U.s. Tax Credits Can Be Beneficial To Global Automakers; But Europe Is Seeking More

The European Union and the USA have been at odds over USA’s Inflation Reduction Act approved by USA legislatures in August. This act includes over $300 billion spending on energy and climate policies.

The EU is not completely happy with recent introduction of concessions from USA on its green energy subsidies. The EU is urging the USA for adding more benefits to European car manufacturers.

The leaders from EU have publicly expressed their opinion over the climate bill. This bill offers unprecedented tax credits to people who are purchasing electric car vehicles that are made in North America. European companies who look for sell in the American market see this move by USA as challenging.

A European official expressed, “There is still a chance to talk since the legislation is not yet finalized.”

President Joe Biden expressed in December, “We can work out some of the differences that exist, I’m confident.”

A special taskforce is set between both to meet again next week and discuss about this bill.