A revamped $7,500 tax credit for new electric vehicles and $4,000 for used ones is part of President Biden's new climate and health care bill.
Singles and couples filing jointly who earn up to $350,000 per year will qualify for the program.
Electric cars' high cost has long been a major obstacle to their adoption. Currently, an electric vehicle costs on average $66,000.
Buyers who source 40% of the minerals in EV batteries from free trade agreements could get a credit of $3,750.
Other components of the battery cost $3,750. From 2023 onwards, 50% of components must be manufactured in North America.
For EV batteries, minerals from North America and nations with a free trade agreement with the U.S. must be used.
Compared to competitors with tax credits, Rivian's market position puts it at a disadvantage in the current market.
Due to new requirements set by automakers, it will be difficult for buyers to qualify for the full $7500 tax credit.
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