EV Tax Credit Restrictions: Minerals from Germany and France Tied to Ukraine Aid.
This bill links the federal tax credit for new electric vehicles (EVs) to the level of aid provided to Ukraine by Germany and France. If critical minerals in an EV battery originate from these countries, the tax credit may be denied unless their aid commitment (as a percentage of GDP) matches or exceeds that of the US. This means consumers might face higher prices for certain EV models if they lose eligibility for the federal discount.
Key points
Tax Credit Changes: The EV tax credit will be denied if critical minerals in the battery are sourced or processed in Germany or France, unless those nations meet specific aid requirements for Ukraine.
Consumer Impact: Buyers of new EVs may lose the federal tax credit, potentially increasing the purchase price, if their vehicle contains critical minerals from the non-compliant countries.
Defense Spending Requirement: The exclusion remains even after the war ends until Germany or France spend at least 2% of their GDP on defense for two consecutive years.
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