EU and US discussing an exemption that would include EVs from European members in US tax credits
The European Union has asked the United States to include EVs, batteries, and other sustainable products sold on US soil in federal tax credits, similar to benefits it currently offers its North American neighbors. According to a recent report, the US and EU are in discussions about what’s possible.
A large prompter in the US reaching a critical mass point of EV adoption has been the federal and state tax credits in place for electric vehicles and their charging infrastructure. Depending on the vehicle, a person’s filing status, and annual income, US taxpayers can qualify for up to $7,500 back at the end of the fiscal year, not to mention additional exemptions available at the state level.
US automakers like Tesla and GM surpassed the 200,000 unit threshold for EV sales years ago, thus disqualifying them from tax credits, while plenty of EVs from European automakers still qualified. Since taking office, the Biden administration has been adamant about expanding electrification and electrical grid support throughout the US, including federal fleets, school buses, and passenger mobility.
This past August, President Biden signed what could be one of the most noteworthy pieces of legislation in his presidential legacy with the Inflation Reduction Act (IRA). The bill extends federal tax credits through 2032, slashes the 200K unit threshold, and promotes North American EV manufacturing.
As one would imagine, European countries and their automakers have been less excited about new tax credit terms under the IRA, including the requirement that the vehicles, their batteries, and the majority of battery components must be built in North America.
Now, those European countries are speaking up and are asking the US to once again include its EVs in the revised tax credits, despite the pro-North American assembly terms.
Could European EVs soon qualify for US tax credits?
Possibly! According to a report from Automotive News Europe, the prospect of European EVs qualifying for tax credits in the US is at least being discussed. Czech trade minister Jozef Sikela said the European Union has asked the US to treat its member’s EVs, batteries, and other charging equipment as it would for Mexico and Canada, qualifying for revised tax credits.
As members of North America sharing a border with the United States, one could argue Mexico and Canada are more incentivized to support US production and commerce and are, thus, worthy of credits. The EU argues otherwise, stating that the Inflation Reduction Act discriminates against European automakers and other manufacturers.
At its core, the revised terms of federal tax credits in the IRA are not necessarily to keep certain countries or automakers out but to promote manufacturing and supply chains in the US and its neighboring countries. The EU’s counter to that argument is that it currently offers the same tax credits for EVs and their materials, regardless if they’re made in the EU or US.
Sikela, whose home country currently holds the rotating presidency of the EU, was part of a recent meeting in Prague between EU trade ministers and US Trade Representative Katherine Tai. Following the meeting, Sikela said there was a willingness on both sides to reach some form of a deal that would qualify European EVs for US tax credits.
To what extent a potential deal may bring EU products remains unclear, but Sikela is already managing expectations:
We are expecting a derogation (in the US IRA) for EU member states – ideally we would like to have the same as Canada and Mexico, but we have to be realistic and see what we can negotiate.
EU Trade Commissioner Valdis Dombrovskis said a task force will meet for the first time this week to assist in solving the issue. He followed up by saying:
We are focusing on a negotiated solution before we move on to other considerations.
The new terms for federal tax credits in the US will kick in on January 1, 2023, and will affect many local automakers as well as those in European countries. More to come on this story as it develops.
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A couple years ago, my wife started a new job as an elementary school principal. It was an exciting milestone, but it also came with a stressful commute. The school isn’t far – just a few kilometers across the city – but during rush hour, taking the bus often meant sitting in gridlock for 45 minutes. Not exactly the best way to start or end a workday.
So we got her an electric bike.
Not just any e-bike, either. She picked out a sleek little folding model called the Rayvolt Exxite XS. It’s light, stylish, easy to ride, and best of all, it doesn’t take up much space at home or at school.
But here’s the kicker: it only goes 25 km/h (15.5 mph). It doesn’t even have a throttle. You have to pedal it, you know, like a neanderthal.
And yet… it’s faster than cars. A lot faster.
Her commute now takes about 10 minutes. Maybe 12 minutes if she catches a few red lights. She zips past long lines of idling cars, breezes down bike lanes, and parks right at the school entrance. No searching for a parking space. No waiting for late buses. No moving so slow that you can clearly see a piece of gum stuck on the road. Just hop on and go.
In raw numbers, her commute time has been cut by more than 75%. Now she’s easily traveling 3-4x faster than a car or bus.
And the only thing that changed was swapping four wheels for two – and ditching the idea that the “faster” vehicle is always the one with more horsepower and an extra few thousand kilos to lug around.
She went with something of a sleek-looking e-bike, but anyone could get the same or better performance from a simple, mass-market e-bike like a $999 Lectric XP4, all for a few months of car payments or nearly a year of bus riding. This isn’t expensive stuff. In fact, it’s cheaper, it saves time, and it’s more fun.
In cities choked with traffic, a modest Class 1 e-bike like hers can be 3–4 times faster than driving. Not because it’s a speed machine (it’s not), but because cars are stuck. Stuck behind other cars. Stuck behind buses. Stuck behind the myth that they’re the only real way to get around.
The bike’s other benefits aren’t lost on her either. She gets a bit of exercise every day to help keep her in shape. She gets fresh air. She gets to actually experience our amazing city instead of watching it go by through a window. And she arrives at school with a smile instead of a headache.
At school, she parks in a guarded area. Back home, she can easily take her bike right up to our apartment in the elevator. It’s no muss, no fuss, easy breezy beautiful e-bike girl.
So yeah, I got my wife an e-bike that’s faster than cars. It didn’t take 1,000 watts or some monster battery pack. It just took rethinking what speed really means in a city.
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The best-selling Mercedes-Benz SUV is going electric, and it’s bringing a new style with it. Mercedes promises the new GLC EV “redefines” the face of the luxury brand. Here’s our first look.
