Extended $7,500 Tax Credit For Electric Vehicles Under The Inflation Reduction Act

Image Credit : NBC Chicago

The tax credit provision was discussed during a virtual meeting between Valdis Dombrovskis and Katherine Tai.

In order to encourage domestic battery and electric vehicle production.

Democrats incorporated the credit into the last month's passed climate and healthcare policy law.

However, automakers from Europe and South Korea sell millions of vehicles in the US.

Automakers from Europe and South Korea expressed intent to file lawsuits against the WTO.

The law contains a $7,500 tax credit that may be applied toward the price of an electric vehicle.

However, the electric car must meet certain requirements in order to qualify for full credit.

The battery must have been made in North America, with 40% of the metals mined or recycled there.

The European Commission claims that certain legal restrictions could hasten the transition from fossil fuels and halt climate change.

However, the EU's executive branch expressed concern over the "potentially discriminatory nature of the electric vehicle tax credit provision."

During the call, Dombrovskis recalled that "discriminating against EU manufacturers makes it much harder for them to contribute.

When US consumers want to purchase electric vehicles, their options are limited due to the electrification of vehicles in the country.