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

March 30 news, according to foreign media reports, in recent years, the United States has provided manufacturers with incentives, including tax credits and cash subsidies, in the construction of chip, electric vehicle and battery factories, in order to attract relevant manufacturers to invest in building factories.

LG New Energy, which has decided to invest 7.2 trillion won, or about $5.5 billion, to build a lithium iron phosphate battery plant in Arizona will also receive subsidies from the United States.

However, according to the latest reports, LG new energy is currently considering accepting cash subsidies from the United States and not choosing tax credits.

Sources revealed on Wednesday local time that LG New Energy is said to be studying whether there will be accounting problems if it receives cash subsidies under the relevant US programs.

Foreign media reported that according to the new subsidy program launched by the United States, manufacturers eligible for subsidies can choose between tax credits and cash.

In the two subsidies, the cash subsidy will be included in the operating profit, which can significantly improve future performance; although the tax credit can directly credit the tax, but it has some limitations, it only applies to the corporate tax linked to the net profit, the tax rate is 21%. If the net profit is very small, the income will be higher than the tax they actually have to pay.

In terms of batteries, manufacturers such as LG New Energy receive a cash subsidy of $35 for every cell that produces 1kWh and $45 for 1kWh's battery modules.

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