US Reveals Stricter , EV Tax Credit Rules.<br />Reuters reports that the new electric <br />vehicle tax rules were announced by the <br />U.S. Treasury Department on March 31.<br />They will result in reduced or eliminated <br />tax credits on some electric vehicles.<br />The new rules, which are intended to wean America off of depending on China's battery supply chains, are set to take effect on April 18.<br />A revised list of models that qualify for tax credits will also be published at that time.<br />Reuters reports that Tesla said a <br />$7,500 tax credit for its Model 3 rear-wheel drive will be reduced as a result.<br />New conditions were imposed on EV credits within the Inflation Reduction Act that President Biden signed in August.<br />Such requirements include North American assembly, caps on price and buyer income eligibility, and now, batteries and critical minerals sourcing.<br />John Bozzella, Alliance for Automotive Innovation CEO, issued a statement.<br />Some EVs will certainly qualify for <br />a partial credit. Given the constraints of the legislation, Treasury's done as well as it could to produce rules that meet the statute <br />and reflect the current market, John Bozzella, Alliance for <br />Automotive Innovation CEO, via statement.<br />President Joe Biden has a goal of <br />making 50% of new vehicle sales in the <br />U.S. EVs or plug-in hybrids by 2030
