![The EV tax credit may be going away, but Rivian EVs could still qualify in 2026, including the R2 [Update]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/05/Rivian-tax-credit-R2.jpg?resize=1200,628&quality=82&strip=all&ssl=1)
The EV tax credit may be going away, but Rivian EVs could still qualify in 2026, including the R2 [Update]
While the current majority in DC shared intentions to likely kill the existing $7,500 federal EV tax credit, some language in a (very fluid) proposal suggests that not all automakers will be immediately affected. For example, Rivian is an American automaker whose sales are young enough that US consumers might still be able to take advantage of the tax credit, and that could also include the upcoming R2 EVs.
May 13, 2025: As expected, the House Ways and Means Committee published markups of “The One, Big, Beautiful Bill” to the public domain. As we reported below, the proposal includes ending several federal tax programs on December 31, 2025.
That includes termination of the Qualified Commercial Clean Vehicles Credit and the Alternative Fuel Vehicle Refueling Credit, as well as the Energy Efficient Home Improvement Credit.
Lastly, the proposal includes a termination of the Clean Vehicle Credit at the end of this year. However, as originally reported below, there is an exception for automakers who have not sold at least 200,000 vehicles between December 31, 2009 and December 31, 2025.
That means Rivian EVs could very well still qualify for federal tax credits through December 31, 2026.
The past two years, federal tax credits for EV sales through the Inflation Reduction Act have done wonders for US adoption, helping give consumers the last little push they needed to go all-electric with at least one vehicle in their home.
It was great while it lasted.
These days, the current administration has its sights set on a delusional idea of “success” from the past, trying to breathe new life into dying industries like coal and, yes, combustion vehicles. EV adoption was never going to happen overnight, but recent discussions among the GOP stating it is likely to kill the federal EV tax credit is disheartening news.
We’ve already long-surpassed “critical mass” in the US adoption process, so it’s a fair wager that EVs are here to stay and will continue increasing their market presence. While most makes and models are likely to be disqualified from federal EV tax credits after 2025 (only about 20 or so currently qualify these days), some proposed exceptions in place will allow credits to continue for American companies like Rivian, for example.
Proposal states Rivian EVs could qualify for tax credits after 2025
According to Reddit user u/FiveDollarHoller, they are a lobbyist in the midst of Washington’s discussions to repeal the federal EV tax credit. According to the post, the US House Ways and Means Committee will finalize its tax title this week.
According to proposal shared by reliable source close to the lobbyist, a slew of credits will be eliminated on December 31, 2025, including the following:
- Used EV credit
- Clean Vehicle Credit
- Qualified Commercial Clean Vehicle Credit
- Alernative Fuel Vehicle Refueling Proprty Credit
We share the same sentiment as the lobbyist in that this proposal remains fluid and discussions are ongoing, so the details of these plans could have already changed by now and most likely will change before everything is approved through the necessary government channels.
One interesting tidbit in the current proposal is an exception within the $7,500 Clean Vehicle Credit for OEMs that have not sold 200,000 vehicles by December 31, 2025. If that exception makes its way into the final legislature, EVs from Rivian, including the R1S and R1T, could still qualify for tax credits.
Better still, Rivian recently shared that it remains on track to begin scaled production and deliveries of its second flagship model, the R2, in 2026, meaning customers of that BEV could also qualify for federal tax credits.
At the end of 2024, Rivian had sold 51,579 compared to 50,122 a year prior and 20,332 deliveries in 2022. Per its recent Q1 2025 quarterly report, the American automaker targets 40,000 to 46,000 deliveries in 2025. By those numbers, that puts Rivian around approximately 168,033 total deliveries if it hits the high end of its 2025 outlook.
As such, Rivian’s numbers would fall below the 200,000 sales threshold outlined in the current proposal. Again, this is hearsay at most until we get a legitimate proposal publicized by the Capitol. Still, it’s a noteworthy potential perk for companies like Rivian if it comes to fruition. It could also incentivize more US consumers to purchase a Rivian since it could be one of the only OEMs that still qualify (along with Lucid, probably).
