"The New Clean Vehicle Credit of the Inflation Reduction Act amends Section 30D(a) of the United States Internal Revenue Code for the purposes of purchasing clean, new vehicles. The Notice of Proposed Rulemaking (NRPM) builds out the domestic EV supply chain and expands access to qualifying, plug-in EVs. New vehicles will be eligible for a $7,500 tax credit delivered at the point of sale. The credit is composed of two halves: qualifying vehicles will receive $3,750 for meeting each of the critical mineral and battery component sourcing requirements. This summary includes a breakdown of key definitions upfront and those embedded throughout the NPRM along with more specificity on the critical mineral and battery component requirements. While the public awaits further clarification in some key areas, most notably regarding foreign entities of concern, this proposal provides other areas of certainty that will be necessary to meet the IRA’s stringent sourcing requirements." [Full Text Here]
