Treasury Issues EV Tax Credit Sourcing Rules

On Friday, U.S. Department of the Treasury and the Internal Revenue Service (IRS) released proposed guidance on the new clean vehicle provisions of the Inflation Reduction Act which will significantly change electric vehicle (EV) tax credits that are available under Section 30D of the Internal Revenue Code. In particular, the IRS guidance will put in place new critical mineral and battery component content requirements that EVs must meet to qualify for Section 30D tax credits.