US Treasury Department, IRS Unveil New Rules to Promote Clean Vehicles, Strengthen Supply Chains

2023-04-02 03:19:40

(MENAFN) The US Treasury Department and Internal Revenue Service (IRS) have announced new rules on clean vehicles aimed at lowering costs for American consumers and strengthening supply chains. Treasury Secretary Janet Yellen stated that the new rules will help consumers save up to USD7,500 on new clean vehicles and hundreds of dollars per year on gasoline. In addition, they will create American manufacturing jobs and strengthen the energy and national security of the US.

The Treasury noted that at least USD45 billion in private-sector investment has been announced across the clean vehicle and battery supply chain in the US since the Inflation Reduction Act was enacted. The Act, signed into law by President Joe Biden in August 2022, aims to curb high inflation by reducing the national deficit and investing in domestic energy output by promoting clean energy.

According to the statement, clean vehicles must meet sourcing requirements for both critical minerals and battery components contained in the vehicle to be eligible for a USD7,500 credit. Vehicles that meet one of the two requirements are eligible for a USD3,750 credit.

The push towards clean energy and electric vehicles has been gaining momentum in recent years, with many companies around the world racing to develop more efficient electric vehicles, while their governments offer subsidies. The new rules introduced by the US Treasury Department and the IRS are expected to further accelerate this trend and help support the growth of the clean energy and electric vehicle industries in the US.

Recently, American carmaker Ford announced an agreement with two companies in Asia to advance nickel production, helping to make manufacturing electric vehicle batteries more affordable. Such initiatives are expected to play a crucial role in driving down the cost of electric vehicles and making them more accessible to consumers. Overall, the new rules announced by the US Treasury Department and the IRS are expected to have a positive impact on the US economy and the environment, as the country continues to transition towards a cleaner and more sustainable energy future.

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