will not be able to keep things under $80,000 for either the R1T or S models and will have to make a choice between extra range or the tax credit.
Ultimately, the current EV tax incentive is far more lucrative for Rivian than what could come in the BBB plan should it pass through Congress. It does not cap household income nor put a cap on the value of the EV being bought. Since Rivian is largely a premium brand, households with higher incomes are likely looking into buying one of their vehicles and thus would benefit greatly from this incentive. If you don't want to see these changes take effect, contact your senator now and let them know how you feel about it!
What are the requirements to qualify for the full tax credit on a Rivian?
To qualify for the full tax credit, the vehicle must have an MSRP of up to $80,000 and be built in a union shop. Unfortunately, Rivian is not unionized, so it does not qualify for the additional $500 "Made in USA" credit.
Does the Build Back Better bill limit household income to qualify for the tax credit?
Yes, the Build Back Better bill limits household adjusted gross income to $250,000 for individuals and $500,000 for joint filers.
Can I still get the tax credit if my Rivian is over $80K?
No, vehicles with an MSRP over $80K are not eligible for the full tax credit. You may be able to edit your configuration to bring it under the threshold.
Is the purpose of the tax credit to help those less fortunate afford an EV?
The purpose of the tax credit is to entice everyone to get an EV, regardless of their socioeconomic status. An EV on the road is a win, regardless of who is driving it.
What happens if I need the Max Pack but can't keep my Rivian under $80K?
If you need the Max Pack but cannot keep your Rivian under $80K, you will need to either forgo the extra range or the tax credit. Without the tax credit, purchasing a Rivian may not be financially viable. You may need to wait for future generations of EVs that are more affordable and have greater range.
What other incentives are available to help me afford an EV?
There are a variety of incentives available to help you afford an EV. Many states offer tax credits or rebates for purchasing an EV, and some employers may even offer discounts on EVs. Additionally, many utility companies offer discounts on electricity rates for EV owners. Finally, some dealerships may offer special financing or leasing options.