The EU is satisfied with the US decision to reduce taxes on electric cars

The EU Commission announced that EU companies can benefit from the Commercial Clean Vehicle Loan program in the recently published law implementation guide, which is prepared by the US to reduce inflation and also plans to encourage the purchase of electric cars with tax breaks.

Emphasizing that the access of EU commercial vehicle sales to the subsidy program in the US is welcome, the statement read: “Commercial loans for clean vehicles in the US will be available to companies of the EU without requiring changes in manufacturers’ business models”.

EU COMPANIES CAN BENEFIT FROM INCENTIVES

In the statement, it was noted that this strengthens EU-US cooperation. The US in the common goal of combating climate change supports transatlantic supply chains and is a win-win situation.

Noting that US taxpayers can benefit from EU-made electric vehicles and components, it was recalled that EU companies that conduct commercial leasing contracts for electric vehicles can benefit from incentives under the Electricity Reduction Act. Inflation.

In the statement, it was recalled that the EU requested the US not to discriminate in the sales of electric vehicles to individual consumers.

At this stage, electric car manufacturers in the EU can benefit from tax breaks in the US on commercial sales, while they cannot benefit from such rebates on sales to normal consumers.

LAW TO REDUCE INFLATION

The Inflation Reduction Act, which includes comprehensive health, weather and tax regulations aimed at reducing inflation in the US and supporting various investments, is a topic of debate in Europe. The law includes plans to invest approximately $400 billion in clean energy and strategic sectors in the United States.

The law, which also provides incentives for the purchase of electric cars with tax cuts, includes regulations such as tax cuts of up to $7,500 for electric vehicles that use batteries produced in North America and that contain minerals from mines in this region.

The EU is concerned that the new regulation, which makes tax cuts contingent on US-produced content, will put European car companies and manufacturers at a disadvantage in the field of green economy, including batteries and renewable energy equipment.

For Europe, which is going through a difficult period with the energy crisis, high inflation and possible recession, the main risk is that the industry will be left behind. The EU considers these tax breaks, which do not cover its own cars, to be discriminatory and seeks exemptions in the US (BRITISH AUTOMOBILE CLUB)