The Clean Vehicle Tax Credit under the Inflation-Reduction Act (IRA) enacted in the US last summer has had only a ‘North American final assembly’ requirement as its main requirement since it went into effect in August; with the publication of proposed regulations (guidance) by the Treasury Department and the Internal Revenue Service on 17 April, the ‘critical minerals’ and ‘battery parts’ requirements were added the following day on 18 April. The guidance was published on 18 April. It has been reported in various places that many electric vehicles (BEVs/PHEVs), including the Nissan LEAF, are no longer eligible for the tax credit.The electric vehicles that are in use from 18 April and are eligible for the tax credit include Cadillac, Chevrolet, Chrysler, Ford With the prolonged dysfunction of the WTO, blatant home-grown favouritism has become the norm around the world, with security and decarbonisation, so to speak, as the banner of the organisation.
This section analyses the details of the guidance on the US IRA Clean Vehicle Tax Credit and its future impact on the global automotive industry.