Not all electric vehicles (EVs) will qualify for the clean vehicle tax credit. Specifically, EVs placed in service in 2024 won’t be eligible if their battery components are manufactured by a foreign entity of concern (FEOC). EVs placed in service beginning in 2025 mustn’t have batteries containing applicable critical minerals extracted, processed or recycled by a FEOC. The IRS has issued guidance on this “excluded entity restriction.” It provides rules for determining whether applicable critical minerals (and their associated constituent materials) and battery components are FEOC compliant, meaning they don’t violate the excluded entity provision. For more details: https://bit.ly/49V7Mnb
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