IRS Releases EV Credit Guidance with Battery Info TBA; 117th Congress Sprints Toward Finish
This week the U.S. Treasury Department published preliminary guidance on the new Clean Vehicle Tax Credit (CVTC), but still has not released information on how key provisions, including the battery mineral and component thresholds, will be implemented. In addition to causing tension with allies and trading partners, including the European Union, South Korea and Japan, this week the uncertainty prompted a Hyundai executive to question whether the automaker would be able to move forward with plans to build an EV plant in Georgia without a fix to the CVTC. The CVTC provides a credit of up to $7,500 for electric and fuel cell vehicles with final assembly in North America, but with stringent new, and annually increasing, battery requirements which, depending upon implementation, could exclude many EVs currently sold in the U.S.
117th Congress
Also this week, Congress passed a Continuing Resolution, or “CR” to temporarily fund the government and avert a shutdown for another week while they work to reach a compromise on longer term legislation. They also passed the National Defense Authorization Act (NDAA) to fund defense programs, which along with the funding bill, will head to President Biden for his signature. Legislators are due to leave Washington no later than next Friday, December 23 and are racing to button up last-minute items before heading home for the holidays.
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Quotes of the Week
"If this [tax credit] continues to potentially hurt our growth, I think we'll have no choice but to really reassess where we go. We don't want to do that. The U.S. is so important to us as a company.”
-Robert Hood, Vice President of Government Affairs, Hyundai Motor Group (Politico)
“Expanding trade is the answer right now, not the problem, we need to be doing far more of it…So now's the time to tear down more of those barriers, especially as inflation is so high around the world. The antidote is more products, more competition, and more choices and lower prices for consumers. America seems to be the major country that's sitting on the sidelines.”
-Rep. Kevin Brady (R-TX), Ranking Member, House Ways & Means Committee (Politico)
ICYMI
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Friday Feel Good
Here is just one recent example of how dealers are doing good in their communities:
To kick off their 14 Days of Christmas, Valley Auto Mall in Nevada presented donations to three great local charities, including the Grant A Gift Autism Foundation, Hope Link of Southern Nevada, and the Injured Police Officer’s Fund.
We want to hear more about how you are supporting your local community – tweet us at @AIADA_News and use the hashtag #DealersDoGood.
