Does the Rivian R1T Pickup Truck Qualify for the Federal EV Tax Credit?
Tax credits can be a lifesaver for those who want to switch to electric technology but can’t quite afford to do so. Automakers like Rivian can get you behind the wheel of an EV, and when tax time rolls around, you can claim the purchase on your taxes, as long as the model qualifies. How do these credits work, and does the Rivian qualify?
What does the Federal Tax Credit do?
With concerns over climate change, the government has stepped in to help the environment by eliminating as many gas-driven vehicles as they can. To motivate buyers into moving toward electric vehicles, they developed a program where an owner of an EV can deduct a certain amount of money from their taxes, provided specific regulations are met.
How much you can claim on your income tax depends on several factors. First, the vehicle had to be acquired after December 31, 2009. If the vehicle qualifies, you can receive anywhere from $2,500 all the way up to $7,500.
Battery capacity is another area that will help determine how much you claim. For five kilowatt-hours, you add $417. For every hour above that, you can add $417 more.
With the Democrats’ recent proposal, the tax credit could go up to $12,500. The program also wants to increase the MSRP caps to include pricier vehicles while lowering income requirements, but no plans have been made official yet.
Do all electric vehicles qualify?
While the tax credit helps some owners save money, not all EVs qualify for it. Some vehicles, like Tesla, can no longer be claimed. The automakers that have produced over 200,000 units of any model will be phased out from the incentive.
Tesla far surpassed that. They’re not the only ones, though. According to the IRS website, as of April 1, 2020, GMC has been phased out with its Bolt, Volt, Cadillac, and Spark vehicles.
The newer manufacturers that are just getting their feet wet, like Rivian, who produces the R1T electric pickup, have no problem getting the $7,500 incentive.
It’s also possible that you could qualify for a program in your local area. Check with your state to see if they offer a savings plan for your electric vehicle purchase.
What you can expect with the 2022 Rivian R1T
The Rivian R1T is a new kid on the block for electric pickups. This new automaker competes with Tesla and other manufacturers that are beginning to move away from gas-powered cars, SUVs, and trucks.
The first model the brand plans to roll out is the launch edition truck. This will come with 300-miles of driving range on the battery pack. Eventually, a larger one will be available that offers 400 miles of range.
According to Car and Driver, all-wheel drive is standard on the R1T, but it’s a little different setup than most vehicles. The Rivian has an electric motor powering each wheel. With all motors combined, the truck can generate up to 800 hp and go from 0 to 60 in 3.0 seconds.
It can tow up to 11,000 lbs and haul up to 1,760 lbs in the bed. When it comes to fuel economy, you can expect 74 mpge on city roads and 66 mpge when traveling on the highway.
The interior comes with a 16-inch infotainment display with Apple CarPlay and Android Auto. As for safety equipment, it has lane-departure warning, automated emergency braking, and adaptive cruise control as standard features.
If you’re looking to get your hands on an electric car, SUV, or pickup, check to see if the one you’re interested in comes with a tax incentive to help save some money. The Rivian R1T offers enough benefits on its own, but add the $7,500 tax credit, and it makes it even more appealing.