Rivian exec. claims proposed EV tax legislation gives unfair advantage to larger manufacturers

According to Rivian Automotive, the EV maker will not benefit as much from the proposed federal legislation incentivizing consumers to purchase electric vehicles and trucks as its competitors will.

In a statement to Automotive News, James Chen, Vice President of Public Policy at Rivian, claimed, “Nearly all of our vehicles would be ineligible for incentives.”

The $7,500 federal incentive only covers EVs that cost $80,000 or less, including related costs, which is Rivian’s issue. Additionally, the annual income of a buyer may not exceed $150,000, or twice that for a pair.

Chen goes on to say, “As currently drafted, this legislation will pull the rug out from consumers considering the purchase of an American-made electric vehicle. The final package must extend the transition period to provide consumer choice and protect good-paying manufacturing jobs here at home.”

According to the pending federal climate bill, a tax credit is given to eligible electric vehicle buyers that fall into a specific category. The tax credit is set at $7,5000, but the vehicles must be less than $80,000. Single-family homes need to earn less than $150,000 to qualify for the tax credit. The annual income is doubled for buyers filing married and with two incomes. There is a slightly smaller tax incentive for buying used EVs.

Rivian is currently restructuring how they employ and run their operations. They have announced they will lay off 50 non-manufacturing workers but will continue to hire for manufacturing roles.

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