Overview
On December 30, 2022, Tax Notes quoted Lisa Zarlenga in a piece titled "White House Offers EU Potential Reprieve on EV Tax Credits." The article discusses the implementation of the requirement for the electric vehicle credit that the critical minerals be extracted in the US or a country with a "free trade agreement" with the US. The term is not defined by the IRA, and the white paper released by Treasury suggests some potential flexibility in its interpretation.
The Treasury and IRS listed other countries outside of the EU as part of those to be included in the proposed definition of a free trade agreement. Zarlenga expressed although the information regarding other countries to be included in the free trade agreement portrays an attempt of flexibility, it is noteworthy that no European countries are explicitly outlined in the statement released by the Treasury.
The full article can be read at Tax Notes (subscription required).
