Biden Poised to Finalize New Electric Vehicle Tax Credit Rules

The US Treasury Department will unveil the final version of new rules limiting a popular tax credit for electric car buyers as soon as Friday as the Biden administration races to complete regulations ahead of the November election, according to people familiar with the matter.

The rules, proposed by the administration in December, put new limits on a credit worth up to $7,500 per vehicle, a powerful incentive for drivers interested in electric cars but put off by their high prices. The requirements don’t allow tax breaks for vehicles containing battery components or critical minerals from “foreign entities of concern” — government-speak for businesses controlled by US geopolitical foes such as China.