Current EVs Wouldn't Quality for New Tax Credits
Aug. 9, 2022—Most electric vehicles on the market today would not qualify for the renewed tax credits due to rules moving through Congress.
The Inflation Reduction Act is set to reinstitute a $7,500 credit toward the purchase of new EVs, but the rules stipulate that 40 percent of battery materials be sourced from North America or from a US trading partner. Currently, most materials come from China, The Verge reports.
Supply chains are moving away from Chinese sourcing, but the process can be slow to get new processors online. The Act has passed the U.S. Senate and has moved to the House for consideration.