US Reveals Stricter EV Tax Credit Rules

US Reveals Stricter EV Tax Credit Rules

US Reveals Stricter , EV Tax Credit Rules.

Reuters reports that the new electric vehicle tax rules were announced by the U.S. Treasury Department on March 31.

They will result in reduced or eliminated tax credits on some electric vehicles.

The new rules, which are intended to wean America off of depending on China's battery supply chains, are set to take effect on April 18.

A revised list of models that qualify for tax credits will also be published at that time.

Reuters reports that Tesla said a $7,500 tax credit for its Model 3 rear-wheel drive will be reduced as a result.

New conditions were imposed on EV credits within the Inflation Reduction Act that President Biden signed in August.

Such requirements include North American assembly, caps on price and buyer income eligibility, and now, batteries and critical minerals sourcing.

John Bozzella, Alliance for Automotive Innovation CEO, issued a statement.

Some EVs will certainly qualify for a partial credit.

Given the constraints of the legislation, Treasury's done as well as it could to produce rules that meet the statute and reflect the current market, John Bozzella, Alliance for Automotive Innovation CEO, via statement.

President Joe Biden has a goal of making 50% of new vehicle sales in the U.S. EVs or plug-in hybrids by 2030