Nikola (NASDAQ:NKLA) stock is charging higher on Thursday as investors react to news concerning the Inflation Reduction Act of 2022.
The big news affecting NKLA stock today is Sen. Joe Manchin announcing his acceptance of the bill. Manchin is a swing vote holder and previously stopped the bill from moving forward in the Senate.
With Manchin now in favor of the legislation, several stocks are seeing gains today. That includes EV companies such as Nikola. That’s partially due to the bill’s focus on battling climate change while promoting green energy.
As part of those efforts, the Inflation Reduction Act of 2022 includes tax credits to entice consumers to switch to EVs. That has it maintaining the $7,500 federal tax credit while removing the 200,000 EVs sold restriction.
NKLA Stock: Tax Credits Are Only for NA EVs
However, there are some details worth noting. That includes limitations on the tax credit for EVs that are mostly made in North America. This requires them to be assembled in North America and for the battery components to come from North America as well. They must also contain a certain percentage of materials from countries with free trade agreements with the U.S., Electrek notes.
If the Inflation Reduction Act of 2022 can make it past the Senate, it will likely be passed by the House of Representatives. After that, all it would require is a signature from President Joe Biden to become law.
NKLA stock is up 10.1% as of noon Thursday.
There’s more recent stock market news below!
InvestorPlace has all of the latest and greatest stock news traders need to know about for Thursday! Among that is what has shares of chip stocks, solar stocks and Royal Caribbean (NYSE:RCL) stock moving today. You can get more info on those matters at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.