LAS VEGAS—U.S. Energy Secretary Jennifer Granholm said her office is working with the Treasury Department on guidance on the revised $7,500 federal eligibility rule. Electric car Tax deduction.
“We work in a very interlocking way. Our people and their people are talking all the time,” Granholm said. car news Following up on Friday’s speech at CES. “Our policy office is working directly with the Treasury Department to ensure this guidance is published and communicated to stakeholders.”
The Reducing Inflation Act would have required the industry to issue proposed guidance to the Treasury by the end of 2022 on how to meet new eligibility rules for EV tax credits on new vehicles. However, the Treasury Department said it would provide directional information instead. Rules may apply.
Granholm said it was important to “send a signal about where things are going” as the Treasury Department delayed the release of guidance related to critical minerals and battery component requirements until March. .
Vehicle sticker pricing and buyer income eligibility rules went into effect this month, but rules related to sourcing critical minerals and battery components won’t go into effect until formal guidance is released. Previously, the tax credit was applied to all new battery electric vehicles regardless of where the vehicle or its components were assembled.
Automakers and industry groups are asking for more clarity.
Granholm said on Friday that the industry and consumer groups “think we have a better understanding of what credits require and what qualifies”, urging OEMs to continue onshore vehicle components. I think it gives us enough momentum to do it.”
“They wanted to point out where we were headed so that everyone could be reassured that we weren’t seeing any major deviations,” she said.
The $7,500 tax credit for new EVs includes a series of increased requirements to source battery components from North America and critical minerals from the United States or its free-trade partners.
By 2024, after Treasury Department guidance is released, 40% of critical minerals will be extracted or processed in the United States or countries with which the United States has valid free trade agreements, or from recycled materials in North America is needed. This will jump to 80% by 2027.
Battery components must be manufactured or assembled in North America 50% by 2024 and 100% by 2029.