The planned subsidies for electric cars had caused upsets between the USA and the EU.
(Photo: AP)
Washington Shortly before the end of the year, the US Treasury Department specified the new rules for incentives to buy electric cars, which should come into force in spring 2023. Specifically, the USA is now making concessions to the EU on an important point: Electric vehicles leased by companies should also be able to be subsidized with tax credits of up to 7,500 US dollars in the future.
As a result, European electric cars that are leased in the USA can also benefit from the incentives. The German car manufacturers in particular would benefit from this, as they tend to target corporate customers.
The planned subsidies had caused resentment between the USA and the European Union because they envisage market barriers for foreign car manufacturers.
The European Union had therefore tried to find a leasing solution in advance. According to Brussels, this would cover a large part of European e-car exports to the USA, probably well over half.
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From next year, the USA wants to promote the purchase of electric cars with up to 7,500 dollars per vehicle – but only if the models were mainly manufactured in the USA. Europeans fear that their companies will be systematically disadvantaged by the strict regulations.
The incentives for buying electric cars go back to the so-called Inflation Reduction Act (IRA), which US President Joe Biden signed in August. It is scheduled to come into force on January 1, 2023 and contains numerous “Made in America” regulations.
In order to qualify for the full tax credit, future EVs sold in the US must be assembled in North America. Also, electric vehicles must source a significant portion of their battery components and minerals from the United States or from countries with which the United States has free trade agreements. This effectively excludes imports from the EU.
European car manufacturers are gaining time
The dispute over e-car incentives has not yet been finally resolved. The US has delayed the start of the planned tax stimulus by several months, until at least March 2023.
This will give European automakers some time to adapt to the regulations. On the other hand, the postponement also means that not all details have been finally clarified – which creates new uncertainty among manufacturers and consumers.
The leasing solution is now at least a loophole with which European car companies can partially circumvent the new rules. Democratic Senator Joe Manchin, chairman of the Energy Committee, therefore sharply criticized the Treasury Department.
The authority would have “bowed to the wishes of companies looking for loopholes,” he said on Thursday. The law is being “carelessly interpreted,” he warned, and is in danger of losing its desired effect: namely that American companies and production in particular benefit from the incentives.
Overall, the IRA includes $ 370 billion, which should flow mainly in the form of tax rebates. Anyone who produces wind turbines or green hydrogen in the USA, who buys an electric car or puts solar panels on their roof will in future be rewarded by the state. However, only if the products or at least essential parts were manufactured in the USA.
More: Where once heavy industry was stunted, electromobility is now booming. A new “Battery Belt” is being created in the USA – an enormous feat that also entails risks.