[Automotive News] Three House lawmakers have joined a push in the Senate to delay certain sourcing and manufacturing requirements in the Inflation Reduction Act's tax credit for consumers buying new electric vehicles. Sen. Raphael Warnock, D-Ga., introduced a bill — known as the Affordable Electric Vehicles for America Act — in September that would create a longer phase-in for the tax credit's North American final assembly requirement as well as its critical mineral and battery component provisions.
U.S. Reps. Terri Sewell of Alabama, Emanuel Cleaver of Missouri and Eric Swalwell of California — all Democrats who won midterm reelections in their states — introduced a companion bill this month. Sewell said the bill is a "win-win for Alabama, ensuring that automakers and car buyers alike can take advantage of these tax credits immediately."
Under the newly introduced legislation, only EVs sold after Dec. 31, 2025, would have to be built in North America. Restrictions on critical minerals sourcing and the domestic manufacturing of battery components also would be delayed.
In comments filed to the Treasury this month, Hyundai urged the department to provide transition relief for the North American assembly requirement during the period that EV and battery manufacturing plants are under construction.
"This transition period would allow EVs sold by such companies during the construction period to be deemed eligible and compliant with the North America final assembly requirement," the South Korean automaker said in the comments.
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