How do I claim the federal EV tax credit using a binding order agreement?
Prior to the signing of the Inflation Reduction Act, Rivian offered existing preorder holders the chance to sign a “binding order agreement” to purchase their Rivian vehicle. For any preorder holders who signed on or before August 15, 2022, we hoped this document would allow them to apply under the prior IRC 30D federal tax credit requirements.
The IRS has now released guidance on how taxpayers with valid written binding contracts signed on or before August 15, 2022 can claim the original EV tax credit—without restrictions on vehicle MSRP, buyer income, and manufacturing requirements—even if they take delivery of their vehicle in 2023 or later*.
Please note two key considerations:
From the Guidance: “To elect the credit under the prior rules you must elect the credit on your 2022 tax return after you take delivery of the vehicle. Depending on the date the vehicle is delivered, you can claim the credit on your original, superseding, or amended 2022 tax return.”
From the Instructions: “Taxpayers who took delivery in 2023 or after must use August 15, 2022 as the date placed in service when filing out Form 8936.”
Unsure what category you fall into?
If you took delivery of your Rivian in 2022, you can apply for the previous IRC 30D federal EV tax credit without needing a binding order agreement.
If you’ve already taken delivery of your Rivian in 2023 AND signed a binding order agreement before August 16, 2022, follow the instructions above to file as part of your 2022 tax return.
If you haven’t taken delivery of your Rivian yet AND signed a binding order agreement before August 16, 2022, follow the instructions above once you’ve taken delivery (you’ll have to file an amendment for you 2022 tax return at that time).
For more information, please read the guidance shared by the IRS. As a reminder, ultimate eligibility for tax credits is determined by the IRS. We recommend you consult with a tax professional for questions about your specific situation.
*tax return amendments cannot be done indefinitely. Please consult a tax professional for further detail.
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