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Americans buying electric vehicles will no longer be able to claim federal tax credits of up to $7,500 if their cars contain Chinese materials, the Biden administration announced Friday, the result of a landmark 2022 climate law that sought to reduce U.S. reliance on clean-energy components from China.

The final rule from the Treasury Department codifies a draft rule from December that sharply limited the number of EVs that qualify for the credit. Only 22 of the more than 110 EV models on sale in the United States are eligible for the credit this year, according to the Alliance for Automotive Innovation, a trade group.



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