Final EV Tax Credit Rule Draws Praise From Automakers, Concerns Over China Reliance

The rule allows automakers to claim a consumer tax credit even if they use some Chinese minerals.

Sen. Joe Manchin (D-W. Va.) on Capitol Hill in Washington on May 4, 2022. Nicholas Kamm/AFP via Getty Images

The Treasury Department on May 3 finalized rules for consumer electric vehicle (EV) tax credits, which allows more automakers that use Chinese minerals to claim the credit.

The tax credit—up to $7,500 for a new and $4,000 for a used EV—was passed under the 2022 Inflation Reduction Act, and is one of the tools of the Biden administration’s climate initiative to achieve half of new car sales by 2030 being EVs.