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Accountancy Slice
North America
The Biden administration may allow European companies to share in billions of dollars in U.S. tax incentives for electric vehicles if the two sides can reach a trade deal in the next few weeks, a senior administration official has said. Although no such concessions will be included in a long-awaited proposed guidance that the Treasury Department will release for the incentives next week, Politico reported the official as saying that ongoing talks between the U.S. and EU could produce an agreement allowing vehicles that include European minerals to qualify for the full extent of the tax breaks. Those vehicles would still have to be made in North America. While European companies are already eligible for half of the $7,500 credit if they assemble cars in North America, the EU is fighting with the U.S. over the remaining $3,750 in incentives. That provision requires that 40% of the value of the critical minerals must be extracted or processed in the United States or in a country with which the U.S. has a free trade agreement. That level increases to 80% by 2027.
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