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The Inflation Reduction Act offers large tax credits for EVs satisfying local content requirements
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Public Policy Day at the 2023 Washington DC Auto Show consisted of a number of announcements by OEMs as well as five panel discussions, made up of personnel from transportation-oriented government and nongovernment agencies.
However, the Supporting Clean Vehicle Transition panel discussion provided a perspective on the “buy American” provisions of the Inflation Reduction Act (IRA) by no less a luminary than Ambassador Stavros Lambrinidis of the EU.
Ambassador Lambrinidis outlined the EU’s position on the IRA as being concerned by what he called the discriminatory provision of the EV Clean Vehicle Tax Credit, which requires that final assembly of EVs occurs in the US. Ambassador Lambrinidis argued that US consumers “will have much less choice in what they can buy” while remaining eligible for the tax credit.
This story is an extract from the February 2023 issue of AutoForecast Solutions’ monthly report. Click here to download the full report, or to catch up on previous months
The ambassador went on to speak about how the US consumer would be better served with a more liberal interpretation of the law, arguing that politically allied nations such as those that form the EU, and perhaps the EU itself, be considered as being qualified to sell EU-built EVs in the US that would receive the tax credit, while a more formal trade agreement was being worked out.
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