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Reminder: Proposed Regulations Related to the New Clean Vehicle Critical Mineral and Battery Components Go into Effect April 18

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Posted by Admin Posted on June 29 2023

Reminder: Proposed Regulations Related to the New Clean Vehicle Critical Mineral and Battery Components Go into Effect April 18

The Internal Revenue Service published proposed regulations in the Federal Register related to certain requirements that must be met for critical mineral and battery components for the new clean vehicle credit.

The critical mineral and battery component requirements apply to vehicles placed in service on or after April 18, 2023, the day after the Notice of Proposed Rulemaking is published in the Federal Register.

New clean vehicles placed in service on or after April 18, 2023, are subject to the critical mineral and battery component requirements even if the vehicle was ordered or purchased before April 18, 2023.

The Inflation Reduction Act (IRA) allows a maximum credit of $7,500 per vehicle, consisting of $3,750 in the case of a vehicle that meets certain requirements relating to critical minerals and $3,750 in the case of a vehicle that meets certain requirements relating to battery components.

To check if a specific make and model meets the critical mineral and battery components, visit Fuel Economy.gov.

If you have any questions regarding Essential Business Accounting, Domestic Taxation, International Taxation, IRS Representation, U.S. Tax Implications of Real Estate Transactions or Financial Statements, please give us a call at +1-305-274-5811.

Source : IRS      

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