Home > News content

U.S. Treasury Department: U.S. cars using Chinese batteries starting in 2024 will not enjoy tax exemption

via:快科技     time:2023/12/2 15:04:07     readed:231

Fast Technology news on December 2, local time on December 1, the US Treasury Department issued an announcement announcing:

Starting in 2024, U.S.-made electric vehicles that include battery components made or assembled in countries such as China will no longer qualify for a tax credit of up to $7,500 provided by the U.S. Inflation Reduction Act (IRA).

According to the new rules, starting in 2024, U.S. clean vehicles eligible for tax exemption cannot contain battery components manufactured or assembled by a "concerned foreign entity" (FEOC).

In addition, after 2025, compliant vehicles cannot contain critical minerals such as nickel and lithium that are extracted, processed or recycled by such entities.

The new rule is aimed at companies from countries such as China, Russia, North Korea and Iran, and will be considered a "concerned foreign entity" (FEOC) if a company or group is incorporated in one of those countries, or if its state-owned part meets the 25 percent threshold.

The bill was signed by the President of the United States on August 16, 2022,In September of that year, the Inflation Reduction Act became law

On April 17 this year, the US government issued the detailed rules of the "Inflation Reduction Act", announcing the list of electric vehicles that can be subsidized, a total of 14 models, but the Japanese and Korean brands that rank top in US sales are completely excluded

The rules state,Only EVs that end up being assembled in North America are eligible for a tax credit of up to $7,500

The rules also show that electric vehicles that use more than 50% of the battery parts assembled in North America can enjoy a subsidy of $3,750 per vehicle; If you use more than 40% of the key minerals mined and processed in the United States or countries that have signed free trade agreements with the United States, you can enjoy a subsidy of $3,750 per vehicle.

Korean media said that the Hyundai GV70 assembled in the Alabama factory in the United States was originally in line with the scope of subsidies, but the details were excluded after the publication, not only that, Japanese cars and some American brands of electric vehicles set up factories in North America also failed to enjoy the policy preferences because they did not meet the battery conditions.


translate engine: Youdao

China IT News APP

Download China IT News APP

Please rate this news

The average score will be displayed after you score.

Post comment

Do not see clearly? Click for a new code.

User comments