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Neutralising the Subsidy Race: US’ IRA and EU’s FSR, IFLR

Friday, January 13, 2023

Partner Christina Renner spoke to IFLR about the EU Foreign Subsidy Regulation (FSR) and how its implementation intersects with the US Inflation Reduction Act of 2022 (IRA).

“In a scenario where a US authority would grant a subsidy to an EU company under the IRA, such subsidy would fall squarely within the scope of application of the FSR,” said Christina.

“Tax credits fall in the category of the foregoing of revenue that is otherwise due. For a tax credit to be subject to scrutiny by the FSR, it has to of course meet the other substantive requirements i.e., be above the minimum threshold and selectively benefit a company or group of companies.”

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