On Friday, March 31, 2023, the Internal Revenue Service and the Treasury Department made their rulings public.
More boxes must be checked to qualify for the $7500 tax credit.
If you want the full credit and can buy soon
- See our previous January 19, 2023 summary. It has some excellent links to items you need to reference to make a quick decision (which cars qualify, laws as of 2023, etc.)
- Make sure you triple-check the country where the car of your choice was manufactured.
- Ensure that your dream EV’s price fits under the “old” rules.
If you don’t want to spend the money now
- Half of the $7500 is available depending on if the EV has a battery made in North America, AND
- The other half will depend on if the battery was made mostly from minerals supplied by free-trade partners (meaning if more than half of the minerals are sourced from China, the vehicle’s battery wouldn’t qualify, and the credit would not be available.)
- You will need an advanced degree in mineralogy to buy an EV.
Stephen Wilmot of the Wall Street Journal reported that EV manufacturers are scrambling to comply with the new rulings. GM and Tesla are apparently closer on the domestic manufacturing part, but Ford might be relying on Indonesia for mineral supplies. Either way, the auto industry must start almost from the bottom to build domestic battery production to meet the increasing demand for EVs and plug-in hybrid EVs. The competition will be stiff, and we will get to watch!
In the meantime, do your best to buy your dream EV in the next two weeks if you don’t want to hassle the new rules!