Final Assembly of the vehicle is a base requirement to qualify at all but doesn't make up part of the $7,500, $3,750 comes from the battery components and $3,750 comes from the critical minerals.Tesla would still qualify for the $3750 part of the tax credit, which accounts for the assembly. The other $3750 for mining critical battery components is the one in question. Will the Feds keep a strict regulation of 60%? Will they keep the clause on procuring from free trade countries? Will they give a 30 to 60 day cool off period, if not? It's all conjecture at this point.
So this year, following is what needs to happen:
- To qualify at all, Final Assembly of the vehicle needs to be in North America.
- $3,750 credit: At least 50% of the value of the battery components need to be manufactured or assembled within North America.
- $3,750 credit: At least 40% of the value of the critical battery minerals need to be the following:
- Extracted or processed in the US or a country the US has a free-trade agreement with.
- Recycled in North America.
Starting January 1 2025, a vehicle will no longer be defined as a "new clean vehicle" and is disqualified from the credit if it contains any critical battery minerals from a foreign entity of concern.
Foreign entities of concern currently include China, Russia, North Korea, and Iran.