Shulou(Shulou.com)11/24 Report--

CTOnews.com, December 20 (Xinhua)-- according to the Wall Street Journal, the U.S. government postponed the introduction of detailed new tax incentives for electric vehicles on December 19 because of strong opposition from allies in Europe and Asia, saying the subsidy discriminated against domestic companies.

The US Treasury Department of Tuyuan Pixabay said details of the battery procurement requirements that must be met for electric vehicles would be released in March next year, not as planned by the end of this year at the latest.

However, the US Treasury said it would release "expected direction information" for battery requirements by the end of the year to help manufacturers prepare to identify vehicles eligible for tax credits, but did not specify what information would be provided at that time.

CTOnews.com learned that the $430 billion inflation reduction Act (IRA) imposed complex restrictions on tax credits based on purchases of battery components and key minerals. The law, signed by President Joe Biden in August, limits electric car tax credits to vehicles assembled in North America, in part to rid the United States of batteries from China, which now account for 70 percent of the world's supply. but it only gives the U.S. Treasury Department to solve thorny issues about battery procurement rules by the end of the year.

Some of the requirements for the tax credit take effect immediately on January 1, including new caps on the income of buyers and the retail price of eligible vehicles.

Treasury guidance has now been postponed to sometime in March, detailing a requirement of $3750, that is, at least 40 per cent of the value of key minerals in batteries is mined or processed in the United States or countries with free trade agreements with the United States, or recycled in North America. Another $3750 requires at least 50 per cent of battery components to be manufactured or assembled in North America. These two percentages are rising every year.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.