Today, the U.S. Department of the Treasury and Internal Revenue Service (IRS) announced final rules on clean vehicle provisions, as part of the Inflation Reduction Act (IRA), aimed at reducing consumer costs, boosting U.S. manufacturing, and enhancing energy security.
Janet L. Yellen, Secretary of the Treasury, highlighted the impact of the Inflation Reduction Act, stating, “President Biden’s Inflation Reduction Act has unleashed an investment and manufacturing boom in the United States.” She emphasized the benefits of clean vehicle credits, saving consumers money and creating jobs while enhancing energy security.
John Podesta, Senior Advisor to the President for International Climate Policy, praised the clarity and certainty provided by the final rules, stating, “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.”
Ali Zaidi, Assistant to the President and National Climate Advisor, credited President Biden for the surge in EV manufacturing investment, stating, “Under President Biden, the U.S. went from laggard to leading the rest of the world in EV manufacturing investment.”
The final rules issued by the Treasury Department and IRS aim to strengthen and secure supply chains, provide clarity for manufacturers and taxpayers, and address critical minerals and battery components requirements. These rules also include provisions for transferring clean vehicle credits at the point of sale, offering upfront savings for consumers.
The rules also outline robust program integrity measures, including upfront review of compliance with critical mineral and battery component requirements, as well as the Foreign Entity of Concern (FEOC) restrictions. Manufacturers will be required to conduct detailed supply chain tracing to determine qualifying critical mineral content.
The Biden-Harris Administration’s commitment to building secure and resilient supply chains for EVs and EV batteries was reiterated, with plans to convene domestic critical minerals producers, battery manufacturers, and automakers to accelerate growth in the sector in the United States.
These final rules mark a significant step towards lowering consumer costs, driving U.S. manufacturing in clean vehicles and batteries, and enhancing energy security in the country.
