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New EV tax credit requirements were introduced by the U.S. Treasury Department. These adjustments are expected to make more electric cars more eligible for EV tax credits.

The US Treasury Department introduced new EV tax credit requirements. These adjustments are expected to make more electric cars eligible for EV tax credits.

New EV Tax Credit Requirements To Make More Electric Cars Eligible

According to Electrek's latest report, the IRS (Internal Revenue Service) and the US Department of Treasury updated EV tax credit rules. This was announced on Friday, Apr. 3.

The reformed federal incentive for EVs has been in effect for over a year, but the US government frequently updated it. The EV tax rules under the 2022 Inflation Reduction Act have been finalized.

The Associated Press reported that this finalization will give automakers more time to comply with the new provisions regarding where they should get their battery minerals.

EV Tax Credit Requirement Changes

The US Treasury Department announced various changes in EV tax credit requirements. These include the following:

• Complicated regulations in EV tax credits are being removed to encourage the development of a domestic EV supply chain.
• New rules will limit EV consumers from claiming tax credits if they buy electric cars with battery materials from China and other countries hostile to the US.
• In 2024, around 50% of critical EV battery minerals should be mined and processed in the US or other countries with free trade agreements.
• Around 60% of the battery components should be assembled or manufactured in North America.
• Until 2027, small amounts of graphite and other minerals would be exempted from restrictions.

This latest EV tax credit effort is expected to help the Biden Administration achieve its goal of making 50% of all US vehicles electric by 2030.

Tags

Electric cars, EV, US Treasury Department