EV Tax Credit Changes Benefit Automakers and Challenge EV Buyers
Originally Published 2 years ago — by TESLARATI
The White House has issued new guidance on federal electric vehicle (EV) tax credits in the U.S., providing a temporary exemption for automakers to switch to domestic minerals for battery production. The updated guidance aims to wean the U.S. battery supply chain off of China and other foreign sources. The exemption allows vehicles utilizing critical battery materials from China and other "Foreign Entities of Concern" to remain eligible for incentives until 2024 for completed batteries and until 2025 for trace critical minerals. The new rules are expected to limit the number of eligible EVs for the credit and require instant access to rebates for buyers.