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Rule delay makes big EV tax credit possible early next year

WASHINGTON, D.C. (AP)— People who want to buy an electric vehicle could get a bigger-than-expected tax credit come January 1 because of a delay by the Treasury Department in drawing up rules for the tax breaks.

The department says it won’t finish the rules that govern where battery minerals and parts have to be sourced until sometime in March. As a result, it appears that buyers of EVs assembled in North America with batteries made in the U.S., Canada, or Mexico will be eligible for a full $7,500 tax credit under the Inflation Reduction Act.

The act calls for the batteries’ minerals and parts to also come from North America in order to get the full tax break, but that provision has been temporarily put on hold.

The Associated Press is one of the largest and most trusted sources of independent newsgathering, supplying a steady stream of news to its members, international subscribers and commercial customers. AP is neither privately owned nor government-funded; instead, it's a not-for-profit news cooperative owned by its American newspaper and broadcast members.