The Internal Revenue Service (IRS) announced Friday that it would propose rules that would make it more difficult for a number of new electric vehicles (EVs) to qualify for tax breaks, according to a news release.
Starting April 18, the IRS will enforce a domestic sourcing requirement for minerals and components used in EV batteries, the agency said. Analysts say that a number of new EVs won’t qualify for a clean vehicle tax credit of $7,500 that was implemented under the Inflation Reduction Act that was passed last year.
The act “allows a maximum credit of $7,500 per vehicle, consisting of $3,750 in the case of a vehicle that meets certain requirements relating to critical minerals and $3,750 in the case of a vehicle that meets certain requirements relating to battery components,” the IRS said. “The critical mineral and battery component requirements will apply to vehicles placed in service on or after April 18, 2023, the day after the Notice of Proposed Rulemaking is issued in the Federal Register.”…