Fisker and the new electric vehicle tax credit guidance

Updated guidelines for the Electric Vehicle Tax Credit, with a focus on electric vehicle batteries, will assist Fisker in supply chain and production planning.

Today the IRS released updated guidance on qualifying for an electric vehicle tax credit. the The new guidance focuses squarely on EV batteries In order to qualify for a $7,500 tax credit. This has been a long-awaited development in the electric vehicle industry, including electric vehicle manufacturer Fisker. The updated guidance will help Fisker supply chain and production planning going forward.

Manufacturers still need to perform final assembly of EVs in North America. However, the new guidelines have added “and/or” requirements for critical metals and battery components. Electric vehicles must meet critical metal sourcing and battery component requirements to qualify for the full $7,500 credit. If the electric vehicle only meets one of the requirements, it qualifies for a $3,750 credit.

Critical minerals must be mined or processed in the United States. Alternatively, it can be obtained from any country that has a free trade agreement with the United States. Another option is metal recycling in North America. Critical materials share starts at 40% in 2023 and increases 10% annually until it reaches 80% in 2027. Battery component part requires 50% of parts to be manufactured or assembled in North America in 2023. This percentage increases by 10% each year and reach 100% by 2029.

Effective date and eligible electric vehicles

The new rules will apply to electric vehicles that are put into service on or after April 18, 2023. It will be subject to the basic requirements for metal components and batteries described in the instructions. A list of eligible electric vehicles that meet the new guidelines will be available when the rules come into effect. At this time, we shouldn’t expect Fisker Ocean to appear on the list. However, Fisker clients who have a binding contract in writing as of August 2022 should speak to their tax professional IRS Guidelines On new electric vehicles purchased in 2022 or earlier.

Fisker next steps

Currently, Fisker manufactures the Ocean electric SUV in Graz, Austria with Magna Steyr. Although Fisker has expressed interest in US production of the Fisker Ocean. This was due to strong demand and changes to the electric vehicle tax credit. On the other hand, Foxconn will produce Fisker pears in Lordstown, Ohio. Fisker has not yet shared details regarding the sourcing of critical metals and battery components for the Fisker PEAR. However, Fisker does have a Fisker Ocean partnership with CATL, the largest EV battery manufacturer in the world. Updated guidance from the US Treasury Department should prompt Fisker to release details regarding its supply chain, manufacturing and assembly in North America.

Reserve your fisker perimeter

Book Fisker Ocean or Pears at https://fiskerinc.com/reserve using referral code DDK87H.

Fiskerati forums

Go to the Fiskerati forums to discuss the Fisker Ocean and follow various threads about this electric SUV.

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Download the new Fiskerati app from Apple App Store or google apps.

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