WASHINGTON— Leased vehicles will likely be able to qualify for new commercial electric vehicle tax credits without meeting stringent mineral and battery requirements or being built in North America, according to U.S. Treasury Department guidance released Thursday.
It's a victory for automakers like Rivian Automotive, Hyundai Motor and Kia Corp., as well as the South Korean government, all of which have urged the government to broadly interpret the definition of "commercial clean vehicles" in the recently passed Inflation Reduction Act to include leased cars, rental cars and cars used for rideshare fleets such as Uber and Lyft.
It goes against the wishes of Sen. Joe Manchin, the conservative Democrat from West Virginia who shaped the legislation and who asked the Treasury Department not to allow leased vehicles to qualify.
