P&A Providers & Administrators
MenuMENU
SearchSEARCH

Carmakers Also Give U.S. Flack Over EV Tax Credit

Ford, Toyota join some countries in urging looser EV battery sourcing qualifications.

November 7, 2022
Carmakers Also Give U.S. Flack Over EV Tax Credit

Tax credit qualification requirements limit it to vehicles whose batteries are made with materials mined, processed or recycled in the U.S. or in any of its trade partners.

IMAGE: Getty Images/Aranga87

2 min to read


In addition to flack from some foreign governments, the U.S. is now getting pushback from carmakers on its parameters to qualify for its new electric vehicle tax credit.

The U.S. government has gotten entreaties from the European Union and South Korea about qualification requirements that limit the credit to vehicles whose batteries are made with materials mined, processed or recycled in the U.S. or in any of its trade partners. The credit can total as much as $7,500, and carmakers are eager to see their products qualify for it.

Ad Loading...

The law authorizing the credit, though, excludes battery components that originate in China, Russia or other “foreign entities of concern.” One major motivation behind the exclusion is to help wean the U.S. from Asia-based suppliers, particularly China.

Now some carmakers are joining the chorus of those imploring the U.S. to step back from the restrictions around the tax credit. Ford and Toyota want the terms to be loosened, but some of the brands’ own raw-materials suppliers support the restrictions, Bloomberg reported.

Ford asked the government to exempt domestic suppliers from the foreign-entity qualification and to open up the credit to cars with batteries made by companies outside the U.S. if half or less of their ownerships don’t translate as “foreign entities of concern.”

Toyota asked that Japan be specifically mentioned in the tax credit law as a qualified source.

The Alliance for Automotive Innovation asked that the Internal Revenue Service consider the complexity of the overall vehicle battery supply chain as it works to finalize the law.

Ad Loading...

The tax credit’s battery-sourcing restrictions are scheduled to take effect in 2024.

READ MORE: Biden Willing to Continue EV Talks With South Korea

Originally posted on Auto Dealer Today

More Industry

Kia Niro SUV in gold color parked outdoors
Industryby Hannah MitchellSeptember 1, 2026

Kia Closes Out Summer With a Bang

Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.

Read More →
Outside of Auto Park Ford dealership
Industryby Lauren LawrenceSeptember 1, 2026

Indiana Dealership Changes Hands

A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.

Read More →
Three men standing in front of two classic cars handing off gift.
Industryby Hannah MitchellAugust 25, 2026

Texas Dealership No Longer in the Family

The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.

Read More →
Ad Loading...
Outside of modern car dealership “Genesis of San Bruno
Industryby Lauren LawrenceAugust 25, 2026

Genesis Grows California Presence

The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.

Read More →
Red Honda Civic hybrid sedan on two lane road with green hills in background
Industryby Hannah MitchellAugust 21, 2026

August Auto Sales a Mixed Bag

An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.

Read More →
EV charger inserted into dark-colored car port
Industryby Hannah MitchellAugust 18, 2026

EV Market Humming Along

July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.

Read More →
Ad Loading...
car in background with hand giving a thumbs up in front
Industryby Lauren LawrenceAugust 14, 2026

Auto Loan Delinquency Rates Stabilize

Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.

Read More →
blue sky, yellow and orange rollercoaster with riders going up an incline
Industryby Lauren LawrenceAugust 12, 2026

EV Sales Recover in Q2

The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.

Read More →
Photo of blue Toyota Prius parked next to body of water with city skyline in background
Industryby Hannah MitchellAugust 5, 2026

The Cheapest Hybrids to Fuel

The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.

Read More →
Ad Loading...
white SUV parked in front of a body of water with a gray sky background
Industryby Lauren LawrenceAugust 5, 2026

Hybrids and SUVs Gaining Ground

The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.

Read More →