The Alliance for Automotive Innovation is pleading with the US Treasury Department to rethink its electric vehicle tax credit rules to make the transition to electric vehicles easier for everyone, reports Automotive News.
The Treasury's latest rules, designed to reroute EV battery production away from certain countries, could mean consumers will lose out on the lucrative $7,500 EV incentive because a vehicle contains battery materials from countries such as China, Russia, Iran, or North Korea.
This extends to companies - which may be subsidiaries of US companies - owned, operated, or controlled by the aforementioned nations. Since January 1, new electric vehicles have been disqualified from receiving the tax credit if any of the components in the battery were made or produced by a "foreign entity of concern."
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