USTR Asks for Comments on IRA Tax Credits in Preparation for WTO Case
With a dispute panel about to form at the World Trade Organization over China's complaints that Inflation Reduction Act tax provisions violate nondiscrimination principles (see 2403260036), the Office of the U.S. Trade Representative is asking for comments on either the policies or China's assertions.
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China is challenging the consumer tax credits for electric vehicles, which require North American assembly, a certain percentage of North American content in critical minerals and battery components, and bar credits for batteries made with Chinese components or critical minerals, with few exceptions (see 2312010005). The foreign entity of concern rules also bar the use of battery components made in other countries, if a Chinese company is the manufacturer, or even if there is 25% or more Chinese government ownership in the company.
It is also challenging tax credits for renewable and nuclear energy production, renewable energy products and utility scale battery installations, because those tax credits are more generous if developers buy domestic solar panels, wind turbines, batteries or other products.
In a Federal Register notice scheduled to be published Aug. 27, USTR asks for comments to be submitted at regulations.gov, docket number USTR-2024-0014, and says it prefers Microsoft Word or Adobe Acrobat (.pdf) attachments submitted with those comments. For best consideration, it asks that the comments be submitted by Sept. 26.