Electric Vehicles (EVs) that are assembled outside of but leased within the United States may be eligible for clean vehicle tax credits, according to new guidelines published by the U.S. Treasury Department.
This follows a plea in November from South Korean and Japanese officials who sought more “flexibility” from the U.S. for foreign automakers in reference to tax credit eligibility.
In an IRS fact sheet (pdf) published on Dec. 29, several changes were made to the Inflation Reduction Act of 2022 (IRA) for “qualified plug-in electric drive motor vehicles, including adding fuel cell vehicles.”
The removal of “North American final assembly” from section 45W was the notable change, meaning that foreign-made electric vehicles may qualify for tax credits if used for commercial purposes….