The Treasury Department proposed new rules for determining which EVs will be eligible for tax credits under the Inflation Reduction Act.
The
rules aim to make the U.S. less dependent on batteries and critical
minerals imported from China. The new requirements are expected to
reduce the number of eligible EV models.
- For
EV owners to be eligible to claim the full $7,500 tax credit, the car
battery must have a certain amount of components made in North America.
- Also, other critical minerals for the vehicle must be sourced in the U.S. or from certain friendly countries.
- The new requirements go into effect on April 18.
- The EV tax credit program aims to make electric vehicles more affordable and accelerate the shift to clean energy.
- The program has income caps of $300,000 for married couples, $225,000 for heads of households, and $150,000 for others.
