A recent announcement by the U.S. Treasury Department indicates a delay for releasing the detailed rules for new tax incentives for electric vehicles. The battery-sourcing requirements that electric vehicles must meet to qualify for up to $7,500 in tax credit will be released in March rather than going into effect on January 1, 2023 as originally planned. In addition to reducing inflation, the Administration’s Inflation Reduction Act (IRA) was intended to promote changes in the electric vehicle (EV) market by building up the domestic battery manufacturing. The delay follows pushback from European and Asian car manufacturers claiming discrimination.
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