![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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Mercedes-Benz is sending nearly 5,000 electric vans to Amazon’s European delivery partners in its biggest EV handoff to date. The fleet will hit the streets in five countries in the coming months.
Three-quarters of the fleet are Mercedes’ larger eSprinter vans, while the rest are the more compact eVito panel vans. More than 2,500 are going to Germany, and Amazon says this new EV fleet will help deliver more than 200 million parcels a year across Europe.
This is the biggest EV order Mercedes-Benz Vans has ever received. It builds on a partnership that started in 2020, when Amazon first added more than 1,800 electric vans from Mercedes to its delivery network.
“We’re further intensifying our long-standing relationship with Amazon and working together toward an all-electric future of transport,” said Sagree Sardien, head of sales & marketing at Mercedes-Benz Vans. “Our eVito and eSprinter are perfectly tailored to meet the demands of our commercial customers regarding efficiency and range.”
In 2020, Mercedes-Benz joined Amazon’s Climate Pledge, a commitment Amazon co-founded with Global Optimism to reach net zero by 2040.
Both the eSprinter and eVito are designed with delivery drivers in mind. With batteries tucked into the underbody, the vans offer unrestricted cargo space. Both come standard with the MBUX multimedia system, which supports the integration of automatic charging stops and Mercedes’ public charging network via navigation.
Safety and comfort got upgrades, too. New driver assistance features come standard, and the Amazon vans are customized with shelves and a sliding door between the cabin and cargo area for easy parcel access.
The eVito vans, which were built at Mercedes’ plant in Vitoria, Spain, are ideal for last-mile urban deliveries. They come in 60 kWh or 90 kWh battery options, with peak motor outputs of either 85 kW or 150 kW, and can travel up to 480 km (298 miles) on a full charge.
Meanwhile, the eSprinter is the all-rounder for range and loading volume. Built in Düsseldorf, it comes in two lengths and three battery sizes, with a range of up to 484 km (300 miles). It boasts up to 14 cubic meters of cargo space and can handle a gross weight of up to 4.25 tonnes.
Read more: Amazon places its largest-ever order for electric semi trucks
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It already outsold Tesla in the UK and Europe, but this could be just the start. BYD said it’s launching new vehicles, including EVs, faster than any carmaker in Europe has done so far.
BYD goes all in on Europe with new EVs, PHEVs
BYD took the spotlight earlier this month after launching its most affordable EV in Europe so far. The Dolphin Surf, a rebadged version of the Seagull EV sold in China, starts at just £18,650 (just over $25,000) in the UK.
At a UK launch event, Alfredo Altavilla, BYD’s special advisor for Europe, said (via Autocar) the “Dolphin Surf was the missing piece in the A/B-segment.”
It will compete with entry-level EVs, such as the Dacia Spring, the UK’s cheapest EV, which starts at £14,995 ($20,000).
Yet, the low-cost Dolphin Surf is only one piece of BYD’s master plan. “We have been launching six cars in less than a year,” Altavilla explained, adding, “We are covering all of the most important segments of the European car market.”
Altavilla even boasted that, “I have zero problem in saying I don’t think there has ever been such a product offensive done in Europe as the one BYD is doing.”
Although BYD is best known for its low-cost EVs, like the Seagull, which starts under $10,000 in China, the auto giant is quickly expanding into new segments.
BYD sells luxury vehicles under the Denza Yangwang brands. Denza is BYD’s answer to Porsche and other German luxury brands. Meanwhile, Yangwang is an ultra-luxury brand that will serve as BYD’s tech beacon.
According to Altavilla, this could be just the start. “We’re going to get together again after the summer break for another important reveal, and through the end of the year, there will be others,” BYD’s special advisor for Europe said.
BYD is set to begin production at its new plant in Hungary by the end of the year, enabling the company to customize vehicles for buyers in the region.
“As we go forward into 2026, more and more of the BYD line-up will be specific to this region,” Altavilla explained.
In separate news, BYD announced on Monday that its “Xi’an” car carrier is loaded and ready to ship off to the UK, Italy, Spain, Belgium, and other countries, carrying about 7,000 EVs and PHEVs.
Electrek’s Take
In what was called a “watershed moment,” BYD registered more vehicles in Europe than Tesla for the first time in April.
It also had more vehicle registrations in the UK than Tesla last month, with the Seal U taking the top spot for the most popular plug-in hybrid.
With the Dolphin Surf arriving, local production set to come online later this year, and several new models on the way, BYD is laying the groundwork to capture its share of the European auto market.
According to S&P Global Mobility forecasts, BYD is expected to more than double its sales in Europe this year, with around 186,000 vehicles sold. By 2029, BYD’s sales could double again to around 400,000. Between its plants in Hungary and Turkey, China’s EV leader is expected to have a combined capacity of 500,000 units.
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