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[Alpha Biz=(Chicago) Reporter Paul Lee] South Korean battery, solar and wind companies operating in the U.S., including LG Energy Solutions and Hanwha Q CELLS, will receive AMPC benefits from the U.S. government from this year to 2032 under the Inflation Reduction Act (IRA).
The U.S. Treasury Department announced the AMPC provisional guidance on the 14th (local time). It specifies the situation and requirements for tax deduction.
According to Guidance, a tax deduction of $ 35 per kWh for batteries and $ 10 per kWh for modules will be given. Solar components are subject to tax deductions of $ 3 per kilogram for polysilicon, $ 12 per square meter for wafers, and 4 cents and 7 cents per W for cells and modules, respectively.
Wind power parts will receive tax deductions of 2 cents per W for blades, 5 cents per W for Nasel, and 3 cents per W for towers. Key minerals receive tax deductions for 10% of production costs, including labor, electricity, and storage costs.
The tax deduction will apply from this year to 2032 for products that have been produced and sold since Dec. 31 last year.
The government expected that domestic companies' uncertainties will be reduced, while related companies such as batteries will benefit greatly. In particular, it is expected to be a "sweet rain" for Korean battery-based companies that were unable to expand their business due to the "rise" of Chinese companies due to the inclusion of separators and electrolytes in the list of products that can receive AMPC.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
