By ALEXA ST. JOHN – Associated Press | Source: The Gazette
DETROIT (AP) — U.S. consumers looking to get a tax credit on an electric vehicle purchase have fewer models to choose from under new rules that limit the countries where automakers can buy battery parts and minerals — a potential blow to efforts to reduce planet-warming emissions from autos.
The Inflation Reduction Act signed into law in 2022 expanded tax credits ranging from $3,750 to $7,500 for purchases of new and used EVs, an effort by the Biden administration to stoke demand toward its goal that half of all new vehicle sales be electric by 2030. But qualifying for the credits depends on requirements related to their battery makeup and minerals that get tougher each year.
As of Jan. 1, new rules favor U.S. domestic materials and manufacture. The rules largely target battery components from nations “of concern” — mostly China, but also Russia, North Korea and Iran.