Fewer new electric vehicles will qualify for a full $7,500 federal tax credit later this year, and many will get only half that, under rules proposed Friday by the U.S. Treasury Department.
The rules, required under last year’s Inflation Reduction Act, are likely to slow consumer acceptance of electric vehicles and could delay President Joe Biden’s ambitious goal that half of new passenger vehicles sold in the U.S. run on electricity by 2030.
The new rules take effect April 18 and are aimed at reducing U.S. dependence on China and other countries for battery supply chains for electric vehicles.
Electric vehicles now cost an average of more than $58,000, according to Kelley Blue Book, a price that’s beyond the reach of many U.S. households. The tax credits are designed to bring prices down and attract more buyers. But $3,750, half the full credit, may not be enough to entice them away from less-costly gasoline-powered vehicles.
Stocks rally to cap a winning month
Stocks rallied Friday to close out a winning March and first quarter of the year, feats that looked questionable just a couple weeks ago when Wall Street was tumbling in turmoil.
The S&P 500 rose 1.4% to cap a 3.5% gain for the month. It also locked in a second winning quarter in a row after falling sharply most of last year on worries about high interest rates meant to get inflation under control. The Dow Jones Industrial Average rose 415 points, or 1.3%, while the Nasdaq composite climbed 1.7%.
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