U.S. TAX CREDITS TO INCLUDE CANADIAN-MADE EVS

The Democrats’ 725 page 2022 inflation reduction bill, which includes tax credits for new EVs and incentives for used EVs, is now packed with references that apply to North American vehicles, whereas in the previous draft, only those assembled in the United States were eligible. This proposal violated the terms of the U.S.-Mexico-Canada agreement, according to the Canadian government.

Described by Francesco Sorbara, the chair of the federal Liberal auto caucus, as “very constructive and good news for Canada’s automotive manufacturing sector,” the new motion also means greater investment certainty for Canadian mineral and battery projects according to Matthew Fortier, CEO of the Accelerate alliance, since some of the critical battery materials must be “mined or processed in a country with which the U.S. has a free trade agreement” in order for the buyer to take advantage of the full measures.