The US Senate passed a law that will make many EVs ineligible to incentives, including those from Rivian and Fisker
Reservation holders can receive the credit by making a non-refundable payment toward the vehicle
This will only be possible until the law is signed by the president in the next few days
The Inflation Reduction Act that has just been passed by the US Senate will make a number of changes to the structure of the federal tax credit for EV buyers which will make many vehicles and buyers ineligible.
This is bad news for people who have ordered one of the many new electric vehicles and haven’t been able to take delivery yet due to production constraints.
Indeed, the credit is granted once the vehicle is bought, not when it is ordered, so people who have put a deposit on a new electric model two or three years ago and are still waiting could end up having to pay $7,500 more than expected at the time of delivery.
In order to allow reservation orders the last chance to benefit from the tax credit, Fisker and Rivian came up with a similar solution that will see interested customers turn their reservations into a purchase agreement.
Doing so, and paying the first payment on their new vehicle will allow these buyers to qualify for the $7,500 credit even if they only take delivery of their vehicle next year.
This is helpful for those who already had the intention to buy the vehicle they ordered once it was delivered, but it could cause a problem for others.
Indeed, many EV buyers currently hold reservations for a number of electric vehicles in order to choose the one that gets to them the quickest. For people whose reservations include a Rivian or Fisker vehicle, the next few days will be their last chance to make up their minds and commit to one vehicle in order to receive the credit.
This is because the law will come into effect as soon as the president signs it and the first payment required to secure the purchase is non-refundable, unlike the deposit needed to place an order.