August 12, 2022 – Automakers are scrambling to sell their electric vehicles before Friday to get in front of new, more stringent requirements tax credits for the cars that will kick in when President Joe Biden signs the clean energy and healthcare bill set for a vote in the House at the end of the week.
The Inflation Reduction Act, expected to clear the House Friday, includes additional restrictions on eligibility for the $7,500 electric vehicle tax credit, including new sourcing requirements for battery materials, as well as an assembly rule requiring electric vehicles to go through the final stages of manufacturing in North America.
The measures are meant to incentivize more domestic electric vehicle manufacturing. But in the short term, industry officials say, the new requirements could make it difficult for most to qualify for the tax credit.
