Tax Credits and Other Benefits of Purchasing an Electric Vehicle: Make the Most of the Build Back Better Bill
Electric Vehicles (EVs) are becoming increasingly popular, and the Build Back Better bill is offering tax credits to incentivize their purchase. However, certain restrictions have been placed on the tax credit in order to ensure that those who can afford EVs without the tax credit do not receive it. These restrictions include a maximum MSRP of $80,000, as well as an adjusted gross income limit of $250,000 for individuals and $500,000 for joint filers. Additionally, the bill gives more credit to vehicles made by unionized workers, which could be problematic for customers of Rivian since they are not currently unionized.
While these restrictions may seem unfair, it is important to remember why we are encouraging people to buy EVs in the first place. We need to make sure that everyone does their part in helping our planet become cleaner and healthier. Therefore, when considering purchasing an EV, it should be done for the right reasons – not just because it’s a good deal financially. The government has put incentives in place to help us all move towards clean energy sources and reduce our carbon footprint. Let's take advantage of them while we can!
The Build Back Better bill also includes other incentives for EV owners, such as access to high-occupancy vehicle lanes and free parking in certain areas. This is great news for those who are looking to save time on their daily commute or need a place to park their car without having to pay extra fees. Additionally, the bill provides grants and loans for businesses that want to install charging stations at their locations – this could be beneficial if you own an electric vehicle dealership or service center.
Finally, the Build Back Better bill has allocated funds towards research into new technologies related to EVs. This means that we can expect more advancements in battery technology and charging infrastructure over the next few years which will make owning an EV even easier than it already is! We should all take advantage of these opportunities while they last so that we can continue making progress towards a cleaner future.
Overall, there are many benefits associated with purchasing an Electric Vehicle thanks in part due to the Build Back Better Bill’s tax credits and other incentives mentioned above. It's important not only from a financial standpoint but also from environmental perspective too - let's do our part by taking advantage of these programs while they're available!
Does Rivian qualify for the full tax credit in the Build Back Better bill?
No, Rivian does not currently qualify as a union shop. The only available EV that qualifies is the Chevy Bolt EUV. The Ford Mustang EV is made in Mexico and the Ford F150 Lightning would qualify when it is available.
What are the requirements to receive the full tax credit?
To receive the full tax credit, you must have a single adjusted gross income of less than $250,000 and the MSRP of your truck/SUV cannot exceed $80,000. Additionally, vehicles must be made by a unionized worker.
Should I buy an EV just for the government subsidy?
No, you should buy an EV because you want to help create a cleaner planet. Government subsidies should not be your primary motivation for buying an EV.
Is there any incentive to organize a union at Rivian?
Not really. The starting pay and benefits for an assembly line worker at Rivian are comparable to Ford & GM, from what can be found online. Furthermore, workers do not have to pay union dues.
Could the Senate version of this bill eliminate the union requirement?
Yes, there are a number of Democrat Senators from states with non-union auto manufacturers who could influence the final bill and potentially eliminate the union requirement.
Will I still get a tax credit if my vehicle costs more than $80,000?
Unfortunately, no. The way the bill is written, it looks like the $80,000 restriction is an absolute limit, above which there is no credit. If that's the case, no Rivian with the Max option will qualify.
Are there any other incentives for buying an EV?
Yes, there are a number of other incentives. For example, some states offer tax credits or rebates on the purchase of an EV. Additionally, many employers offer discounts on charging station installation and electricity costs. Finally, many cities have free parking and access to HOV lanes for EVs.