Biden's EV Tax Credit: Automakers' Mineral Flex

The Biden administration is making changes to the rules that determine which automakers are-

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eligible for the government's $7,500 tax credit for electric vehicles (EVs). Car companies receive a two-year exemption from certain provisions in the Inflation-

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Reduction Act (IRA) that target EVs with battery minerals from specific countries classified as-

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"foreign entities of concern" (FEOC), such as China, Russia, Iran, and North Korea.

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Battery minerals such as graphite that are difficult to trace will be exempt from restrictions until 2027, while more commonly-

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The auto industry requested a more lenient approach to the tax credit's rules regarding trace minerals,

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stating that it was extremely difficult to comply with the previous timeline.

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Despite the adjustments, the new rules may have an impact on the number of EV models that qualify for the full tax credit.

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The eligibility criteria for buyers include income limits, vehicles must be manufactured in North America, and there are also price caps on the vehicles.

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The guidance also provides rules for dealerships that offer the credit as an instant rebate, which is a provision that customers often appreciate.

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Leasing continues to be a popular choice for EV shoppers, as leased vehicles are usually eligible for the complete tax credit.

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The Biden administration recognizes the importance of EV adoption in addressing climate change and is actively striving to broaden the EV supply chain beyond China.

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In light of cooling demand and uncertainty, automakers in North America are proceeding with caution despite their plans for new factories and mines.

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Tesla to charge Model Y owners for extra range unlock

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