Not all electric vehicles are created equal. With the rise in popularity of alternative fuels, automakers like Rivian are putting out new EV models for 2022.
To make things better, the federal government is offering a tax credit of up to $7,500 for new all-electric and plug-in hybrid car purchases in the coming year, but not all brands are eligible. Tesla was phased out of the incentive program in January 2020.
For consumers considering the purchase of a 2022 Rivian R1S SUV or Rivian R1T pickup truck, knowing whether the federal tax credit applies to these vehicles will play an essential part in the buying decision.
The federal EV tax credit
According to the Internal Revenue Code Section 30D, a federal tax credit is available for qualified plug-in electric drive passenger vehicles and light trucks. The maximum tax credit allowed for each eligible vehicle is $7,500 for the 2022 calendar year.
Electric vehicles purchased after December 31, 2009, can claim a $2,500 tax credit. Eligibility requirements state the credit applies to “a vehicle which draws propulsion energy from a battery with at least 5-kilowatt hours of capacity.” An additional $417 tax credit is available for “each kilowatt hour of battery capacity in excess of 5 kilowatt hours.”
The EV tax credit begins to phase out when an automaker manufactures and sells 200,000 qualifying vehicles. Tesla has met that capacity limit, so its customers can no longer take advantage of the tax credit.
Is the 2022 Rivian R1S eligible for the EV tax credit?
According to the official qualification list put out by Fuel Economy, the 2022 Rivian R1T truck is eligible for a federal tax credit up to the maximum allotted amount of $7,500. However, the 2022 Rivian R1S electric SUV is not yet included on the list but is expected to be eligible for the $7,500 tax incentive in the coming months.
Consumers must fill out IRS Form 8936, titled Qualified Plug-In Electric Drive Motor Vehicle Credit, to claim the credit. For vehicles purchased for personal use, the information must also be included on the U.S. Individual Income Tax Return Form 1040. If purchased for business use, the tax credit should be reported on the General Business Credit IRS Form 3800.
The Biden administration recently proposed an increase of the federal tax credit for electric vehicles to $12,500. The proposed legislation included incentives for consumers to purchase an EV made in America by a union workforce.
Road Show reported that the tax incentive increase had not been approved, and it remains questionable whether it will without full Democratic support.
What the 2022 Rivian R1S offers
The all-electric SUV offers three-row seating and, according to MotorTrend, “excellent off-road capability.” The battery allows for a driving range of 300 miles and sits underneath the passenger compartments. There is a motor that powers each wheel.
Towing capacity, while generous at 7,700 lbs, is considerably much less than the 11,000 lbs that the Rivian R1T can pull Cargo space is considerable in the 2022 Rivian R1S with 7.1 cubic feet with all seats folded down. An additional 6.4 cubic feet of space is available when the spare tire is removed from the rear tub.
Technology features include two digital display screens and removable rear speakers for outdoor use.
The 2022 Rivian R1S models are already being delivered to consumers, with more units arriving in the next few months. The starting base price will be around $70,000, and the fully-loaded version will carry a price tag of approximately $91,000.