A bill has been submitted to the U.S. Senate seeking to impose a grace period for electric vehicles made outside of North America allowing them to qualify for tax incentives under the U.S. Inflation Reduction Act(IRA).
The bill was introduced on Thursday by Senator Raphael Warnock of the U.S. state of Georgia, where Hyundai Motor has pledged to build an EV plant by 2025.
The bill would defer the battery-sourcing provision of the act until 2025, and its final assembly requirement until 2026, ensuring that Hyundai will not lose out on benefits under the IRA.
According to the new law, EVs must be assembled in North America or meet a percentage requirement for battery component sourcing in order to qualify for a tax credit of up to 75-hundred dollars.
Seoul has been constantly pressing U.S. politicians and government officials on concerns that South Korean EV manufacturers like Hyundai Motor and Kia are unfairly excluded from the tax credit.