WASHINGTON, D.C. – Today the U.S. Treasury Department and the IRS released the following information on certain clean vehicle provisions of the Inflation Reduction Act. The information provides greater clarity to consumers and businesses that, beginning January 1, 2023, will be able to access tax benefits from the law’s clean vehicle provisions.
In addition to the above pieces of guidance, which taxpayers may rely on beginning January 1, Treasury also released a white paper on the anticipated direction of Treasury and the IRS’s upcoming proposed guidance on the critical minerals and battery components requirements and the process for determining whether vehicles qualify under these requirements. While this preliminary information is not proposed guidance, it will help manufacturers prepare to be able to identify vehicles eligible for the tax credit when the new requirements go into effect after Treasury and the IRS issue a Notice of Proposed Rulemaking in March. This paper reflects months of working through significant complexities and consulting with technical experts across the federal government on battery components and critical minerals.
Since the Inflation Reduction act was signed into law in August, Treasury has worked expeditiously to write the rules that will make real the promise of this legislation. Within days of the law’s enactment, Treasury issued guidance on the electric vehicle tax credit and worked closely with DOT and DOE so consumers could easily find a list of eligible vehicles online.
In the fall, Treasury held a series of stakeholder discussions with Secretary Yellen and Deputy Secretary Adeyemo to solicit input from key groups representing millions of workers, thousands of companies, and trillions of dollars in investment assets, as well as climate and environmental justice advocates, community-based organizations, and other key actors that are critical to the success of the Inflation Reduction Act. Treasury also hosted three formal consultations with Tribal governments and Alaska Native Corporations to hear first-hand from Tribal leaders about provisions in the law that directly affect Tribal nations.
In addition, Treasury has solicited and is reviewing thousands of public comments from trade associations, carmakers, labor groups, state and municipal leaders, consumers, foreign governments, utility companies, climate advocacy organizations, think tanks, and more.
Last month, Treasury published initial guidance on the prevailing wage and apprenticeship standards. Earlier this month, Treasury and the IRS set out key procedures for manufacturers and sellers of clean vehicles that are required in order for vehicles to be eligible for tax incentives. And last week, Treasury and the IRS issued guidance on the new Sustainable Aviation Fuel (SAF) credit and FAQs on energy efficient home improvement projects and residential clean energy property credits.
For more information on Treasury’s implementation work around the Inflation Reduction Act, see below.
November 4, 2022: READOUT: Stakeholder Roundtable on Clean Vehicles and the Inflation Reduction Act
November 29, 2022: Treasury Announces Guidance on Inflation Reduction Act’s Strong Labor Protections
December 12, 2022: Treasury and IRS set out procedures for manufacturers, sellers of clean vehicles
December 19, 2022: Treasury, IRS issue guidance on new Sustainable Aviation Fuel Credit
WASHINGTON—The Office of the Comptroller of the Currency (OCC) today released enforcement actions taken against…
WASHINGTON – Today, as part of the 30th anniversary celebration of the Community Development Financial…
Treasury imposes sanctions on dozens of Russian banks, securities registrars, and finance officials; OFAC issues…
WASHINGTON—Acting Comptroller Michael J. Hsu today testified on the state of the federal banking system…
As Prepared for Delivery Thank you very much for the opportunity to be here today, and…
As Prepared for Delivery Good afternoon. I’d like to start by thanking our panelists today for…