A very interesting part I wasn’t aware of was the “Battery component foreign
entities of concern rule” that starts in 1/1/24. Foreign entity of concern includes China. Therefore if a single component in the battery pack is from China, it will not qualify(regardless of % of other components). There is a similar restriction for minerals starting 1/1/25, not a single mineral can be from a “foreign entity of concern”…aka China.
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China always used NAFTA as a backdoor into our market to avoid tariffs. What is stopping China from mining a mineral, having it processed in Australia on its way to US? The legislation portion on mineral minimums says “mined or processed”, it doesn’t say “mined and processed”.
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Interesting, i thought they were exploiting the Favored Nation status we granted in the 90s not the NAFTA
I think it’s Most Favored Nation lol, Australia and China are not in the best of terms now either.
Most favored by a certain contingent of elites, perhaps.
That one is much trickier, most of it is processed in China for all the reasons (labor, pollution, facilities)
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Considering a Pacifica PHEV Limited order for a pal, should be plenty of time to deliver before 12/31 for full rebate, but what is the fallback? It is assembled in Canada, so this means it gets reduced, or no rebate after 12/31?
Canada is in North America, so it satisfies the final assembly hurdle. What it gets in 2023 is all based on the battery pack and unknown currently, but being made in Canada is fine.
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So this pretty much means like most units, we await secretary guidance on battery content…
Yah. Right now it’s a crap shoot for everything.
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“The goal is simple enough: Get more drivers into ”clean” vehicles by giving EV buyers a tax break.”
This is where that articles goes off the rails.
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C’mon Man! No Malarkey! 
Anyhow: This still doesn’t address the issue of the patchwork grid that would fall flat on it’s face even just quadrupling BEV market penetration.
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Last I looked at the Pachy’s I’m not sure you would get by yearend - they were constantly shutting the factory down and there were several people waiting over 6 months in some forums
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I’m the market for a 2023 BMW 330e…so if I’m reading this right, if I can get it ordered and delivered by 12/31/22, I will get the full $7500 credit (before the bill it was ~$5800) as all 330e’s for NA are being built in Mexico, but if I order today and it somehow gets delayed to 01/01/23 I might get $0 depending on where the battery is sourced/assembled?
Don’t think you will get $7500, probably $5,836. Also some hackers here have reported that they got European allocation so make sure you can get one a Mexico allocation. If it’s delayed past this year, you can always not take delivery, although deposits might be non-refundable depending on your state.
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Thanks for the info. I’ve read summaries from various outlets and the PDF cheat sheet that was posted earlier, and the way I’m interpreting this is PHEV/EV cars get $7500 no matter what now assuming they meet the criteria for batteries in 2023 (I’ve yet to read something definitive on what $ PHEV’s get for the remainder of 2022, which leads me to believe it’s bumped up to $7500 as well this year). I definitely wish it was clearer! I’m in Alabama but potentially buying in Georgia, so I’ll have to run the deposit question by the local dealer to see how that would work if I don’t take delivery.
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I bought two 330e cars in the last 11 months and they were both manufactured in Mexico. I have another one on order and the allocation I received will be built in Germany and thus will not qualify for the $5836 federal tax credit. Currently all the outstanding 330e allocations are scheduled to be built in Germany, hoping the October allocations will switch back to Mexico…
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If it is built in Mexico and delivered this year, you would be eligible for the $5836 credit, not $7500.
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For the remainder of 2022, if the vehicle is built in North America, it gets whatever it got earlier in the year. Nothing else changes. If that was $0, its still $0. If that was $5000, it’s still $5000. If that was $7500, it’s still $7500.
Starting in 2023, there are two ways to qualify for a credit:
There is a battery manufacturing requirement, that states at least 50% of the battery must be manufactured in NA or a FTA country. That qualifies for $3750.
There is a battery critical material sourcing requirement, that states at least 40% of the critical materials must come from either NA or a FTA country. That qualifies for $3750.
There are a whole bunch of ways to disqualify for any credit.
If the vehicle is not built in NA, disqualified. If the msrp exceeds the income limits, disqualified. If you make too much money, disqualified. If the battery is less than 7 kWh, disqualified.
Thus far, its fairly well understood what vehicles will be automatically disqualified.
What is not known is what, if any, vehicles will qualify. The gov has not yet issued guidance on how to define what qualifies, so any list specifying if something will get the credit at this point is making stuff up.
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