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New federal subsidies and tax credits for electric vehicles and their batteries could help expand the industry in Arizona, where it's been increasing its presence over the past several years.
Driving the news: The Inflation Reduction Act (IRA) that President Biden signed into law on Aug. 16 will open up tens of billions of dollars in subsidies for electric vehicle plants, Axios' Joann Muller reported.
Why it matters: Arizona is home to a number of electric vehicle and battery manufacturing facilities, with others under construction.
What they're saying: "Over the last 17 months, three major electric vehicle manufacturers have broken ground on plants in greater Phoenix, and with continued investment at the local and federal level, we believe that trend will continue," Chris Camacho, president and CEO of the Greater Phoenix Economic Council, tells Axios.
Details: The IRA contains several new or expanded tax credits and subsidies.
Yes, but: To qualify for the consumer tax credits in the law, vehicles and their batteries must meet certain benchmarks for how much of the materials are from North American or U.S. trade partners. It's unclear whether some Arizona-based manufacturing facilities will make the cut.
Between the lines: Due to restrictions on supply chains and vehicle price, some manufacturers say the requirements for the consumer tax credit could actually hurt sales, at least in the short term.
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