The Inflation Reduction Act (IRA) continues to cause headaches and this time it’s impacting EV tax credits. In particular, the United States Department of Treasury has delayed sourcing requirements, which were originally slated to go into effect on January 1st, 2023.
In a press release, the Department of Treasury said they will “issue a notice of proposed rulemaking in March with proposed guidance on the critical minerals and battery components requirements.” More importantly, “by statute, the critical mineral and battery component requirements take effect only after Treasury issues that proposed rule.”
Also: These 34 Electric Vehicles Won’t Qualify For Biden’s New EV Tax Credits
While some aspects of the IRA have made EVs less attractive, the delay is a boon for consumers as CNBC noted electric vehicles that weren’t expected to comply with sourcing requirements will still be eligible for incentives until the proposed guidance is issued. This means consumers will have a few more months to make up their mind and the publication also noted “other non-battery elements of the IRA will still take effect January 1st.”
This should include the lifting of the production cap, so the Chevrolet Bolt and Bolt EUV could become an absolute steal as they currently start at $25,600 and $27,200 before destination. If they become eligible for the full $7,500 credit, they’d drop to $18,100 and $19,700 respectively.
While the sourcing requirements have been delayed, the Department of Treasury said they will “release information on the anticipated direction of the critical mineral and battery component requirements” before the end of the year. This will give automakers extra time to “prepare to be able to identify vehicles eligible for the tax credit when the new requirements go into effect.”
