Audi is the latest automaker looking to shift its strategy after the historic Inflation Reduction Act passed in August. The Inflation Reduction Act provides tax credits for buying electric vehicles in the US. If you buy a new EV, you may be eligible for a $7,500 tax credit or $4,000 for used ones.

However, for a model to be eligible, it must meet strict battery sourcing and manufacturing requirements. Most battery components must be sourced from North America, while final assembly must also occur in North America or with US free trade partners. In an interview with Automotive News, Audi’s chief technical officer, Oliver Hoffman, said the IRA bill will have a “huge impact” on its North American strategy as the automaker considers building its first US EV plant.

According to the interview with Automotive News, Audi EVs may eventually qualify for the federal tax credit. Hoffman, at Audi’s design center in Malibu, California, stated the automaker is looking for opportunities to build that brand, including potentially expanding its manufacturing capabilities in the US, adding:

"And now we are on the way, significantly as the rules changed, and as you know, there is big spending of the government for EVs, with special circumstances, and we are looking forward to how we can meet these requirements. For us, we have big opportunities within the group to make this happen, with our platform spreading strategies, this is a big opportunity for us. And we will look where we want to produce our cars in the future."

Audi’s CTO says he and other Audi higher-ups are “really impressed” at how electric vehicles are growing in the US, adding a decision on whether to build an EV plant in the US could come in 2023.