U.S. Clean Vehicle Credit: Proposed Regulations on the Critical Minerals and Battery Component Requirements
Author: Isaac J. Wheeler, Samuel E. Saunders & Ellen Y. Kim.
Source: Volume 40, Number 03, Spring 2023 , pp.23-28(6)
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Abstract:
On March 31, 2023, the Internal Revenue Service (IRS) released proposed regulations on the federal income tax credit relating to new clean vehicles (the “30D credit”), which took effect on April 17, 2023. The proposed regulations provide much needed guidance on many of the requirements that must be met for the credit, such as the critical minerals and battery component requirements, although certain key points still remain to be resolved, including what “foreign entities of concern” means.Keywords: 30D credit, clean vehicle credit, Inflation Reduction Act, tax credit, critical minerals requirements, battery component requirements
Affiliations:
1: Sullivan & Cromwell LLP.