The U.S. Treasury Department has delayed the publication of full guidance on standards for the revised federal electric vehicle tax credit until March.
The IRA re-increased the $7,500 federal EV tax credit and removed the previous 200,000-unit limit that some automakers had hit since January 1, but it also sets forth limits regulations on minerals and battery components so that vehicles are eligible to receive full quantities.
The Treasury Department said information “on the expected direction of key mineral and battery component requirements that vehicles must meet” to qualify for the credit under the revised standards issued. along with the Inflation Reduction Act (IRA) coming before the end of the year. in a press release, but full details won’t be available until next year.
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The Treasury Department now plans to publish proposed rules for key mineral and battery components in March, with the requirements taking effect once the rules are enacted, under the IRA act.
This happened after the IRS (which is part of the Treasury Department) said that the rules will be fast trackedand it has recently set the stage for a deeper level of inquiry Reports from car manufacturers and sellers.
Even vehicles that don’t qualify for the full $7,500 amount may qualify for a $3,750 credit if both final assembly and 50% assembly of components take place in North America. . An additional amount, inevitably tied to that guideline, would require 40% of the battery’s vital minerals to be processed in the United States or in a U.S. free-trade partner, or if the battery recycling process occurs in North America, according to the EPA. Alternative fuel data center.
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That seems to suggest that some US-made, battery-powered vehicles of US origin are eligible for the $3,750 credit from January 1 onwards. Since General Motors, which has already reached its old credit limit, will lift it, Chevrolet Bolt EV and EUV are among the models that will begin to benefit from the new regulation.
By the end of the year, you can buy EV or PHEV and is eligible for a tax credit if it’s made in the US. The Treasury Department will announce the implementation timeline for the new tax credit rules after the proposed rules are published in March.
Regardless of the exact result, the new requirements are expected to cut sharply number of qualified vehicles for the near future. And that means EV buyers will face a confusing bottom line until then — especially as some automakers may predictive price reduction boost.