If you've ordered a Rivian, reading this could save lots of money.
Rivian is in a race against time to provide customers who paid for reservations with the $7,500 tax credit.
This week, the Senate passed the Inflation Reduction Act by one vote, so the bill is on its way to the House. There's not much standing in the bill's way at the moment, so those with Rivian pre-orders need to act quickly.
Rivian has more reason to be angrier than most because it was far from getting to the 200,000 cut-off point under the old rules. The new laws will see the credit rebate extend, but only for cars under a certain price.
We crunched the numbers and found that only 12 EVs qualify for the $7,500 rebate, which technically won't be a tax credit any longer. It will be applied at the point of sale.
Rivian is also at a disadvantage because it only has the capacity to build 25,000 trucks and delivery vehicles this year. With 83,000 reservations, there's no way all of its customers can benefit from the existing tax credit.
There is a way around it, however. Shortly after the new bill hit the news, Rivian was inundated with customer letters asking to start the buying process. Instead of just paying the required deposit, prospective customers want a binding contract to secure the tax credit before the new laws kick in. Even if deliveries take place a year or two, Rivian and the government must stick to all agreements made before President Biden signs the Inflation Reduction Act into law.
Rivian has now come out and stated that it will give customers this option but that they need to hurry. The bill has passed through the Senate, and the next stop is the House of Representatives. It's doubtful the House will vote against it, after which it requires the President's signature. If all goes well, it should be wrapped up by the end of the week.