Dec. 27, 2022—The United States Treasury Department has announced that its proposal of guidance on electric vehicle battery sourcing will be delayed until March 2023, according to Reuters.
A $7,500 electric vehicle tax credit goes into effect on Jan. 1, but this announcement "means some electric vehicles that will not meet the new requirements may have a brief window of eligibility in 2023 before the battery rules take effect," according to Reuters.
There are multiple requirements for tax credits that go into effect in January, including buyer income caps and retail price caps for certain vehicles that qualify. Treasury's announcement "means some buyers could receive tax credits for purchases of electric vehicles that ultimately will not comply with battery sourcing rules when finally unveiled," according to Reuters.
The Inflation Reduction Act was signed into law in August 2022, and it gave the Treasury until the end of the year to tackle battery sourcing questions and rules. Treasury has stated that it will announce information that is relevant to the direction it plans on taking with these rules on Dec. 31, 2022.
