Treasury and the IRS released initial guidance on Tuesday, Aug. 16, regarding a new North America final assembly requirement to qualify for the Sec. 30D clean vehicle tax credit.
The Inflation Reduction Act, signed into law by President Joe Biden on Monday, Aug. 15, made broad changes to the clean vehicle tax credit, including a requirement that the car or truck be assembled in North America.
The legislation also extends the clean vehicle tax credit through 2032 and creates a new credit for previously owned clean vehicles. The only change that immediately took effect, however, was the North America final assembly requirement.
The requirement does not apply to clean vehicles purchased before Aug. 16, 2022. See the guidance.