Biden to sign law on Tuesday cutting most current EV credits

By David Shepardson
(Reuters) - U.S. President Joe Biden is set to sign legislation on Tuesday eliminating EV tax credits for most models, which currently effectively reach up to $7,500.
The White House said Biden will sign legislation Tuesday approving the $430 billion climate, health and tax bill. The bill restructures the existing $7,500 tax credit for new EVs and creates a new $4,000 rebate for used EVs. It also includes tens of billions of dollars in new loans, tax credits, and grant programs for automakers to build cleaner vehicles.
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Many automakers and dealers have worked with customers to create binding written contracts prior to Biden's signing so they are eligible for credit even if they have not received vehicles.
The Alliance for Automotive Innovation, a trade group representing Volkswagen, General Motors Co, Toyota Motor and Ford Motor, among others, said earlier the law would eliminate 70% of 72 electric, plug-in hybrid and fuel cell electric vehicles in the US Make US currently eligible ineligible after Biden signing.
On Jan. 1, when the bill's new income and price caps, as well as battery and critical mineral procurement rules, go into effect, "no one would be eligible for full credit if additional procurement requirements go into effect," the group added added.
A Congressional Budget Office estimate projects that 11,000 new electric vehicles will receive tax credits in 2023, assuming $7,500 per vehicle.
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Audi of America, Kia Corp and Porsche said Friday that buyers of their electric vehicles will lose access to federal tax credits if Biden signs.
Audi said only its Audi plug-in hybrid electric vehicle will retain its existing federal loan through the end of 2022.
The bill makes all electric vehicles assembled outside of North America ineligible for tax credits, drawing criticism from the European Union, South Korea and many automakers.
GM and Tesla previously hit the 200,000 vehicle cap and are no longer eligible, but will be eligible again starting Jan. 1 under tighter procurement and income rules.
(Reporting by David Shepardson; Editing by Marguerita Choy)

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