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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