WASHINGTON — Today the U.S. Department of the Treasury and Internal Revenue Service released final rules on the clean vehicle provisions of the Inflation Reduction Act that are lowering costs for consumers, spurring a boom in U.S. manufacturing, and strengthening energy security by building resilient supply chains with allies and partners. Since President Biden was elected, $173 billion in private-sector investment has been announced across the U.S. clean vehicle and battery supply chain.
“Today’s actions from Treasury and DOE provide clarity and certainty to an EV marketplace that’s rapidly growing,” said“The direction we’re headed is clear—toward a future where many more Americans drive an EV or a plug-in hybrid and where those vehicles are affordable and made here in America.” The final rules being issued today strengthen and secure supply chains and provide certainty for manufacturers and taxpayers. After careful consideration of the extensive public feedback received in response to the proposed rules, the Treasury Department and the IRS are providing definitions and rules regarding taxpayer and vehicle eligibility for the credit for new clean vehicles and the previously-owned clean vehicle credit.
These rules provide for robust program integrity measures, including upfront review of compliance with both critical mineral and battery component requirements and the FEOC restrictions starting this summer. The IRS, with analytical assistance from DOE, will conduct upfront review of documentation and certifications addressing materials sourcing requirements to ensure that qualified manufacturers are accurately representing their battery contents.