Treasury Department Releases Final Rules for Electric Vehicle Tax Credit in Inflation Reduction Act

Final Rules Represent Win for Consumers and American Auto Industry
Contact

Larisa Manescu, larisa.manescu@sierraclub.org

Washington, DC – Today, the Treasury Department released final rules ensuring more Americans have access to clean vehicles by addressing mineral and manufacturing requirements for the electric vehicle incentives in the Inflation Reduction Act. 

The IRA provides a tax credit of up to $7,500 for new electric vehicles that meet certain production requirements. The climate law also provides a tax credit of up to $4,000 for used electric vehicles, which is meaningful as the majority of consumers buy used vehicles. 

The Biden administration has ensured these consumer savings can be applied at the point-of-sale, and so far in 2024, more than 100,000 point-of-sale credits have been issued, representing over $700 million in upfront savings for consumers.

In response to the final rule, Sierra Club Director of the Clean Transportation for All campaign Katherine García released the following statement: 

“The Treasury rules finalized today will ensure more Americans have access to new and used clean vehicles through point-of-sale rebates while bolstering the U.S. auto industry. Gas-powered cars make up a major part of climate and air pollution that harms millions of Americans every day, making our nation’s transition to electric vehicles more important and urgent than ever.

“As we electrify vehicles, we must simultaneously ensure manufacturers are developing sustainable supply chains. The Treasury’s rules are crucial for helping us spur EV adoption and promote the long-term growth of American electric vehicle manufacturing.

“President Biden has stood shoulder to shoulder with American auto workers, and today he’s showing us again that he’s there for the domestic auto industry.” 

About the Sierra Club

The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.