Saturday, July 13, 2024

Hyundai could get federal EV tax credits with The Affordable Electric Vehicles for America Act

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US Senator Raphael Warnock of Georgia has introduced new legislation that could provide a reprieve on federal EV tax credits in the United States.

The law could allow manufacturers like Hyundai that do not yet have an EV manufacturing facility in the US to get a federal EV tax credit.

The Affordable Electric Vehicles Act for America introduces a phased period for EV procurement and manufacturing requirements set out in the Inflation Reduction Act.

Under the Inflation Reduction Act, to receive a federal EV tax credit, an EV must be manufactured in North America. Not only regulate the place of manufacture, regulations also regulate batteries, and the materials used in batteries must be sourced domestically or from countries that have free trade agreements with the US.

The Affordable Electric Vehicle Act for America will delay this provision until 2025 and the manufacturing requirement until 2026.

The regulation will be of great benefit to Hyundai as its $5 billion electric vehicle plant in Bryan County, Georgia is expected to be operational by 2025.

“I’m focused squarely on helping Georgia car buyers save money and helping car manufacturers who do business in our state thrive,” Senator Reverend Raphael Warnock said in a statement. “The Affordable Electric Vehicles for America Act will lower costs for Georgians and provide consumers more options when purchasing an electric vehicle, while also supporting good-paying jobs across our state and bolstering Georgia automakers like Hyundai. I’m going to do everything I can to get this bill over the finish line.”

South Korea has been vocal in its opposition to the Inflation Reduction Act, which excludes electric vehicles from Hyundai and Kia from receiving tax credits. Hyundai Motor Group chairman Euison Chung also paid a visit to Washington to discuss the move.

It has been reported that South Korean officials asked the Biden government to delay the new rules until the completion of its factories in 2025.

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