Unions urge Biden administration not to change EV tax credit rules

WASHINGTON, Jan 20 (Reuters) – A number of unions and civil society and environmental groups are urging President Joe Biden to reject efforts by the European Union and other foreign governments to reconsider strengthening car taxes. America’s electricity.

The $430 billion U.S. Inflation Reduction Act (IRA) passed in August limited the $7,500 consumer tax credit on North American-made EVs, but the U.S. Treasury in December said buyers are leasing vehicles assembled abroad. North America can benefit from a $7,500 green business tax.

Foreign governments have urged the Biden administration to do more to expand capacity.

“The IRA has the potential to be a catalyst for industrial cities that have been the worst hit in decades,” said a press release on Friday from the United Auto Workers, International Association of Machinists and Aerospace Workers, United Steelworkers, Sierra Club and Public. Citizens.

“We strongly urge you to ensure that the IRA is implemented as intended, without delays or strategic changes that undermine its promises to American workers and climate goals,” it said.

The White House did not comment on the letter Friday but pointed to comments by Biden in September that said the IRA bill would create “good-paying union jobs” and “increase energy security.”

EU Ambassador to the United States Stavros Lambrinidis said at the Washington auto show on Thursday that he was concerned about the “discriminatory” provisions of the EV tax credit, arguing that it meant consumers Americans “will have little choice in what they can buy”. can get a $7,500 credit.

“You can go green without discrimination,” Lambrinidis said.

The letter rejected suggestions from foreign governments that EV tax incentives violate World Trade Organization and free trade laws. “Antiquated trade rules should not be used to undermine our laws intended to support the growth of the clean energy economy,” said the book.

The EU in December praised the US Treasury Department’s decision to allow EV leased by buyers to qualify for up to $7,500 in commercial vehicle tax.

South Korea, Europe and some automakers in December sought approval from the Ministry of Finance to use sales tax on electric vehicles to encourage EV adoption.

Reporting by David Shepardson Editing by Bill Berkrot

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