Looming Treasury Rule Could Make or Break Biden’s Electric Car Hopes

Commentary from Andy Jack and Daniel Levin's blog post "Commerce Final Rule Heightens Uncertainty as to How Treasury Will Interpret 'Foreign Entity of Concern' for EV Credits Under Section 30D of the Inflation Reduction Act." was included in a Politico article examining the foreign entity of concern provision in the Inflation Reduction Act’s (IRA) electric vehicle (EV) tax credit.

“Commerce’s definition would substantially curtail the near-term availability of battery components and applicable critical minerals that could be used in credit-eligible vehicles,” they wrote in the post. “In so doing, it would likely limit the availability of credit-eligible vehicles and undermine [the EV tax credit’s] policy goal of incentivizing EV adoption.”