Per the IRS, despite being built in Normal, Illinois, the Rivian R1 models are not listed as qualified BEVs for the $7,500 tax credit. We will have to see how this all plays out in the coming days and months.
Per the Reddit post, the complete text of the EV tax credit repeal proposal is supposed to be shared today (Monday) at 2 PM. Once a bona fide proposal is in place, it will still need to be approved by the House Ways and Means Committee, then the House, followed by the Senate (which may be a lot more challenging to get approved).
We will monitor this process closely, which will likely last well into 2025, and will report on what EVs (if any) may still qualify for federal tax credits next year and whether that will include Rivian. Regardless, if you’re pondering the idea of purchasing a BEV (Rivian or not), you should try to take delivery before the end of the year because the federal EV tax credit doesn’t appear long for this world.
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Honda announced that it is pausing about $15 billion in planned EV investments to build electric vehicle and battery factories in Canada amid uncertainty over trade.
It’s the latest example of Canada’s backing the US plan backfiring.
A few years ago, Canada sided with the US in its plan to save the US auto industry, which was falling behind the rest of the world in the transition to electric vehicles.
Canada agreed to heavily tariff Chinese EVs to keep them away from the North American market, which mainly helps the US auto manufacturing industry, and in return, Canada’s EV production was included in Biden’s IRA to encourage foreign automakers to invest in EV production in both US and Canada to get access to the US market.
However, when Trump came into power earlier this year, he threw a wrench into this entire plan by canceling IRA funding, planning to kill the EV tax credit, and placing tariffs on many countries, including Canada.
It has resulted in planned investments in the EV sector in Canada to cool down.
Now, one of Canada’s most significant EV investments has been paused.
Honda has announced that it is pausing for two years its plan to establish a massive new EV production base in Canada:
“Due to the recent slowdown of the EV market, Honda Motor has announced an approximate two-year postponement of the comprehensive value chain investment project in Canada. The company will continue to evaluate the timing and project progression as market conditions change.”
The investment was announced just over a year ago. It was supposed to include a new EV factory in Ontario and a battery factory, totaling more than $10 billion in investments.
It was supposed to create over 1,000 jobs in Ontario and help retain the 4,200 jobs at Honda’s current assembly plant in Ontario, which are threatened by the electric transition.
Electrek’s Take
Canada is taking a beating here and all for mostly just protecting the US auto industry.
As I have been saying for a while, at this point, you should just invite the Chinese automakers to join.
You can do a deal à la India, where you remove tariffs for Chinese automakers willing to invest in the EV supply chain in Canada.
There’s no point in protecting the US automakers if the US is purposefully destroying the Canadian auto sector.
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A new company out of Germany called ONOX is bringing sustainable technology to the agriculture industry. After garnering design awards, the ONOX electric tractor prototype is in operation overseas as its makers look to scale and bring its unique modular design, complete with swappable battery packs, to farms everywhere.
It’s been less than two years since ONOX hit the tech scene with a prototype of its flagship electric tractor, which debuted at Agritechnica 2023 in Hanover, Germany. In April of 2024, the German startup’s electric tractor was awarded an iF Design Gold Award.
That same summer, the ONOX1 finalized commissioning before entering an extensive test phase. By December, the startup had snagged another trophy – the Federal Ecodesign Award. This past February, the ONOX electric tractor received road approval in Germany and began operations while the design team continues its mission of making electric agricultural machinery a reality.
The ONOX electric tractor is unique in that it utilizes modular battery swap technology, in which farmers can choose from three different mounting areas (see below).
ONOX’s electric tractor could breathe new life into farming
Since the ONOX electric tractor remains a prototype, many of its specs are targets and estimates, but the initial design is quite impressive. The electric tractor’s motor offers peak power of 70 kW with over 2,400 Nm of torque up front and over 5,500 Nm in the rear. ONOX’s targeted top speed is 40 km/h (~25 mph).
