The incoming Trump Administration intends to kill the IRA’s $7,500 EV tax credit, which has encouraged investments in North American EV supply chains. Companies are concerned.
While some view the removal of the EV tax credit as a push for market independence, it could ultimately harm EV sales and strengthen Chinese dominance in the sector.
The tax credit incentivizes manufacturers to reduce reliance on Chinese materials by requiring that at least 50% of critical materials come from North America or friendly nations.
Despite calls from certain automakers, including Tesla, to eliminate such subsidies, losing the IRA's tax credit may undermine efforts for local investments and manufacturing.
#ev-tax-credit #inflation-reduction-act #trump-administration #electric-vehicles #north-american-supply-chain
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