Washington D.C. — The United States is expanding electric vehicle (EV) incentives from American-only vehicles to vehicles imported from anywhere in North America, paving the way for EV industry growth in the coming years.
Under the Inflation Reduction Act, vehicles such as EVs, hybrids and hydrogen-fueled vehicles may qualify for a US$7,500 tax credit as part of the federal government’s plan to reduce fossil fuel reliance.
While lawmakers have passed this amendment, the Senate and House of Representatives must pass this law before it comes into effect.
According to the CBC, Canada’s International Trade Minister Mary Ng welcomed the change for its impact on the economy. “This is good news for Canadian workers, jobs and our manufacturing industry,” Ng said.
While OEMs and manufacturers stand to gain the most from this change in trade policy, the trickle-down effects shouldn’t be underestimated. Given the ongoing vehicle shortage, EV production may translate to more Canadian sales, and more EVs arriving at your shop for repairs.