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The Biden administration on Friday released guidance that it hopes will alter the landscape for electric vehicles by pivoting the nation from gas-guzzling cars and bolster its aggressive climate goals.
But major questions remain around exactly how the new tax regime will keep out China-linked cars, components and minerals; whether and how the federal government can enforce the law; whether industry can scale up fast enough; and how many EVs will qualify for the $7,500-per-vehicle credit under last year’s landmark Inflation Reduction Act.
The Treasury Department proposed rule laid out details for how the Inflation Reduction Act should be implemented. The guidance hews closely to a Treasury white paper released in December that established a multipronged requirement for electric vehicles to obtain the full $7,500 federal tax credit (Greenwire, March 31).