Stricter Electric Vehicle Tax Credit Rules Began April 18

New battery component and critical mineral rules for the federal EV tax credit mean that very few EVs are currently eligible for the full $7,500 tax break.

electric vehicle charging for new tax credit rules
(Image credit: Getty Images)

Eagerly anticipated federal guidance on the EV tax credit was released earlier this year that limits which electric vehicles qualify for the $7,500 tax credit under the Inflation Reduction Act (IRA). The proposed rules set out requirements for critical minerals and battery components that must be met for an EV or “clean vehicle” to qualify for the full $7,500 tax credit. Vehicles that don’t meet all of the requirements could end up being eligible for only half the tax credit ($3,750), or in some cases, no credit at all.

The Treasury Department, in a statement, described the clean vehicle guidance as “an important step that will help consumers save up to $7,500 on a new clean vehicle and hundreds of dollars per year on gas, while creating American manufacturing jobs and strengthening our energy and national security.”  

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Kelley R. Taylor
Senior Tax Editor,

As the senior tax editor at, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.