Ford is urging the Treasury Department to ease restrictions placed on electric car parts sourced from China and other “entities of concern” to ensure more of its vehicles can qualify for the consumer tax credits included in the Democrats’ massive climate spending bill, Reuters reported Friday.
The Democrats’ $430 billion climate package, which President Joe Biden signed into law in August, prevents the $7,500 consumer tax credits from applying to new electric vehicles (EVs) if their battery materials were produced or assembled by a “foreign entity of concern” such as China. Ford is claiming that the restrictions, which were aimed at taking EV supply chains out of Chinese hands, are too strict and will not allow enough consumers to reap the benefits of the tax credit, according to Reuters.
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