Treasury Releases Guidance to Drive Investment in Critical Minerals & Battery Supply Chains in America
Today, the Department of Treasury (Treasury) and the Internal Revenue Service (IRS) released new guidance to clarify how manufacturers may satisfy the critical mineral and battery component requirements of the clean vehicle tax credit introduced by the Inflation Reduction Act (IRA). Treasury’s new notice of proposed rulemaking marks a critical step towards building our clean energy future while honoring our “Made in America” commitments.
The Biden-Harris Administration remains focused on investing in America, revitalizing American manufacturing and establishing secure supply chains for critical minerals and battery components here at home. Since the enactment of the Inflation Reduction Act, over $45 billion in battery investments across at least 75 facilities have been announced across all segments of the domestic battery supply chain, ranging from the extraction of critical minerals to the manufacturing of battery packs. Treasury’s new guidance ensures that the tax credits introduced by the Inflation Reduction Act will continue to drive unprecedented investment in American manufacturing and drive the creation of tens of thousands of high-paying, high-quality jobs.
The Biden-Harris Administration also remains committed to building the American economy from the bottom up and the middle out, and the new clean vehicle tax credits have been designed to ensure that clean vehicles are accessible to all Americans and targeted at the middle-class and hardworking families. With today’s new guidance, Treasury and IRS have also released an updated set of FAQS to help taxpayers determine whether they are eligible for up to a $7,500 tax credit towards a new clean vehicle. These FAQs provide consumers with information on eligibility requirements, including household income limitations and vehicle price caps, as well as detailed instructions on determining whether vehicle models are eligible under the updated critical minerals and battery component requirements.
After the release of today’s new guidance, manufacturers will provide Treasury and IRS with an updated list of eligible vehicles by April 18, 2023. On that date, FuelEconomy.gov will contain a list of eligible clean vehicles that manufacturers have indicated to the IRS will meet the requirements to claim the new clean vehicle credit. This list will continue to be updated promptly as manufacturers continue to provide more information on vehicle eligibility.
Today’s announcement ensures that the clean vehicle credit provided by the Inflation Reduction Act will lower costs for consumers, revitalize our industrial base, and spur manufacturing here at home. We encourage you to learn more about all of the ways that the Inflation Reduction Act’s clean energy tax incentives can help to lower your household’s energy and transportation costs in 2023 and beyond.