New US rules aimed at curbing China could limit tax credits for EVs

The Biden administration proposed new rules on Friday that could make it harder for electric vehicles to qualify for a full USD 7,500 federal tax credit, complicating efforts to meet President Joe Biden’s goal that half of new passenger vehicles sold in the US run on electricity by 2030.

Plans outlined by the Treasury and Energy departments would limit EV buyers from claiming the full tax credit if they purchase cars containing battery materials from China and other countries that are considered hostile to the United States.