Georgia Senator Reverend Warnock introduced a new bill that would expand which electric vehicles qualify for a tax credit through the Inflation Reduction Act. The Affordable Electric Vehicles for America Act would give automakers like Hyundai a ?grace period? to build and assemble EVs in North America, allowing them to qualify for the tax credit.
Senator Warnock?s new bill aims to lower the costs of owning an electric vehicle while working with foreign automakers planning to manufacture in the US, notably Georgia.
In August, the historic Inflation Reduction Act (IRA) bill was passed, providing several incentives and rebates to boost the US economy and transition to clean, sustainable energy. Most importantly, the tax credit for electric vehicles provides up to $7,500 for new EVs and $4,000 for used ones.
However, for electric vehicle models to be eligible, they must meet strict battery sourcing requirements and also complete final assembly in North America, disqualifying many models.
Meanwhile, foreign automakers are racing to establish operations in the US and Canada to qualify. Georgia, in particular, has been a hot spot for manufacturing activity.
Hyundai, for example, announced in May it would invest over $5.5 billion to build its first dedicated EV plant in Bryan County, Georgia. Initially, Hyundai aimed to start construction in 2023, yet since the IRA bill passed, the automaker has considered speeding up those plans.
South Korean officials have met with US leaders to address the EV tax credits, working to come to a joint resolution.
Senator Warnock believes he has a resolution with the Affordable Electric Vehicles for America Act. The new legislation would delay the timetable for automakers like Hyundai to meet the specific requirements of the IRA bill, subsequently expanding the EV tax credit.
