Senate Republicans Target $7,500 EV Lease Credit, Rivian R1 Buyers Could Lose Key Incentive

A new Senate GOP tax plan could abruptly end the $7,500 federal credit that many Rivian R1T and R1S buyers access through leasing. The bill would eliminate the lease credit for foreign-built EVs immediately and phase it out for North American-built models, like Rivian’s, within 180 days of becoming law.

Rivian customers haven’t qualified for the credit on purchases due to battery sourcing rules, so leasing has been the only way to unlock the incentive. Without it, buyers would face full sticker prices with no federal help.

The proposal is part of a broader push to roll back clean energy provisions from the Inflation Reduction Act. It would also phase out used EV credits and sharply reduce solar and wind tax incentives starting in 2026.

While loans for U.S.-built vehicles could still qualify for tax-exempt interest through 2028, that benefit is capped for those earning under $100,000.

With Rivian scaling production and preparing for the more affordable R2, the loss of federal support could dampen momentum. For now, there’s still a short window to lease and capture the credit before it disappears.