US Tax Credit Could Rev Up Electric Vehicle Production In Canada

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NEW YORK, Aug. 4, 2022 /PRNewswire/ -- Canadian car makers breathed a sigh of relief last week when US lawmakers decided to scrap part of a large incentive package for electric vehicles (EVs) that originally excluded EVs assembled in Canada from a proposed $7,500 US consumer tax credit for "clean vehicles." The credit, which includes battery-electric, plug-in hybrids and hydrogen fuel cell, is part of a $369 billion proposed new spending on climate-related initiatives included in the Inflation Reduction Act. US Senators Chuck Schumer and Joe Manchin, both Democrats, reached an agreement late Wednesday to include the credit and a range of other tax and investment measures. Those measures aim at growing the clean energy sector and spurring the adoption of electric vehicles in the bill, which hopes to revive a struggling economy to emerge from inflation below 9.1%. This is good news for EV companies like EV Technology Group (NEO:EVTG) (OTCQB:EVTGF), Tesla (NASDAQ:TSLA), Nio (NYSE:NIO), Arrival (NASDAQ:ARVL), and ElectraMeccanica (NASDAQ:SOLO).