Treasury Guidance Due Next Week on EV Credit; U.S. Trade Chief Testifies Before Congress
The U.S. Treasury confirmed this week that it will issue guidance sometime next week on how the battery sourcing requirements of the Clean Vehicle Tax Credit (CVTC) will be implemented. The CVTC requires that, in order to qualify for the $7,500 credit, a percentage of a vehicle’s battery must be made or assembled in North America or a U.S. free trade agreement partner, and a percentage of a battery’s minerals must be extracted or processed in North America or a U.S. free trade agreement partner. Originally due before the end of the year, Treasury announced in December that the release of the battery sourcing would be delayed. Treasury’s report has been widely anticipated, and could drastically alter which vehicles qualify for the credit.
Tai on the Hill
U.S. Trade Representative (USTR) Katherine Tai testified this week before the Senate Finance Committee and the House Ways & Means Committee on the Biden Administration’s 2023 trade agenda. Tai faced questions and heard concerns from committee members about the administration’s negotiations on “mini” trade pacts with trading partners like Japan and the European Union on critical battery minerals that would allow them to qualify for FTA-equivalent status under the battery requirements of the CVTC. Members of the committees also criticized the White House for a lack of transparency on trade and the lack of an ambitious trade agenda, including not asking for the renewal of Trade Promotion Authority (TPA), and not pursuing the negotiation of new free trade agreements.
West Coast Port Negotiations
Also this week, AIADA joined a broad coalition in sending a letter to the White Houseurging the administration to encourage a resolution to the ongoing labor dispute at the West Coast ports to avoid further supply chain disruptions.
Quote of the Week
“Not pursuing new tariff-reducing enforceable trade agreements breaks a four decade long bipartisan approach to trade policy and means we are missing out on opportunities to advance U.S. economic interests, U.S. security, and create jobs right here in America.”
-Letter from House Ways & Means members to USTR Katherine Tai (Inside U.S. Trade)
ICYMI
In case you missed it, check out AIADA Chairman Mike DeSilva’s latest blog, Bad Trade Policy is the Worst Kind of Sequel.
Friday Feel Good
Here is just one recent example of how dealers are doing good:
The Fred Beans Automotive Group, through its charitable foundation, has donated $100,000 toward two major construction projects and the purchase of two new fire trucks by the Plumsteadville Volunteer Fire Company in Pennsylvania.The donation will help relieve a portion of debt incurred by the company, which has undertaken the construction projects and fire truck purchases to ensure its future. (patch.com)
We want to hear more about how you are supporting your local community – tweet us at @AIADA_News and use the hashtag #DealersDoGood.
