Biden-Harris Administration Releases Treasury Guidance for Electric Vehicle Incentives


Larisa Manescu, 

WASHINGTON, DC - Today, the Biden-Harris Administration released a proposed rule for guidance surrounding mineral and manufacturing requirements for the electric vehicle incentives in the Inflation Reduction Act. 

The IRA provides a tax credit of up to $7,500 for electric vehicles that meet certain production requirements. The climate law also promotes the used EV market, which is important as the majority of consumers buy used vehicles.

Treasury will publish the proposal in the Federal Register on April 17, which launches a 60-day comment period before Treasury issues final guidance. A list of eligible electric vehicles will be available on April 18. Automakers will certify to the IRS each month which of their models qualify, and the agency will keep an updated list on its website.

In response to the guidance, Katherine García, Director of Sierra Club’s Clean Transportation for All campaign, released the following statement:

We appreciate the Treasury moving swiftly on releasing this guidance. Providing federal incentives for cleaner vehicles is crucial. We are in the midst of a climate crisis, and our gas-powered vehicles are responsible for the majority of this pollution, in addition to contributing to health-threatening air quality across the nation.  

“Our nation’s transition to electric vehicles must be delivered with strong standards that protect human rights, respect Indigenous communities, and promote manufacturing in the U.S. This guidance is important to help get us there and promote the long-term growth of the American EV industry. 

"As critical mineral demand rises to power technologies like electric vehicles, we must make sure that the way we extract these resources is sustainable, ethical, pro-worker, and abides by environmental and human rights laws.” 

About the Sierra Club

The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit