Tag: ev
The New EV Tax Credit Is a Total Mess
For those unaware, the electric vehicle tax credit is officially back and bigger than ever. The Inflation Reduction Act of 2022 changed which new EVs get a tax break and adds a federal tax credit on select used EV sales, but the requirements are more strict than ever. It’s a big complicated mess.
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The New Climate Bill Demands All-American EV Batteries
Battery investment moves onshore to kick-start US EV production
Living With Climate Change: Thinking about an EV? First-ever $4,000 tax credit for used electric vehicles, and $7,500 for new, gets OK from Congress
Rivian is not a fan of the new EV tax credit and you might not be either
The Inflation Reduction Act (IRA), the Democrats’ pared-down environmental and economic package, appears to have enough momentum to pass and with it comes tax perks for electric vehicle buyers. But as the bill enters the final stretch, the EV company Rivian isn’t among the crowd celebrating this legislative milestone. Despite the climate change benefits touted by backers of the IRA, it looks like the bill will actually increase the cost of some EVs in the short term.
Or, as a Rivian representative told Reuters on August 3, it seems the bill is poised to “pull the rug out from consumers considering purchase of an American made electric vehicle.” So if you’re already in the market for a high-end EV like a Rivian, with models ranging from $67,500 to $98,000, first of all, congratulations on having all that disposable income. But second of all: If you want the largest possible tax credit, you need to look closely at this bill.
Foreign battery parts are a problem
To start with, there’s a giant, looming problem for manufacturers and that problem is called China.
According to a 2021 report from the Federal Consortium for Advanced Batteries, a government group led by the Department of Energy, China makes 76 percent of lithium batteries, compared to eight percent in the U.S. The version of the IRA that just passed in the Senate, and looks like it’s about to pass in the House, will require that, by 2024, the materials in EV batteries be at least 40 percent sourced from either North America or a partner country under a free trade agreement with the U.S. Otherwise, the buyer of said EV doesn’t qualify for the full $7,500 tax credit. This sourcing requirement jumps to 100 percent by 2029. That means huge, wrenching changes to the battery supply chain have to happen over the next seven years if these tax credits are going to benefit EV consumers in the long run.
Meet the new tax credit: not as generous as the old tax credit
But Rivian detailed yet another likely problem in a press release on Friday: The tax laws currently in force are more favorable to Rivian’s present-day buyers than the new ones will be. “Under these new restrictions,” writes Tony Caravano, Rivian’s head of customer engagement, “an electric pick-up truck or SUV must be priced below $80,000 and the buyer must fall below certain income thresholds to qualify.”
These provisions of the bill must sting particularly for Rivian because the company just increased the price of the R1S electric SUV by $12,000 to $84,500 in March. Before that, the price of an R1S would have been below this new price threshold, at $72,500. And as for those income requirements, for buyers to qualify for the full credit, they must make less than $150,000 as individual income-earners or less than $300,000 for those filing jointly.
So if you were about to buy a Rivian, the takeaway is that there’s a good chance your tax credit is about to disappear. But Rivian has a solution, according to the press release: “Fortunately, buyers who have a ‘written binding contract’ to purchase a qualified EV before the Inflation Reduction Act becomes law will be able to apply under the current IRC 30D tax credit requirements.”
Rivian then provides a page where consumers may immediately enter into just such a contract. If you click here, you too can formalize your Rivian purchase today by giving the company a non-refundable $100 deposit.
Most buyers of more economically priced EVs, like the Nissan Leaf or the Kia Niro EV, don’t need to worry about this provision of the IRA. In fact, even many Rivian vehicles will qualify for the new tax credit. But if you’re entertaining the thought of buying, say, a $169,000 Lucid Air, and you’d like the cost to come down a tiny bit, there’s no time like the present to ask the company for a “written binding contract” like the one Rivian is offering.
EV laggards BMW and Toyota to partner on hydrogen fuel cell vehicles
Porsche Taycan Turbo S leapfrogs Tesla Model S Plaid to become fastest production EV at the Nürburgring
The Nürburgring racetrack has been home to decades of vehicle testing and benchmarking, and a place where automakers continue to push the limits of ICE and EV models for bragging rights. The latest feat has been accomplished by Porsche, whose Taycan Turbo S four-door posted the fastest lap time for…
GMC Issues the First Hummer EV Hardware “Recall”
General Motors has announced a “Customer Satisfaction Program” to repair its Hummer EVs battery high-voltage connector over potential issues. Earlier this year, GM released a software update to fix a taillight recall, but this is the first notable physical fix for the manufacturer.
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IKEA will install Electrify America’s fast EV chargers at over 25 US stores
You might not have to worry about charging your EV the next time you’re shopping for build-it-yourself furniture. IKEA has struck a deal to bring Electrify America’s fast chargers to more than 25 stores in the US. The rollout will bring over 200 individual chargers to shops in 18 states, including California, Florida, New York, Texas and Washington. They’ll offer charging speeds between 150kW and 350kW, and will serve both customers as well as IKEA’s fleet.
The first chargers will be available near the end of 2022. The companies expect to complete the rollout by the end of 2023.
The IKEA deployment is tiny compared to Electrify America’s overall expansion plans, which should have 1,800 fast charging stations (10,000 chargers) in place across North America by the end of 2025. However, this is still a significant launch. This guarantees reasonably speedy charging for compatible EVs (such as the Ioniq 5 and Taycan) at one of the most popular furniture chains in the country — you can buy that dresser knowing you’ll have the range to carry it home. That could spur EV adoption, not to mention help IKEA support its claims of being eco-friendly.