New rules proposed by the Department of Energy (DOE) may mean reduced or even no federal tax credit for electric vehicles made in North America, if their batteries contain parts from places like China.
Broadly speaking, the federal EV tax credit is meant to make sure US automakers are sourcing battery components and materials from companies located in US or in US free-trade countries. In order to achieve these goals, DOE proposed new rules on December 1 that said EVs with battery components coming from a company or group designated a foreign entity of concern (FEOC) would be ineligible for the full tax credit.
A company that had at least 25% ownership by a partner “owned by, controlled by, or subject to the jurisdiction or direction of a government” such as China, Russia, North Korea, or Iran is considered an FEOC.
Tax credits for Tesla Model 3 and other EVs slashed starting next year
- by: Pras Subramanian
- 12-06-2023
- Source:
Yahoo Finance
- 12/06/2023
black and silver car on parking lot by Michael Fousert is licensed under Unsplash unsplash.com
black and silver car on parking lot by Michael Fousert is licensed under Unsplash unsplash.com
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