Cleantech & EV'sNews

Rivian R1T and R1S now qualify for (some) of the EV tax credit

After submitting updated documentation, the Rivian R1S and R1T models will, in fact, qualify for at least a portion of the EV tax credit.

Rivian gains back a portion of the EV tax credit

The Inflation Reduction Act, passed last August, provides up to $7,500 in tax credits for buying an electric vehicle. However, there are specific requirements the EV must qualify for to receive the credit.

After delaying for nearly four months, the US Treasury Department finally shared its guidance on the Inflation Reduction Act’s battery and critical mineral sourcing requirements last month.

Starting this week, to qualify, 40% of the critical battery minerals used in the vehicle must be sourced in the US or with its free trade partners (or recycled in North America). In addition, the electric vehicle itself must be manufactured or assembled in North America and under a certain MSRP threshold ($80,000 for SUVs, pickups, and vans, or $55,000 for sedans and other vehicles.)

The US Treasury stated Monday that several automakers would lose access to the $7,500 electric vehicle, including Rivian, Volkswagen, Hyundai, Volvo, and more.

Rivian R1S electric SUV (Source: Rivian)

As a result, both the Rivian R1S and R1T lost eligibility. However, a spokesperson from the company told WGLT on Wednesday it was hoping to get its eligibility restored, saying:

Rivian has submitted updated documentation to the IRS stating that its 2023 R1T and R1S models qualify for the critical minerals sourcing criteria within the Section 30D Clean Vehicle Tax Credit which took effect on April 18, 2023. We expect this eligibility to be reflected on the IRS website pending future updates.

As of Thursday, the IRS website has been updated, allowing R1S and R1T buyers to take advantage of the partial $3,750 EV tax credit.

Rivian manufactures and assembles its electric vehicles at its Normal, Illinois, facility. The other half of the credit requires 40% of the critical battery minerals used in the vehicle to be sourced (or recycled in North America) in the US or with its free trade partners this year. That number will rise to 80% in 2027.

From the comments, it seems Rivian is still aiming to qualify for the full $7,500 EV tax credit this year.

The EV maker also recently revealed it would be opening up its Adventure Network chargers to other brands in a move to receive incentives from the $7.5 million Bipartisan Infrastructure Law investment to build a nationwide charging network. Rivian CFO Claire McDonough said at a recent Bank of America Fireside chat, “That will allow us to have access to some of those government funds.”

Author: Peter Johnson
Source: Electrek

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