The Inflation Reduction Act was a significant bill signed by the Biden Administration, which became effective on January 1st. This bill helps combat economic challenges, and climate change, and specifically supports the pathway to introduce more EVs into the market.

Recently, challenges have arisen regarding the EV tax credit plan and its rules. Questions have arisen about the mineral and battery component requirements stated in the Inflation Reduction Act. Furthermore, the sales of electric vehicles have continued to increase. Because of this, the Department of the Treasury announced that decisions around some aspects of the EV tax credits will be delayed until March.

This complicates the qualifications for tax credits with specific EV models. However, this will eventually lead to more vehicles qualifying once this new Act is updated. The IRS has an updated list of qualifying vehicles which will frequently be updated.

Be sure to watch for more updates as they unfold throughout the upcoming months.