Automakers, South Korea urge U.S. to tap commercial EV tax credit

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Automakers, South Korea urge U.S. to tap commercial EV tax credit
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Many automakers and the South Korean government are urging the Biden administration to tap a commercial electric vehicle tax credit to boost consumer EV access, a plan that could help ease concerns over a climate bill approved in Congress.

The $430 billion U.S. Inflation Reduction Act passed in August ended $7,500 consumer tax credits for electric vehicles assembled outside North America, sparking anger from South Korea, the European Union, Japan and others.

Some automakers say a lesser noticed IRA provision for "commercial clean vehicles" could be used to boost EV manufacturers and address foreign concerns.

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