The U.S. Treasury Department has introduced new rules that will result in fewer new electric vehicles qualifying for the full $7,500 federal tax credit. The rules, which come into effect on April 18, aim to reduce U.S. dependence on other countries for battery supply chains. However, the higher prices of electric vehicles, which now average over $58,000, mean that the new tax credits may not be enough to entice buyers away from cheaper gasoline vehicles. While the Biden administration acknowledges that fewer electric vehicles will be eligible for tax credits in the short term, they claim that over time, more EVs and parts will be manufactured in the U.S., creating a domestic supply chain and more jobs. The new rules also place limits on the percentage of battery parts and minerals that can come from countries that do not have free trade or mineral agreements with the United States.