On Thursday, December 29th The U.S. Treasury announced that starting January 1st, vehicles leased by consumers can qualify for up to $7,500 in commercial clean vehicle tax credits. That decision is a win for South Korea, the European Union, Japan and others because the new Treasury guidance means that EVs assembled outside North America are eligible.
On Dec. 19, Treasury said it would delay releasing proposed guidance on required sourcing of EV batteries until March. That may mean some EVs that do not meet the new requirements may have a brief window of eligibility in 2023 before battery rules take effect. At present, half the credit is contingent on at least 40% of the value of the critical minerals in the battery having been extracted or processed in the United States or a country with a U.S. free-trade agreement, or recycled in North America, a percentage requirement that rises annually.