Treasury Tweaks Vehicle Classification Rules, Easing EV Tax Credit’s Use

The Treasury Department is updating its criteria for classifying electric vehicles (EV) or other clean vehicles as sport utility vehicles (SUV), sedans, or other vehicle types, addressing confusion about its prior criteria in a way that will allow more vehicles to qualify for tax credits under the Inflation Reduction Act (IRA). The move is significant because non-sedan vehicles are subject to a higher price cutoff when determining their eligibility for the incentives. In addition, Treasury’s Feb. 3 notice is also...