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Tuesday, July 23, 2024

U.S. guideline on IRA to benefit Korean battery, renewables companies

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U.S. Department of the Treasury's release of guideline under the Inflation Reduction Act (IRA) [SCREEN CAPTURE]
U.S. Department of the Treasury’s release of guideline under the Inflation Reduction Act (IRA) [SCREEN CAPTURE]

The U.S. tentative guideline on its tax cut eligibility under the Inflation Reduction Act (IRA) is likely to benefit Korea’s electric vehicle battery, solar panel and wind power manufacturers among others, Seoul’s Industry Ministry said Friday, easing lingering uncertainties.

The assessment came after the U.S. Treasury Department unveiled a preliminary on detailed eligibility to win tax credits under the IRA on Thursday.

“(The guideline) has lifted uncertainties on the eligibility of tax cuts and their scope on businesses producing cutting-edge products within the United States,” the Korean industry ministry said.

The ministry noted that Korean battery makers and solar panel producers with production lines in the U.S. are expected to “benefit significantly” through the release of the guideline.

“Korea has been coordinating with the U.S. government to reflect the local businesses’ opinion on the IRA,” the ministry said. “We plan to expand communication with industries and engage in talks with the U.S. to maximize the benefit on local firms while easing their burdens.”

Meanwhile, the U.S. Treasury Department plans to post the guidance for a 60-day period to gather public opinion and tentatively hold a hearing in late February.

BY PARK EUN-JEE, YONHAP [park.eunjee@joongang.co.kr]