Government, US IRA response speed… Submission of electric vehicles and battery opinions

The government is speeding up the US inflation reduction (IRA). In the aftermath of the IRA, he submitted a statement on discriminatory provisions that would be on the domestic industry. The letter was sent out that there is room for the common norms between Korea and the United States.

The government announced on April 4 that it has submitted an opinion on the clean energy-related tax deduction in the IRA.

The US Treasury has previously gathered opinions to prepare the IRA sub-regulations. From October 5th, we have prepared a communication window for six areas related to clean energy incentives in IRA, including eco-friendly car tax deductions for a month.

The government emphasized that the requirements for eco-friendly car tax deductions in the IRA were also violated in international trade norms such as the Korea-US Free Trade Agreement (FTA) and the World Trade Organization (WTO). In addition, the government requested a three-year grace period to apply the same eco-friendly car tax deduction requirements in North America to Korea or to implement eco-friendly car tax deductions.

In detail, we proposed a plan to suspend the requirements for eco-friendly car tax deductions for companies scheduled to invest in the United States for three years. At the same time, even if some assembly process was carried out in North America, the definition of the final assembly was required to be interpreted in a relaxed manner so that the final assembly requirements could be met.

It also contains opinions on the satisfaction of mineral requirements. The battery mineral procurement country related to the nation of the country ▲ interpreted the range of FTA and the mineral procurement ratio is not judged by individual mining units, but on the entire mineral value.

He also requested the expansion of the commercial eco-friendly car, which provides incentives without conditions. According to the IRA regulations, commercial eco-friendly car buyers will receive up to $7,500 tax deductions without conditions (final assembly requirements, battery requirements, foreign subsidiaries, etc.). The government has also ordered a rental car and short-term lease vehicles to include the commercial eco-friendly car range.