US Treasury Implements Stricter EV Tax Credit Regulations

The US Treasury has released new regulations for the EV tax credit, which will become a point-of-sale rebate from January 1, 2022. Until then, customers have until April 18 to get the full credit, provided the car they are buying or leasing has its final place of assembly in North America and the sales price is $55,000 or less for sedans and wagons or $80,000 or less for SUVs and light trucks. The new regulations are confusing and have left everyone unhappy, including manufacturers and customers. The purpose of the federal tax credit is to encourage manufacturers to build electric cars in North America using batteries that are manufactured using materials and components from approved countries.