Today, the Zero Emission Transportation Association (ZETA) welcomed the announcement of a proposed rulemaking implementing the Treasury Department’s guidance for the Clean Vehicle Tax Credit created through President Biden’s Inflation Reduction Act (IRA). The proposal outlines the requirements automakers must meet in order for their vehicles to qualify for the $7,500 tax credit under Section 30D of the United States tax code. This credit is designed to incentivize the sale of new electric vehicles (EVs) and support the development of a domestic EV supply chain. The proposal provides important certainty to automakers regarding sourcing critical minerals and battery components used in EVs, as outlined in the IRA.
Today’s 30D proposed rulemaking clarifies how qualified manufacturers will certify battery components and critical minerals to meet vehicle eligibility requirements. The publication also addresses the criteria that Treasury will use to determine free trade agreement countries but did not identify foreign entities of concern. Also included is critical information for taxpayers seeking to take advantage of the credit, including applicability to various circumstances.
Beginning April 18, 2023, vehicles placed in service will be subject to the critical mineral and battery component requirements laid out in the proposed rule. On April 18th, FuelEconomy.gov will be updated to contain a list of eligible clean vehicles that meet the requirements to claim the new clean vehicle credit, including the amount of the credit.
In response to today’s announcement, Albert Gore, Executive Director of ZETA, released the following statement:
“The Treasury Department’s clean vehicle tax credit guidance provides a clear roadmap for automakers, battery manufacturers, and critical mineral suppliers to work together in the shared mission of expanding access to electric vehicles to all Americans, creating millions of jobs , and securing our supply chain. These credits will provide the economic and policy certainty needed to deploy the hundreds of billions of dollars already committed to transportation electrification. By providing companies with guidance on how to qualify for Clean Vehicle Tax Credits, the Biden-Harris Administration is reinforcing the resolve of the companies leading the transition to zero-emission transportation and creating the opportunity for others to join the movement. ZETA looks forward to continuing to work with our members and allies to scale the industry and meet 100% EV sales in the United States.”
The Zero Emission Transportation Association (ZETA) is a federal coalition focused on advocating for 100% EV sales by 2030. ZETA is committed to enacting policies that drive EV adoption, create hundreds of thousands of jobs, secure American global EV manufacturing leadership, drastically improve public health, and significantly reduce carbon pollution.