Tax credits for electric vehicles are a big concern, Hyundai officials say

Published: Sep. 26, 2022 at 5:31 PM EDT|Updated: Sep. 26, 2022 at 6:28 PM EDT
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SAVANNAH, Ga. (WTOC) - Savannah economic leaders say new federal tax credits for electric vehicles are leaving Hyundai officials concerned.

If you’ve driven along I-16 in Bryan County recently you may have noticed this massive land clearing effort.

That’s where Hyundai’s electric vehicle plant is set to build. And economic leaders say work is moving along.

In just a matter of months thousands of acres have been cleared of trees.

Crews now preparing for construction of Hyundai’s new electric vehicle and battery processing plant.

It’s a project leaders from the Savannah Economic Development Authority say is on schedule.

“They’re starting to grade and do those things that are necessary. But when you go out there and see what’s happened since August 1, it’s truly remarkable,” President/CEO, Savannah Economic Development Authority Trip Tollison said.

SEDA officials say there are now concerns at Hyundai over tax credits included in the recently passed Inflation Reduction Act.

Under the new law electric vehicles must have final assembly in North America to be eligible for the tax credit.

While any electric cars made at the mega site would qualify for the credit, none of Hyundai Motor Group’s current electric car brands are eligible since they’re assembled overseas.

“The tax credits are a big concern to the company, related to the Inflation Reduction Act. There are a lot of conversations going on with the folks in Washington D.C. to see if the administration and obviously the House and Senate can provide a fix to that,” Tollison said.

Despite the concerns, Tollison says work is still on track at the site as crews are set to also start work on sewer and wastewater systems at the plant.

“There’s a sewer portion that goes back towards the City of Savannah system. And then the overall wastewater treatment facility that’s being built for the long term plans of the project, that’ll start construction soon.”

Tollison says that the long-term wastewater treatment site is set to be ready by the first quarter of 2025.

Tollison also teased new updates on the construction project.

He says those should be coming out within the next few weeks.

We reached out to Hyundai officials but did not hear back. SEDA says the plant is scheduled to be ready by early 2025.