On December 1, Biden** launched a consultation version of the new guidelines, clarifying which electric vehicles are eligible for tax credits, excluding those that contain batteries or minerals originating in China or other countries with poor relations with the United States.
These restrictions specify which clean energy vehicles are eligible for up to 7Subsidy of 5 thousand dollars.
Under current regulations, only about 20 of the more than 100 electric vehicles in the U.S. market are eligible for the tax credit. This number is likely to decrease further when the new regulations come into force.
Starting in 2024, cars equipped with a clean energy battery will immediately lose its eligibility for U.S.** tax benefits for its owner if it passes through an assembly line owned by any "foreign entity of concern."
The new rules target companies registered or headquartered in countries such as China, Russia, North Korea and Iran, as well as companies controlled by 25% or more of their equity or board seats.
From 2025 onwards, electric vehicles that use critical minerals such as lithium, nickel and cobalt mined or processed by any "foreign entity of concern" in their manufacturing process will also be completely ineligible for subsidies.
The new rules will have a public comment period of several weeks to hear feedback from U.S. auto industry leaders, and the new rules may be revised as industry suggestions are received. Battery