To qualify for the EV tax credit’s critical minerals requirements, vehicles must meet annually increasing thresholds for the percentage of critical minerals extracted, processed, or recycled in specified regions. Here’s the breakdown:
Critical Minerals Requirements
- Purpose: Provides up to $3,750 of the total $7,500 federal tax credit.
- Thresholds:
- 2023: 40% of critical mineral value must be extracted/processed in the U.S. or a free-trade-agreement country, or recycled in North America.
- 2024: 50%.
- 2025: 60%.
- 2026: 70%.
- 2027 onward: 80%.
Additional Details
- Eligibility: Combines with a separate $3,750 battery component requirement for the full $7,500 credit.
- Income Limits: Buyers must meet modified AGI thresholds (e.g., ≤$150,000 for single filers).
- Battery Size: Minimum 7 kWh capacity required.
Commercial and leased vehicles may qualify for full credits without meeting these requirements under different IRS provisions.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-critical-minerals-requirements-for-ev-tax-credits/
