Ford Authority

Ford Backed Lobby Group Asks For Clarity On IRA Tax Credits

The Inflation Reduction Act of 2022 (IRA) has thus far received considerable praise from Ford CEO Jim Farley, who has said that its overhauled EV tax credit will be highly beneficial for the automaker, its partners, and its commercial customers, in particular, who have thus far been more receptive to EVs than retail customers. However, Ford also recently called for change in terms of the bill’s stipulations on where EV battery raw materials are sourced from. Now, Ford-backed lobby group Alliance for Automotive Innovation (AAI) is asking for further clarity on these new IRA tax credits in terms of how automakers can meet eligibility constraints, according to Automotive News.

“As much as automakers and policymakers would like this transition to happen faster, increasing access to critical raw materials, expanding manufacturing capacity and broadening our domestic supply chains will not happen overnight,” AAI stated in comments recently filed with the U.S. Treasury Department. “Restrictive policies that penalize trading partners as well as U.S. consumers from the full breadth of clean vehicles sold will only hinder overall EV adoption and use over the next decade.”

As such, AAI has asked the Treasury to develop a centralized portal by the first of the year that clearly conveys consumer and vehicle eligibility in regards to the new IRA tax credits. It also asked the agency “to include arrangements, including plurilateral agreements, where the U.S. and a foreign economy agree to at least some reciprocal free market access, including government procurement, even if the agreement was not labeled a ‘free trade agreement.’ ”

In addition to requesting that the new rule “focus on packs, modules, cells, and electrodes, but…not include materials that are adequately covered by the critical minerals provision,” AAI also asked for clarity on “foreign entity of concern” exclusions and the North American final assembly requirement, echoing FoMoCo’s concerns that it expressed last week.

We’ll have more on the Inflation Reduction Act of 2022 soon, so be sure and subscribe to Ford Authority for ongoing Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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  1. Joe

    The well off have been buying EVs for a few years now. They take the tax credit and flip it when their next one on order comes in. The people who can never afford them or fit their family in the small ones are paying for the rich.

  2. RWFA

    In B4 the “grassroots boycott” idiot shows up.

    As for the two poor guys above, they apparently have no clue how Public tech incubation works nor what past examples of that have done to make their lives better.

    Technically illiterate, history ignorant and short sighted is a sad lens through which to view the world.

    1. Will

      You show your how ignorant you are complaing about 2 people that you don’t know, neither one talked about a boycott. Just the facts on how slow the adoption rate will be, how overpriced they have become, taxpayers money used to bribe buyers so they can flip them. Go on Bring a Trailer and there are brand new EVs with no miles sold there every week. Go on FB on Mach E pages and see how many are being flipped. I hope you get help soon.

      1. RWFA

        I’m just fine, but please work on improving your reading comprehension.

        In B4 literally means “in before” as opposed to I’m strictly replying to those whose comments preceded mine.

        Again, when not incubated and/or accelerated by government investment, tech adoption usually begins in products with higher price points but uptake is slower as a result.

        Regardless of that flipping, nobody is being forced to buy a flipped vehicle. As for the newer tax credit incentives, they are available, somewhat lower level than the new unit tax credits, to folks buying a used EV too.

  3. John

    Let’s be honest. This is just another use of my tax money to reward the unions period. If it wasn’t then why is the largest maker of EVs in America exempt?

    1. RWFA

      Review your facts.

      Tesla is not exempt.


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