Joe Manchin pushes to remove restrictions on EV tax credit

Sen. Joe Manchin introduced legislation that will remove the delay in adding new restrictions to the consumer tax credit for electric vehicles.

The West Virginia Democrat took a shot at the Treasury Department and moved to temporarily delay the stipulations regarding the manufacturing and sourcing of minerals for EV batteries.

The senator said that it is unacceptable that the U.S. Treasury has failed to issue updated guidance for the 30 D electric vehicle tax credits, and continues to make the full $7,500 credits available without meeting all of the requirements included in the Inflation Reduction Act. The Treasury Department did not meet the statutory deadline of December 31, 2022 to release guidance for the 30 D credit, and have created an opportunity to circumvent stringent supply chain requirements included in the IRA. The Senate Energy and Natural Resources Committee, Chairman of the Senate Energy and Natural Resources Committee, said he had introduced the American Vehicle Security Act to direct the department to implement the 30 D new vehicle tax credits for vehicles, which must comply with battery and battery material sourcing requirements as of January 1, 2023.

He said that it is shameful that the U.S. relies so heavily on foreign suppliers for the batteries that power electric vehicles because of the IRA, which is an energy security bill and the EV tax credits were designed to grow domestic manufacturing and reduce our dependence on foreign supply chains for the critical minerals needed to make EV batteries. Manchin said the country could not continue down this path. I said it before, and it bears repeating that we can't have national security without energy security and energy independence. The IRA and the EV tax credits must be implemented according to the intent of the Congressional intent to ensure that the United States is not beholden to countries that don't share our values, he concluded.

The Treasury Department said in December that guidance on implementation would not be ready until March.

The federal government credits for electric vehicles allowed consumers to get up to $7,500 for two credits for a new car, allowing them to get up to $7,500 in two credits.

Stipulations in the Inflation Reduction Act required that half of the battery components be manufactured or assembled in North America in order to be eligible for a $3,750 credit.