Treasury Releases New EV Tax Credit Guidance; Hearing on Choice in Automobile Retail Sales Act
This week the U.S. Department of the Treasury released the latest guidance on rules governing which vehicles can qualify for the EV Tax Credit come Jan. 1, when the latest rules take effect. The new requirements will disqualify a vehicle from receiving the credit if any of its battery components are made or assembled by a “foreign entity of concern,” such as China. Though the administration is taking a strict stance on the ban, automakers received some flexilbity, including a two-year phase-in period for enforcing the rule on some difficult-to-trace battery powders. It’s unclear whether any of the vehicles that currently qualify for the tax credit will no longer qualify when the rule takes effect in 2024.
EPA Tailpipe Emissions Rule
The House Rules Committee will consider the Choice in Automobile Retail Sales Act on Monday, setting up a vote on the House floor as early as next week. The legislation, sponsored by Rep. Tim Walberg (R-MI), would permanently prohibit the EPA from finalizing it’s proposed emissions rule.The Senate companion bill has not yet seen much movement. AIADA thanks those dealers and dealership employees that reached out to their legislators and urged them to sign the letter led by Rep. Lisa McClain (R-MI) on the proposed EPA Tailpipe Emissions Rule. The letter, which amassed 220 congressional signatories, has been delivered to congressional leadership, but it’s not too late to let Congress know how the proposed rule will negatively impact dealerships and consumers:
Also this week nearly 4000 dealership franchises across the country sent a letter to President Joe Biden to reconsider his administration’s aggressive electric vehicle targets. The letter, publicly available at the EV Voice of the Consumer, cites an oversupply of EVs, prompted by Biden Administration policies and regulations, but lagging customer demand.
Quotes of the Week
“While automakers in the U.S. are working to build up domestic supply chains and diversify their sourcing, this shift will take time.”
-Jennifer Safavian, CEO, Autos Drive America (Politico)
“While the goals of the regulations are admirable, they require consumer acceptance to become a reality. With each passing day, it becomes more apparent that this attempted electric vehicle mandate is unrealistic based on current and forecasted customer demand. Already, electric vehicles are stacking up on our lots which is our best indicator of customer demand in the marketplace.”
-Letter to President Joe Biden signed by 4000 Dealerships (EV Voice of the Consumer)
ICYMI
In case you missed it, the latest edition of AutoDealer magazine is out now – check it out!
Friday Feel Good
Here is just one recent example of how dealers are doing good:
The Toyota Lexus Minority Owners Dealership Association collaborated with The Salvation Army to distribute more than 3,400 food boxes containing non-perishable supplies such as cereal boxes and canned goods at participating Toyota dealerships nationwide. (h/t CBT News)
We want to hear more about how you are supporting your local community – tweet us at @AIADA_News and use the hashtag #DealersDoGood.
