Image: Hugo Herrera / The Verge
The Biden administration is giving automakers a little leeway around some of the strict rules regarding eligibility for the government’s $7,500 tax credit.
The final guidance, which was released today, gives car companies a two-year exemption from provisions in the Inflation Reduction Act (IRA) intended to disqualify EVs with battery minerals from countries like China, Russia, Iran, and North Korea — so-called “foreign entities of concern” (FEOC).
The exemption only applies to “impracticable-to-trace” battery minerals, like graphite, which frequently comes from China. Those materials are exempt from the rules until 2027, the Treasury Department said today.
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