EV Tax Credit Proposal
The Senate proposed to extend the current $7,500 tax credit for consumers buying new electric vehicles but would add requirements for automakers. The automakers would be subject to annual increases in sourcing requirements for critical minerals and battery component to build the EVs.
By 2024, the proposal would call for 50 percent of the critical minerals used in EV batteries to be extracted or processed in the U.S. or a country where the U.S. has a free trade agreement in effect or from materials that were recycled in North America. Also, in 2024 and 2025, 60 percent of the battery components must be made or assembled in North America.