Battery mineral content requirement delayed to March.

[pjy]

Looks like battery mineral content for the full tax credit is postponed until March.

https://www.nasdaq.com/articles/u.s.-treasury-will-delay-ev-battery-sourcing-guidance-until-march

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[jallen]

This is good news for me as I’m in production right now on a Pro.

I read the article, but I’m still not understanding. Are they delaying just 1 of the 2 battery component/sourcing requirements? Mineral sourcing vs battery components?
Full $7500 available on lightning until March if you meet the MSRP cap??
Do we know where Lightning stands on battery components?

 

[Maxx]

Ford 200K limit is over end of Q4. 23 Q1 it drops. Are we getting all of the old rule meaning less than $7500? Or best of both worlds in January? meaning no 200K limit and no battery limit?

 

[jallen]

https://www.autonews.com/manufacturing/treasurys-ev-tax-credit-guidance-delayed-until-march
This article makes it seem like both battery sourcing/component issues are delayed.

so yes, best of both worlds. You get the entire new bill, just not the percentages. so No more 200k cutoff, full $7500 as long as you meet the MSRP and household income limits.

 

[Maxx]

https://www.autonews.com/manufacturing/treasurys-ev-tax-credit-guidance-delayed-until-march
This article makes it seem like both battery sourcing/component issues are delayed.

so yes, best of both worlds. You get the entire new bill, just not the percentages. so No more 200k cutoff, full $7500 as long as you meet the MSRP and household income limits.

I was just getting used to the stress fest. Now I am not sure what to do with the rest of the year.

Do you still have to have enough tax liability to take advantage of $7500 in 23? or low income folks are now in the game?

 

[jallen]

If we take delivery before March sometime, this gives us almost a year to make sure we do have the liability, correct?

 

[Pioneer74]

That doesn't say the requirement is postponed. It just says the guidance is. That shouldn't effect the taxes you fund for the calendar year.

Congress would have to act to change the rules.

 

[jallen]

That doesn't say the requirement is postponed. It just says the guidance is. That shouldn't effect the taxes you fund for the calendar year.

Congress would have to act to change the rules.

It actually literally does say that the new battery rules don’t take effect until the treasury gives guidance in March….

 

[Maxx]

That doesn't say the requirement is postponed. It just says the guidance is. That shouldn't effect the taxes you fund for the calendar year.

Congress would have to act to change the rules.

The person that wrote the artcle took it differently:

" The announcement means some electric vehicles that will not meet the new requirements may have a brief window of eligibility in 2023 before the battery rules take effect. "

but you may be correct.

 

[Maxx]

It actually literally does say that the new battery rules don’t take effect until the treasury gives guidance in March….

"may have a brief window of eligibility"

 

[jallen]

We really don’t know until we know I guess…but there can’t be a requirement before there is even guidance…and the guidance isn’t coming until March.

 

[EdwinT]

It actually literally does say that the new battery rules don’t take effect until the treasury gives guidance in March….

i also take it this way. if no guidance is given before you purchase....you are not held to the requirement. we shall see though. hopefully i take delivery this year to avoid that.

does anybody have the source of this info? from the treasury?

 

[jallen]

i also take it this way. if no guidance is given before you purchase....you are not held to the requirement. we shall see though. hopefully i take delivery this year to avoid that.

does anybody have the source of this info? from the treasury?

I believe this is it….
https://home.treasury.gov/news/press-releases/jy1173

 

[EdwinT]

https://www.autonews.com/manufacturing/treasurys-ev-tax-credit-guidance-delayed-until-march
This article makes it seem like both battery sourcing/component issues are delayed.

so yes, best of both worlds. You get the entire new bill, just not the percentages. so No more 200k cutoff, full $7500 as long as you meet the MSRP and household income limits.

can you DM me a copy of the article please?

 

[jallen]

I believe the LAST SENTENCE is what we are looking for. Direct from treasury press release….

Before year’s end, Treasury will also release information on the anticipated direction of the critical mineral and battery component requirements that vehicles must meet to qualify for tax incentives in the Inflation Reduction Act. The information will help manufacturers prepare to be able to identify vehicles eligible for the tax credit when the new requirements go into effect.

Treasury will issue a notice of proposed rulemaking (NPRM) in March with proposed guidance on the critical minerals and battery components requirements. By statute, the critical mineral and battery component requirements take effect only after Treasury issues that proposed rule.

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