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Electric Cars May Be Eligible for Full Tax Credit as US Delays New Rules

  • Rules on battery materials and sourcing now expected in March
  • Change from Jan. 1 may help some automakers’ EV sales
Electric vehicles in a parking lot. 

Electric vehicles in a parking lot. 

Photographer: Toru Hanai/Bloomberg
From

Some restrictions on the electric-vehicle tax credit that were slated to take effect Jan. 1 will be delayed until March after the US Treasury Department postponed issuing related guidance on how to meet the new requirements.

The climate-spending bill pushed through Congress earlier this year included restrictions on the potential $7,500 credit consumers can claim for buying electric vehicles. The goal was to push the auto industry to increase the percentage of battery components made in North America and to favor using critical materials extracted or processed in countries with which the US has a free trade agreement.