Mercedes previews flashy new face with the GLC EV
We will get our first look at the new electric SUV in a little over a month at the Munich Motor Show. Ahead of its official debut, Mercedes has been hyping the GLC EV up as what could be one of its most important vehicles (EV or gas) to date.
The GLC is already the best-selling Mercedes SUV globally and in the US, but the luxury automaker is promising the electric version will take it to the next level.
“Our new iconic grille is not just a new front for the GLC, it redefines the face of our brand,” according to Gorden Wagener, Mercedes’ chief design boss. Wagener says the new look is “the perfect fusion” of lasting design (and more LED lights) that will be used on upcoming vehicles.
The new electric GLC will be the first to showcase the new face. Mercedes gave us a sneak peek of it on Monday, revealing the revamped grille design.
When you pass by the iconic three-point star, you know it’s a Mercedes-Benz vehicle. For over 100 years, the chrome grille has been the face of nearly every model.
Although it’s been updated and evolved, this is its most extreme redesign yet. The new grille is bold and wide. Again, you won’t be missing this one when it drives by.
After adopting a more “EV-look” with the closed-off grille in its first-gen electric vehicles, Mercedes is reverting to a more traditional luxury design, similar to that of Cadillac or BMW, with a chunky, wide chrome grille. An illuminated version will also be available, featuring 942 backlit dots.
Mercedes says the optional high-tech pixel design can even be animated to bring the electric GLC to life.” The iconic star and border of the panel are also illuminated.
The GLC EV is the first of a new family of vehicles that will feature its advanced new MB.OS supercomputer alongside the updated design.
Mercedes is also promising an optional new MBUX HYPERSCREEN, “elevates the interior of the new GLC in a way never seen before.” We will get our first official look at the new Mercedes GLC EV on September 7 at the Munich Motor Show.
The luxury automaker says the event will mark the beginning of a new era with its largest product launch yet. In addition to the electric GLC debut, Mercedes will hold the world premiere for the new CLA EV, CLA Shooting Brake, and Concept AMG GT XX. Check back soon for more updates leading up to the event.
What do you think of the new face of Mercedes? Are you a fan? Or should the luxury brand go back to the chalkboard again? Let us know your thoughts in the comments.
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Costco’s EV Marketplace hopes to guide its members through every step of their electrification journey with helpful articles, insights, and resources. The online resource gas just hit its six-month milestone, and to celebrate, they’re rolling out fresh deals on three new Volvo EVs.
SKIP THE STORY: take me to the deals.
“It’s normal to have questions when you’re considering an EV,” reads Costco’s Marketplace copy. “Are EVs safe? How long will my EV last? Can EVs handle harsh weather? We’ve answered these questions and more so you can have peace of mind about living the EV life.”
That’s how it starts, and the Marketplace, true to its word, continues with informational articles about EV incentives (Money Matters), charging FAQs (All About Charging), the differences between hybrids, PHEVS, and EREVs (Hybrids and PHEVs), and Expert Perspectives on topics like autonomous driving and buying usd EVs.
It’s pretty basic stuff, and you’d probably get a lot more nuanced and useful real-world takes on the hows and whys of fitting an EV into your everyday life by reading the comments on Electrek, but the Costco site passes the Jo Borrás Father-In-Law Test™: it’s easy, accessible, and does everything it can to avoid taking any sort of environmental or political stand.
And, best of all, it neatly organizes all the different GM EVs eligible for Costco member discounts. And, now through September, that list includes a (returning) trio of all-electric Volvo models: the EX90, EX40, and Electrek EV of the year for 2024, the Volvo EX30.
Check out the deals, below, and click on the Make/Model names to find more discounts and deals on new EVs in inventory near you.
Costco members only Volvo deals
- Volvo EX90
$ 1,500 incentive for Gold Star & Business members
$ 2,000 incentive for Executive members - Volvo EX40
$ 1,000 incentive for Gold Star & Business members
$ 1,250 incentive for Executive members - Volvo EX30
$ 1,000 incentive for Gold Star & Business members
$ 1,250 incentive for Executive members
Costco members only GM deals
- Chevrolet Blazer EV
$ 1,000 incentive for Gold Star & Business members
$ 1,250 incentive for Executive members - Chevrolet Equinox EV
$ 1,000 incentive for Gold Star & Business members
$ 1,250 incentive for Executive members - Chevrolet Silverado EV
$ 1,000 incentive for Gold Star & Business members
$ 1,250 incentive for Executive members - GMC Sierra EV
$ 1,000 incentive for Gold Star & Business members
$ 1,250 incentive for Executive members - GMC Hummer EV
$ 1,000 incentive for Gold Star & Business members
$ 1,250 incentive for Executive members - Cadillac OPTIQ
$ 1,000 incentive for Gold Star & Business members
$ 1,250 incentive for Executive members - Cadillac VISTIQ
$ 1,000 incentive for Gold Star & Business members
$ 1,250 incentive for Executive members - Cadillac ESCALADE IQ
$ 1,000 incentive for Gold Star & Business members
$ 1,250 incentive for Executive members
Brightdrop Costco member deal
Finally, I absolutely must stop and highlight what might be the absolute best deals going. With 272 miles of range and more room inside its walls than your college dorm, GM’s Chevy Brightdrop electric van is one of the best commercial EVs you can buy. As a Costco Executive member, you can get one for yourself or your business with an absolutely incredible $31,500 discount. (!)
You can check out Costco’s EV Marketplace for yourself at this link, then let us know what you think of it as a resource – and if you’d recommend it to your in-laws – in the comments.
SOURCE: Costco; images via Volvo, GM.
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