The Inflation Reduction Act comes with numerous “Made in America” regulations.
(Photo: Reuters)
Washington The US government wants to postpone the start of the planned tax incentives for electric vehicles by several months. This was announced by the US Treasury Department in Washington on Tuesday night. The authority is entrusted with the implementation of the controversial tax credits.
From next year, the USA wants to promote the purchase of e-cars with up to 7,500 dollars per vehicle. However, the incentives only apply if the models were predominantly manufactured in the USA. Europeans fear that their companies will be systematically disadvantaged by the market barriers.
Now European car manufacturers seem to be gaining some time. The Treasury said it would publish detailed requirements in March 2023, rather than by the end of this year as planned. Only then, according to the authority, could the new rules officially come into force.
However, the Treasury wants to release “information about the expected direction” this December. This should help manufacturers to adapt to the regulations.
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The electric stimulus goes back to the Inflation Reduction Act (IRA), which US President Joe Biden signed into law in August. It is scheduled to come into force on January 1, 2023 and contains numerous “Made in America” regulations.
Deputy Finance Minister: “We want strong Europeans”
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.
A rapprochement in the transatlantic subsidy dispute had already become apparent last week. The postponement by the Ministry of Finance can now mean two things: On the one hand, Washington seems to be taking the concerns from Brussels and other trading partners seriously. On the other hand, the dispute does not seem to have been finally resolved, otherwise it would probably not be necessary to postpone the detailed set of rules.
Deputy Finance Minister Wally Adeyemo recently signaled a willingness to compromise in an interview with the Handelsblatt. “It is in both our economic and security interests to ensure that Europe has a thriving industrial base,” he stressed.
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 a solar panel 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.
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