The Inflation Reduction Act (IRA), the Democrats' stripped-down environmental and economic package, appears to have enough traction to pass and with it comes tax perks for electric vehicle buyers. Rivian isn't part of the crowd celebrating this legislative milestone as the bill enters the final stretch. The bill will increase the cost of some electric vehicles in the short term despite the benefits of climate change.

The bill seems to be poised to pull the rug out from consumers considering purchase of an American made electric vehicle. If you are already in the market for a high-end EV, like a Rivian, with models ranging from $67,500 to $98,000, you should be happy. If you want the largest possible tax credit, you need to pay close attention to this bill.

Foreign battery parts are a problem

There is a huge problem for manufacturers in China.

According to a report from the Federal Consortium for Advanced Batteries, a government group led by the Department of Energy, China makes 76 percent oflithium batteries, compared to 8 percent in the U.S. By 2029, this requirement will be 100 percent. Huge, wrenching changes to the battery supply chain have to happen over the next seven years if these tax credits are going to benefit EV consumers.

Meet the new tax credit: not as generous as the old tax credit

Rivian stated in a press release on Friday that the tax laws currently in force are more favorable to Rivian's present day buyers than the new ones will be. According to Tony Caravano, Rivian's head of customer engagement, "an electric pick-up truck or SUV must be priced below $80,000 and the buyer must be below certain income thresholds to qualify."

Rivian just increased the price of the R1S electric SUV by $12,000 in March, so these provisions must sting. The price of an R1S before that was $72,500. For buyers to be eligible for the full credit, they must make less than $150,000 as an individual income-earner or less than $300,000 as a couple.

If you were going to buy a Rivian, you should know that the tax credit is about to disappear. Rivian has a solution that will allow buyers who have a written contract to purchase a qualified EV before the Inflation Reduction Act becomes law.

Consumers can immediately enter into a contract on the page provided by Rivian. You can give the company a non-refundable $100 deposit if you click here.

The provision of the IRA is not an issue for most buyers of more economically priced EV like the Nissan Leaf. Many Rivian cars will be eligible for the tax credit. There's no time like the present to ask the company for a "written binding contract" like the one Rivian is.