US government tightens eligibility for EV tax credits.
The US Treasury Department has issued stricter electric vehicle (EV) tax rules that will reduce or cut tax credits on some zero-emission models but grant buyers another two weeks before the new requirements take effect. The rules are aimed at weaning the US off dependence on China for EV battery supply chains and part of President Joe Biden's effort to make 50% of US new vehicle sales by 2030 EVs or plug-in hybrids. The EV battery sourcing guidance issued on Friday triggers new requirements for critical minerals and battery components and takes effect for vehicle purchases starting April 18.