|
The
White House said Biden will sign legislation to approve the $430
billion climate, health and tax bill on Tuesday. The bill
restructures the existing $7,5000 new EV tax credit and creates
a new $4,000 rebate for used EVs. It also includes tens of
billions of dollars in new loan, tax credit and grant programs
for automakers to build cleaner vehicles.
Many automakers and dealers have been working with customers to
complete binding written contracts ahead of Biden's signing to
make them eligible for credits even if they have not received
vehicles.
The Alliance for Automotive Innovation, a trade group
representing Volkswagen, General Motors Co, Toyota Motor and
Ford Motor among others, said earlier the law would make 70% of
72 U.S. electric, plug-in hybrid and fuel-cell EVs that
currently qualify ineligible upon Biden's signing.
On Jan. 1, when the bill's new income and price caps and battery
and critical mineral sourcing rules take effect, "none would
qualify for the full credit when additional sourcing
requirements go into effect," the group added.
An estimate from the Congressional Budget Office forecasts
11,000 new EVs will receive tax credits in 2023 assuming $7,500
per vehicle.
Audi of America, Kia Corp and Porsche said Friday that buyers of
its EVs will lose access to federal tax credits when Biden
signs.
Audi said only its Audi plug-in hybrid electric will retain its
existing federal credit through the end of 2022.
The bill makes any EVs assembled outside North America
ineligible for tax credits, which has brought criticism from the
European Union, South Korea and many automakers.
GM and Tesla previously hit the 200,000-vehicle cap and are no
longer eligible but will again be eligible starting Jan. 1 under
stricter sourcing and income rules.
(Reporting by David Shepardson; Editing by Marguerita Choy)
[© 2022 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
