RE:RE:RE:RE:RE:RE:Final rules on IRA clean vehicle provisions issued Here yah go.
The final rules on the clean vehicle provisions of the Inflation Reduction Act (IRA) provide the following key details:
The IRA allows a maximum credit of $7,500 per new clean vehicle, consisting of $3,750 for meeting critical mineral requirements and $3,750 for meeting battery component requirements.[1][2]
To qualify for the full $7,500 credit, a new clean vehicle must meet certain requirements related to critical minerals and battery components, including:
- Critical minerals: At least 40% of the value of the critical minerals in the battery must come from the U.S. or countries with which the U.S. has a free trade agreement.[3]
- Battery components: At least 50% of the value of the battery components must be manufactured or assembled in North America in 2023, increasing to 100% by 2029.[3]
The final rules also provide guidance on the "foreign entity of concern" (FEOC) restrictions, requiring manufacturers to ensure battery materials are not sourced from excluded entities.[2]
Additionally, the rules allow for the clean vehicle credit to be transferred to dealers at the point of sale, making the credit available upfront rather than when filing taxes.[2]
The final regulations are effective 60 days after publication in the Federal Register, which is scheduled for May 6, 2024.[1]
Sources
[1] Final regulations: Guidance on clean vehicle credits https://kpmg.com/us/en/home/insights/2024/05/tnf-final-regulations-guidance-on-clean-vehicle-credits.html
[2] U.S. Department of the Treasury Releases Final Rules to Lower ... https://home.treasury.gov/news/press-releases/jy2323
[3] Treasury Releases Proposed Guidance on New Clean Vehicle ... https://home.treasury.gov/news/press-releases/jy1379
[4] Section 30D New Clean Vehicle Credit - Federal Register https://www.federalregister.gov/documents/2023/04/17/2023-06822/section-30d-new-clean-vehicle-credit
[5] IRS releases final guidance for certain clean vehicle credits under ... https://www.irs.gov/newsroom/irs-releases-final-guidance-for-certain-clean-vehicle-credits-under-the-inflation-reduction-act