IRS to Issue NPRM on IRA Clean Vehicle Critical Mineral and Battery Component Requirements
Eligible applicants: individuals. Application are due: June 18, 2023
Announcement Type: Notice of Proposed Rulemaking
Opportunity: Inflation Reduction Act New Clean Vehicle Credit
Overview and Eligible Uses: The Internal Revenue Service will issue a proposed rule further defining qualification requirements for the new clean vehicle credits available under the Inflation Reduction Act (IRA). This credit 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.
The rule will propose that these requirements can only be met if a certain percentage of critical minerals were (i) extracted or processed in the United States, or in any country with which the United States has a free trade agreement in effect, or (ii) recycled in North America. For battery components, certain percentages of component parts must be manufactured or assembled in North America.
The critical mineral and battery component requirements will apply to vehicles placed in service on or after April 18, 2023, the day after the Notice of Proposed Rulemaking is issued in the Federal Register.
Amount: The New Clean Vehicle Credit it worth up to $7,500 per vehicle
Award Type: Federal income tax credit
Eligible Applicants: Individuals
Key Dates: The Notice of Proposed Rulemaking will be published in the Federal Register on April 18, 2023, and the IRS will accept comments for a 60 day window after the posting.
Key Links:
Unpublished Notice of Proposed Rulemaking (NPRM) in the Federal Register
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