Hyundai Motor Factory constituency members
Use it to get through the lame duck session
Both the US Senate and the House of Representatives have proposed an amendment to the US Inflation Reduction Act (IRA), which provides for a $ 7,500 (about 10 million won) tax credit for electric vehicles alone. assembled in North America, to suspend the provision of the Inflation Reduction Act (IRA) for three years. As the US Treasury Department’s enforcement rules to be announced later this year alone are difficult to resolve the IRA toxin clause, the Korean government is likely to focus on reforming the law.
According to the Seoul Shimbun report on the 5th (local time), the representative of the State of Alabama Terry Sewell, a member of the Democratic Party, announced the previous day that the application of the rules of the North American final assembly, which began in August, would be postponed until December 31, 2025, the “Affordable Electric Vehicles for the United States” bill was introduced. It is also proposed to postpone the date of entry into force of the regulation on certain minerals and parts of batteries, which is an additional condition for the tax credit that will be applied from next year.
In the September Senate, Georgia State Senator Rafael Warnock, a Democrat, proposed the same amendment. Georgia is where Hyundai Motor held a groundbreaking ceremony for “Hyundai Motor Group Meta Plant America,” an electric vehicle plant on the 25th of last month, and there is an existing manufacturing plant in Alabama.
The fact that both the House and House of Representatives have proposed the amendment to the IRA is significant in that both the House and the Senate have provided leverage to persuade the amendment to pass the three-year grace period during the ” session of the lame duck “, which refers to the period before the formation of a new parliament after the mid-term elections. In the House of Commons, bills are usually debated first and then transferred to the Senate.
Although the South Korean government has proposed a three-year grace period for the poisoning clause to garner public opinion for the U.S. Treasury Department’s enactment of enforcement rules, there are many assessments that it is a stepping stone. launch to arouse public opinion. As US Treasury Secretary Janet Yellen recently affirmed the principle of “do what the law says,” reforming the IRA law is a fundamental solution.
In addition to persuading the US Congress to change the law, the next best thing is being pursued. A representative example is the government’s request to recognize that even if only part of the parts are assembled in the United States, it will be recognized as “the final assembly in North America”. However, there is an additional burden on the company for parts transport and assembly costs.
Regarding the collection of further advice on the subsidy for “green commercial vehicles” conducted separately by the US Treasury, the GOK has requested that “rental cars and short-term rental vehicles be included in the commercial scope” . Unlike general electric vehicles, commercial vehicles can receive an unconditional tax credit as “final assembly in North America”, so this is about 15-20% of the sales volume of general electric vehicles, but the intention is to circumvent the measures.
According to public opinion gathering data from the Ministry of Finance, the American International Automobile Dealers Association (AIADA), which employs 543,000 people, said: “(With the toxic IRA clause) relations with business partners such as Korea, Japan, European Union (EU) and UK are at risk Laws that do not reflect this relationship and the reality of the US market can reduce sales of green vehicles and delay the switch to electric vehicles in the long run ”.
Correspondent Lee Gyeong-ju, Washington
