The Treasury Department had until December 31st to issue draft guidance on procurement rules, but missed the statutory deadline. Instead, the department plans to issue guidance in March.
After it goes live, the $7,500 tax credit for the new EV, known as the 30D, will be split in two halves for eligible vehicles and buyers. Based on meeting growing requirements. The other half is based on key minerals from the United States or our free trade partners.
“In short, it’s not unreasonable,” Stavenow said of the Treasury Department’s delay. I believe it was.”
Treasury delays may open up more vehicles to qualify for full credit in the interim. However, Manchin said allowing vehicles to take credit without meeting the procurement rules would be against Congress’ intent in the law.
The Treasury Department has not commented on Manchin’s bill.
Abigail Wulf, vice president of critical minerals strategy for SAFE, formerly known as Securing America’s Future Energy, told policy bystanders that the strict procurement requirements had reinforced Manchin’s previous opposition to the EV tax credit in the first place. I quickly reminded him that this was what made him reconsider, stating: His latest move is “not surprising.”
“It is critical to the national security and economic competitiveness of the United States to ensure that the mineral supply chain critical to EVs is not overly concentrated or dependent on strategic competitors who do not share our interests and values. “This underscores the importance of the Treasury Department issuing clear guidance on rules quickly to meet the dual objective of ensuring supply chains to keep pace with other countries.” doing.”
Nearly 40 new models could qualify for the full tax credit between January 1 and the time the Treasury Department issues the required EV battery procurement guidance, according to the IRS listing. However, under Manchin’s bill, eligibility during that period is severely restricted, with few or no vehicles eligible for the critical mineral portion of the credit.
The Alliance for Automotive Innovation, a trade group representing the U.S. auto industry, also said no vehicles would be eligible for full credit once EV battery procurement rules take effect.
“What we need to do now is reduce consumer confusion about tax credit availability, not increase it,” Alliance CEO John Vozella said Thursday. said in a LinkedIn live chat. car news.