Automakers seek clarification from Treasury on EV tax credit

WASHINGTON—Automakers seek clarification from U.S. Treasury on key provisions New tax credit for electric vehicles We also seek as much flexibility as possible to expedite the localization of EV battery and critical mineral supply chains and ensure vehicle eligibility.

Under the recently signed Inflation Reduction Act, the department has until the end of the year to issue proposed guidance. Eligibility Constraintsis designed to incentivize domestic EV production, reduce reliance on foreign supply chains, and prevent wealthy buyers from receiving discounts.

The ministry has solicited comments until November 4 as it is working to develop implementation guidance by the December 31 deadline.

“Automakers and policy makers want this transition to happen more quickly, but increasing access to critical raw materials, expanding manufacturing capacity and expanding domestic supply chains will be a challenge. It’s not going to happen overnight,” he said in a comment filed with the US Treasury Department.

of Revamped $7,500 tax credit For new EVs, it will be split into two halves for qualified vehicles and buyers. Half is based on meeting stringent requirements for battery components from North America by 2024 without sourcing battery components from China or other foreign companies of concern. Sourcing from 2025.

By 2024, the law will require half of the critical minerals used. EV battery Extracted or processed from recycled materials in the United States or a country with which the United States has a valid free trade agreement, or in North America. By 2024 and 2025, his 60% of battery components must be manufactured or assembled in North America.

Sourcing requirements for critical minerals will increase by up to 80% after 2026, requiring 100% of battery components to be manufactured or assembled in North America by 2029.

When the bill becomes law in August, it will require that the covered EVs be assembled in North America. Restrictions on sticker prices, purchaser income, battery components, and sourcing of critical minerals will go into effect on January 1st.

The Biden administration About 20 car models You are eligible for incentives of up to $7,500 through the end of the year for meeting North American final assembly requirements. However, none are eligible for the full credit when additional procurement rules take effect next year, according to the Alliance.

https://www.autonews.com/manufacturing/ev-tax-credits-automakers-ask-treasury-clarity Automakers seek clarification from Treasury on EV tax credit

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