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US updates EV tax credit rules, enabling more electric cars to be eligible
Hey there, are you interested in electric vehicles?
Well, you're in luck!
The U.S. Department of the Treasury and Internal Revenue Service (IRS)
have just updated the EV tax credit rules, making more electric cars eligible for the credit.
The reform, launched in 2023,
removed the limit of 200,000 vehicles per manufacturer
and added eligibility criteria for EV buyers and EV MSRPs
to limit tax breaks for expensive vehicles.
The Biden administration introduced new protectionist initiatives,
requiring vehicles to be assembled in North America
and gradually higher percentages of battery materials and components to be produced in North America
or in countries with free trade agreements with the US.
The treasury department and IRS have decided to relax some of those rules,
especially regarding the sourcing of graphite, electrolyte salts, binders, and additives,
until 2027, enabling more electric vehicles to keep access to the tax credit.
With these changes, more electric vehicles are expected to become eligible
as automakers adapt to the new rules.
Stay tuned for more updates on the evolving landscape of electric vehicle tax credits!
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