© Reuters. FILE PHOTO: An electric vehicle is seen charging in Manhattan, New York, U.S., December 7, 2021. REUTERS/Andrew Kelly
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WASHINGTON (Reuters) – The U.S. Treasury Department said Monday it will issue proposed guidance for critical minerals and battery components requirements in March – a key component of the $7,500 electric vehicle tax credit overhauled by Congress.
That decision means electric vehicles that are not in compliance with battery sourcing rules could be eligible for $7,500 tax credits sometime in March. The Treasury also said it will by Dec. 31 “release information on the anticipated direction of the critical mineral and battery component requirements that vehicles must meet to qualify for tax incentives.”
The department noted that under the law “the critical mineral and battery component requirements take effect only after Treasury issues that proposed rule.” General Motors Co (NYSE:) and Tesla (NASDAQ:) Inc vehicles again become eligible for EV tax credits on Jan. 1 after Congress in August lifted the per-manufacturer cap on EV tax incentives.