An about-face in U.S. policy means electric vehicles made in Canada will now qualify for hefty consumer tax credits when sold in the United States, a provision in a proposal that is being lauded by auto industry executives on this side of the border.
Under a previous proposal, the tax credits would have applied only to vehicles assembled in the United States. The policy change averts potential trade disputes and clears a hurdle in the path of Canada’s EV industry.
“It is encouraging to see the new U.S. Senate proposals aimed at boosting EV adoption, including an expansion of the EV tax credit and a used-EV incentive,” said Brian Kingston, head of the Canadian Vehicle Manufacturers’ Association (CVMA), which represents the interests of the Detroit Three in Canada.
“The emphasis on North American-produced vehicles underscores the integrated nature of the automotive industry.”