By Paul Benfer –
The analysis below was provided by the Transportation Intermediaries Association (TIA) in their weekly email to the membership.
EV Tax – Impossible to Qualify For?
Congress is set to approve expanded tax credits for electric vehicles in the inflation Reduction Act. However,
there’s a catch: As the rules are currently written, no EV on the market would qualify for the $7,500 tax credit.
This is because the batteries used to make the cars must originate from North America; our current EV’s are
using batteries made in China.
As was passed in the Senate, the Inflation Reduction Act will require batteries to have – at a minimum – 40% of
the materials originating from North America, or a US trade partner by 2024 to be eligible for the tax break,
then by 2029 all battery parts must be made in North America.
American made batteries start the prerequisites for eligibility, but the list goes on. Any battery that contains
minerals “extracted, processed, or recycled by a foreign entity of concern,” is also banned. Entities of concern
include any state promoting, or affiliating itself with terrorism, or countries blocked by the Treasury
Department’s Office of Foreign Assets Control (China).
What Chuck Schumer and Joe Manchin think is tough-on-China, Auto dealers are saying it will be tough-on business,
because like stated above, no EV’s meet these requirements for the tax break.
TIA will keep you updated with any further developments.
It’s incredible how duplicitous our elected officials are when it comes to spending the public’s money. They tell us they are going to help with an EV tax credit to help migrate away from gas and diesel vehicles but then write legislation with tax credits that no one can use. Meanwhile, you will pay more via an indirect tax on business and via audits performed by the IRS, which congress is more than doubling in size. And don’t tell me you believe the politicians who state that anyone that who less than $400k won’t be audited. There aren’t enough people that make over $400k to raise the revenue they want. Fifty percent (50%) of audits are performed on individuals that make $75k or less. When the IRS contacts you about an audit, remember who foisted this garbage piece of legislation on the American public.