This credit helps reduce the cost of purchasing a new, alternative-fuel vehicle, making these cost-efficient vehicles more accessible to working families. Recent updates to the law limit eligibility by income and MSRP, ensuring it’s not utilized by wealthy consumers on luxury vehicles. Moreover, for vehicles to qualify, they must use critical minerals largely sourced from the U.S. or free trade partners, and battery components assembled in North America. Coupled with production incentives, this credit has been instrumental in catalyzing the resurgence of auto manufacturing in America.
EV Battery Cell Plant
- Status: In Construction
- Location: New Carlisle, IN (St. Joseph County)
- Congressional District: Indiana 2nd
- Technology: Electric Vehicle (EV) Batteries
- Relevant Tax Provisions:
- Manufacturing Production Tax Credit (45X)
- Batteries produced at this facility will help vehicles qualify for the New Clean Vehicle Credit (30D)
- Fast Facts:
- General Motors (GM) and Samsung SDI are investing $3 billion in a joint venture to establish an EV battery cell plant in Northern Indiana.
- Construction of the plant will create an estimated 1,000 local jobs. Once fully operational in 2026, the facility will employ approximately 1,700 people.
- At full capacity, the plant should be able to produce 30 Gigawatts-hours of battery capacity annually, helping GM scale its EV capacity to more than 1 million units per year.
Rivian Auto Plant
- Status: Operational
- Location: McLean County, IL
- Congressional District: Illinois 17th
- Technology: Electric Vehicles
- Relevant Tax Provisions:
- Manufacturing Production Credit (45X)
- Producing vehicles that qualify for the Clean Commercial Vehicles Credit (45W) and New Clean Vehicle Credit (30D)
- Fast Facts:
- Rivian purchased a shuttered automotive manufacturing plant in Normal, IL in 2017. Since then, Rivian has added thousands of manufacturing jobs to McLean County, with plans to add hundreds more as the company expands the original footprint of the plant to launch its next generation R2 platform.
- Since starting operations in 2021, the plant has produced over 100,000 vehicles.
- Rivian collaborates with Heartland Community College in Normal, IL, to administer an Associate in Applied Science Degree program focused on electric vehicle (EV) technology. The company provides its technology for training and company employees serve as instructors.