(TargetLiberty.org) – Volkswagen could help deliver a major victory for President Joe Biden and his landmark Inflation Reduction Act (IRA). If the automaker decides to set up a battery plant in the United States, then they could help prove that the IRA’s $437 billion price tag was worth it.
Reuters reported on Wednesday that Volkswagen was considering setting up a battery plant in the U.S. because the IRA would allow it to receive $10 billion in subsidies. Currently, the company is waiting for Europe to respond to the IRA before deciding about the location of its new plant. If they do decide to set it up in the United States it could help increase the number of jobs available to American workers and it could help increase the interest that foreign companies have in moving their manufacturing to the U.S.
GOP Senator Mitt Romney of Utah, a member of the Committee on Foreign Relations, said regarding the reports that he was “glad” to see that Volkswagen was considering making a major investment in the U.S.
The new law is focused on bringing investment in domestic energy production through tax incentives for businesses that are focusing on clean energy. However, the IRA has received a lot of criticism over the $369 billion that it has allocated toward climate and green energy policies.
The legislation has also led to worries within the European Union, as many officials are worried that the landmark federal legislation could incentivize producers to move their business to the U.S. which could take away investments from the 27-member bloc.
Copyright 2023, TargetLiberty.org
