The U.S. Treasury Department on Wednesday said it will release guidance next week on sourcing requirements for electric vehicle battery tax subsidies under President Joe Biden’s climate change law, the first in a string of highly anticipated rules to determine how broadly the credits can be used.
The auto, battery and clean energy industries have been awaiting guidance on complex questions governing eligibility for hundreds of billions of dollars of incentives in the Inflation Reduction Act, signed into law last year.
After outlining battery sourcing rules, officials said, Treasury will follow in the next couple of months with guidance around bonus tax credits for clean energy projects sited in fossil fuel-dependent communities, those built with domestically produced equipment, and those paying workers prevailing wages and employing apprentices.
