On March 31, 2023, the Treasury Department and the IRS released a Notice of Proposed Rulemaking on the new clean vehicle provisions of the Inflation Reduction Act. The Notice will be published in the Federal Register on April 17, 2023. Comments and requests for a public hearing must be submitted by June 16, 2023.
Section 30D of the Internal Revenue Code, as amended by the Inflation Reduction Act, allows a credit of up to $7,500 on the purchase of qualified electric vehicles. To be eligible for the credit, the vehicle must be a new clean vehicle, manufactured in North American, and powered by a battery that complies with critical mineral and component sourcing specifications. The Notice provides guidance clarifying the new credit eligibility criteria.
We are currently reviewing the proposed guidance. Check back early next week for our assessment.
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