---
kind: "section"
citation: "29 C.F.R. § 810.300"
title: "29"
number: "810.300"
heading: "High-wage assembly expenditures credit."
url: "https://uscodex.org/cfr/29/810.300"
---

# §810.300. High-wage assembly expenditures credit.

- (a) A producer may receive a single credit of five percent towards the total LVC requirement if it demonstrates any one of the following:
  - (1) Operation of (or a long term contract with) a “high-wage” engine assembly plant in North America with a minimum annual production capacity of originating engines;
  - (2) Operation of (or a long term contract with) a “high-wage” transmission assembly plant in North America with a minimum annual production capacity of originating transmissions; or
  - (3) Operation of (or a long term contract with) a “high-wage” advanced battery assembly plant in North America with a minimum annual production capacity of originating advanced battery packs.
- (b) A plant is “high-wage” for purposes of this section if it has an average hourly base wage rate of at least US$16 per hour for the entire plant. The US$16 per hour average hourly base wage rate for high-wage assembly expenditures credit is determined by calculating the average hourly base wage rate in the same manner as detailed in [§ 810.105](/cfr/29/810.105.md).
- (c) Minimum annual production capacity levels are set forth in the USMCA and in guidance issued by CBP and are outside the Department's authority.
- (d) **The definition of “long term contract” is set forth in the Uniform Regulations.**
- (e) If a plant used by a producer to satisfy the material and manufacturing expenditures component of the LVC requirement meets the requirements of [paragraph (a)](#a) of this section, the producer may use that plant to qualify for the high-wage assembly expenditures credit.

## Notes

### Authority

Authority: 19 U.S.C. 1508(b)(4) and 19 U.S.C. 4535(b); 28 U.S.C. 2461 note (Federal Civil Penalties Inflation Adjustment Act of 1990); and Pub. L. 114-74 at sec. 701.

### Source

Source: 85 FR 39810, July 1, 2020, unless otherwise noted.