The Biden administration’s requirements for electric vehicle tax credits will reduce the number of models eligible for incentives until tens of billions of new investment in US manufacturing by automakers and suppliers kick in.
The guidance released Friday clarifying provisions of the Inflation Reduction Act — President Joe Biden’s landmark climate bill — will leave few EVs eligible for up to $7,500 credits as of April 18, administration officials said. The reason: most don’t meet new requirements that battery components or critical minerals are sourced from North America or US free trade partners.
