The electric automaker Rivian says it expects the federal government will restore its eligibility for a portion of a tax credit enacted last year to encourage EV purchases.
Rivian and several other automakers lost access to the tax credits this week when the U.S. Treasury Department rolled out its new rules. All-electric, plug-in hybrid, and fuel cell electric vehicles purchased new in 2023 or after are eligible for the federal tax credit of up to $7,500 depending on certain conditions, such as the vehicle’s MSRP (price), its final assembly location, battery component and/or critical minerals sourcing, and the buyer’s income.
Rivian was bumped out of eligibility for its 2023 R1T (pickup) and R1S models. But a spokesperson told WGLT on Wednesday that it’s hoping its eligibility is restored soon.
“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,” the Rivian spokesperson said.
Pending the government’s review of that documentation, Rivian customers would be eligible for a partial tax credit of $3,750. (To be eligible for the $3,750 critical minerals portion of the tax credit, the percentage of the value of an EV battery’s critical minerals that are extracted or processed in the U.S. or a U.S. free-trade agreement partner or recycled in North America must be at least 40% for 2023, rising to 80% in 2027 and beyond.)
Rivian’s trucks and SUVs are made in Normal. The trucks start at $73,000, the SUVs at $78,000.
The state of Illinois also offers an EV Rebate Program for up to $4,000.
