United States: new tax rules for electric vehicles

On May 3, the Biden administration formalized a decisive regulation for the future of electric vehicles in the United States, introducing detailed rules for the application ofa substantial tax credit aimed at stimulating the adoption of these technologies. Under the provisions of the Inflation Reduction Act, this credit of up to $7,500 per vehicle is designed to encourage manufacturers and consumers to switch to greener options. However, to qualify, vehicles must meet strict criteria concerning the sourcing and processing of battery components and critical minerals, which must be sourced in the USA or in partner countries via free trade agreements.