Car loans in the United States will cover cars from Mexico and Canada.

with approval this sunday United States Senate The Inflation Reduction Act would allow the use of US auto credits for the purchase of cars produced in Mexico and Canada.

The bill is expected to be approved by Parliament in the coming days. lok sabhaWhere the Democratic Party is in the majority.

The new initiative replaced one introduced by President Joe Biden’s administration last year that included tax credits for electric vehicles and was discriminatory. Products from Mexico and Canada,

The previous initiative would increase the credit for electric vehicles to $12,500 per vehicle, including $4,500 for vehicles made by the union’s plant and $500 for batteries made in the United States. Vehicles must be assembled in the United States in 2027 to receive any credit.

Now the new initiative proposes that the final assembly be North AmericaWhile the retail price should be under $55,000 for cars and under $80,000 for trucks and SUVs.

Another requirement is that battery materials must come from the United States or free trade partners, with a gradual start in 2024.

The initiative approved by the Senate on Sunday establishes an extension of the $7,500 federal tax credit for electric vehicles and eliminates the limit for automakers to qualify for the credit, which currently stands at 200,000 vehicles .

But now also introduced various requirements that make Car manufacturer Confirm that 70% of electric vehicles (EVs) will not be eligible for the PHEV (plug-in hybrid vehicle) credit.

There are 72 electric vehicle models currently available for purchase in the United States, including battery electric, plug-in hybrid and fuel cell electric vehicles, said John Bozzella, CEO of the Alliance for Automotive Innovation, a business group that includes General Motors, Toyota and Ford. as members in the declaration.

“If the bill passes, 70% of these electric vehicles will be immediately ineligible and none will be entitled to full credit once the additional supply requirements take effect. Zero,” he said .

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