EU gives guarded welcome to U.S. guidance on EV tax credits

BRUSSELS – The European Commission cautiously welcomed US guidance that meant EU companies could partially benefit from US inflation-reducing legislation, but said further improvements were needed.

The $430 billion Green Subsidies Act, which allows tax credits for the purchase of electric vehicles and other green products made in the US, will not make the US a global leader in the EV market at the expense of European countries. It raises concerns that

The U.S. Treasury Department has suggested that some imported vehicles will qualify for the Electric Vehicle Tax Credit under the Control Inflation Act.

The Treasury Department outlined its interpretation of the content requirements for the electric vehicle tax credit on Thursday, but postponed the final rule until March to give the agency more time to address the legal complexities. Did.

The European Commission, which coordinates the trade policies of the 27-nation European Union, said US guidance released on Thursday showed EU producers could benefit from tax credits on sales to commercial operators. However, if their vehicles were sold, they would not be entitled to such deductions.To private consumers.

The European Commission has said that eligible commercial clean vehicle credits will be available to EU companies without the need to change established or foreseen business models of EU producers. A commercial clean vehicle is, according to the guidance, “made by a qualified manufacturer.”

However, for new consumer clean vehicle credits, the vehicle must undergo final assembly in North America.

The European Commission said the anti-inflation law remains a concern, with provisions discriminating against clean vehicles and inputs made in the European Union, violating international law. There was also the risk that prices would rise as competition intensified.

The European Commission said the joint task force set up to discuss the topic will continue to seek solutions to EU concerns, including treating the European Union like all partners in US free trade agreements. rice field.

“We welcome today’s announcement by the United States that more time will be devoted to addressing outstanding guidelines so that these issues can be adequately addressed,” he said.

European Union leaders, including French President Emmanuel Macron, who visited the White House in December said the bill would hurt EU industries already suffering from high energy costs, partly because of the war in Ukraine. He complains that he will give it to him.

Other critics include South Korea, home to Hyundai and Kia Motors, and Argentina, the world’s fastest growing producer of lithium, a key ingredient in batteries.

Bloomberg contributed to this report

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