WASHINGTON — When the Biden administration's proposed rule for which vehicles qualify for itsgoes into effect on April 18, the number of eligible cars will actually shrink.
Senior Biden administration officials were candid that the new requirements will make it more difficult in the "short-term" for consumers to take advantage of the new tax credits. Boylan added that time is of the essence, as there's significant momentum on electric vehicles, which are still too expensive for many car buyers. Consumers who are interested in buying an EV but need financial assistance from tax credits may not be willing to wait years to buy the car they want, he added.
There are two major requirements that automakers need to meet if they want their EVs to be eligible for the $7,500 tax credit: a critical mineral requirement and a battery component requirement — which are each worth $3,750.