Eagerly anticipated federal guidance on the EV tax credit released Friday, will ultimately limit which electric vehicles qualify for the $7,500 tax credit under the Inflation Reduction Act (IRA). The proposed rules set out requirements for critical minerals and battery components that must be met for an EV or “clean vehicle” to qualify for the full $7,500 tax credit. Vehicles that don’t meet all of the requirements, could end up being eligible for only half the tax credit ($3,750), or in some cases, no credit at all.
The Treasury Department, in a statement, described the clean vehicle guidance as “an important step that will help consumers save up to $7,500 on a new clean vehicle and hundreds of dollars per year on gas, while creating American manufacturing jobs and strengthening our energy and national security.”
