Latest News

The Wall Street Journal: New rules for EV tax incentives delayed after overseas opposition

0

WASHINGTON — The Biden administration on Monday delayed proposing detailed rules for new tax incentives for electric vehicles, following strong pushback from European and Asian allies that the subsidy program discriminated against their companies. 

The Treasury Department said details on the battery-sourcing requirements that electric vehicles must meet to qualify for up to $7,500 in tax credit will be released in March, instead of by the end of this year as earlier planned. 

The department said, however, it will release “information on the anticipated direction” of the battery requirements before year-end to help manufacturers prepare to identify vehicles eligible for the tax credit. It didn’t specify what information would be made available then. 

The EV tax incentives, part of the Inflation Reduction Act that President Biden signed into law in August, are designed to accelerate a transition to cleaner vehicles. But it also includes complex requirements aimed at boosting domestic production of electric vehicles and batteries, setting off complaints from European and Asian governments as well as auto makers. 

​​To qualify for the full $7,500 in tax credit, vehicles must go through their final assembly in North America, a requirement that disqualifies many electric vehicles from non-U.S. car makers since they are typically assembled overseas. 

An expanded version of this report appears on WSJ.com.

Also popular on WSJ.com:

Entrepreneur’s death at hands of Austin police prompts calls for change.

U.S. scores $4 billion windfall on oil-reserve sales.

: Disney stock on its way to worst year since 1974 after ‘Avatar’ sequel disappoints

Previous article

The Wall Street Journal: Yen surges as Bank of Japan surprises by letting benchmark rate rise

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News