Fewer new electric vehicles will qualify for a full $7,500 federal tax credit later this year, and many will get only half that, under rules proposed Friday by the U.S. Treasury Department.
The Biden administration on Friday released new rules that will significantly shorten the list of electric vehicles that qualify for federal tax credits. Officials hope the change will push carmakers to move their supply chains out of China and to the United States or its allies.
WASHINGTON (AP) — Fewer new electric vehicles will qualify for a full $7,500 federal tax credit later this year, and many will get only half that, under rules proposed Friday by the U.S. Treasury D…
The Biden administration hopes its guidelines for up to $7,500 in tax credits will encourage automakers to reduce their reliance on China for batteries and raw materials.
The restrictions on foreign content will reduce how many vehicles can qualify for the $7,500 tax credit, at least temporarily. But the administration hopes it will bring long-term growth, jobs and energy security to the U.S.
The US Treasury Department issued updated guidance today about which electric vehicles qualify for the federal $7,500 EV tax credit under the Inflation Reduction Act (IRA) that President Biden signed last year.
The $7,500 tax credit for electric vehicles is changing again. New requirements about battery sourcing are coming into effect, and some vehicles will almost certainly stop qualifying for the credit.
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Many electric vehicles to lose big tax credit under proposed new rules | Since Then