The ONOX tractor features an integrated 20-kWh battery pack and room for additional swappable packs of 30 kWh each. The entire system operates on 48V power, so maintenance is safer and easier for users without further training since there is no risk of exposure to high-voltage components.
The ONOX design team has also integrated an Airline system with mounting rails on the tractor’s hood, enabling future owners to mount cargo, haul hay or produce, or customize the area with other parts. The front of the tractor is also front-loader-ready, adding to its modularity and versatility.
The ONOX website says the electric tractor is self-sufficient using its own solar energy, but from the specs and images we’ve seen, there is no evidence of any solar technology implemented on the current prototype. Perhaps they mean the swappable batteries can be charged using solar when not installed on the tractor.
We will monitor ONOX’s progress as electric tractor development continues en route to commercial sales.
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Toyota upgraded its electric SUV in just about every way possible. The 2026 Toyota bZ is refined from end to end with a fresh new style, more driving range, advanced new tech, and much more. It even has an NACS port, so you can charge at Tesla Superchargers. Here’s our first look at Toyota’s new EV.
Meet the 2026 Toyota bZ electric SUV
Remember the bZ4X? It’s currently the only EV Toyota sells in North America. It’s now called the “bZ,” and it’s better than ever.
The 2026 Toyota bZ has an estimated driving range of 314 miles, a 25% improvement over the outgoing bZ4X. It also has a built-in NACS charging port, unlocking access to Tesla’s vast Supercharger network across North America.
Toyota said the upgraded EV can charge from 10% to 80% “under ideal conditions” when using DC fast charging. With added Plug & Charge capabilities, charging has never been easier.
The AWD models now have up to 338 hp, a 50% improvement thanks to new SIC semiconductors. Front-wheel-drive (FWD) models deliver 221 hp, up from 201 HP in the 2025 bZ4X.
Other upgrades, including battery pre-conditioning and a thermal management system, help optimize charging speeds in cold weather.
Battery options and driving range
The 2026 Toyota bZ will have two battery options: 57.7 kWh and 74.7 kWh. Toyota estimates that the larger (74.7 kWh) battery will provide up to 314 miles of range, while the smaller (57.7 kWh) option will get up to 236 miles.
Toyota upgraded the electric SUV inside and out. The exterior features Toyota’s new “hammerhead front end,” which is shown on updated vehicles like the Camry and Crown. The new styling includes redesigned front overfenders and slim LED daytime running lights.
The interior received a few upgrades, including a redesigned center console. The setup now includes a larger 14″ Toyota Audio Multimedia touchscreen, two wireless phone chargers, and a slimmed-down dashboard.
Standard features include a 7″ driver display screen, heated front and rear seats, regenerative braking, Toyota Safety Sense 3.0, and more.
Upgrading to the Limited trim will gain you 20″ black alloy wheels, multi-LED headlights, SofTex®-trimmed seats, ventilated front seating, and added safety/ driver assist features. Other options include a panoramic moonroof with power sunshade (XLE) and a premium 9-speaker JBL Audio system (Limited).
.
| 2026 Toyota bZ trim | Battery | Range (Manufacturer estimated) |
| XLE FWD | 57.7 kWh | 236 miles |
| XLE FWD Plus | 74.7 kWh | 314 miles |
| XLE AWD | 74.7 kWh | 288 miles |
| Limited FWD | 74.7 kWh | 299 miles |
| Limited AWD | 74.7 kWh | 278 miles |
According to Toyota, the new name will help simplify things for buyers. We suspect it’s also designed to revamp the brand’s sole EV after a slow (to say it nicely) rollout in North America. The bZ4X was recalled shortly after launch over concerns that the wheels may fall off.
The 2026 Toyota bZ is expected to arrive at dealerships in the second half of 2025. Check back for more info as prices will be revealed soon.
With the upgraded 2026 model arriving, Toyota is offering close-out prices on the 2024 and 2025 bZ4X. The 2024 bZ4X is listed with up to $19,000 in lease cash, while 2025 models can be leased for as low as $269 per month. You can use our link to find deals on the 2024 and 2025 Toyota bZ4X in your area today.
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