On Wednesday, Senator Joe Manchin introduced legislation that will end 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 in a move 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 the clear requirements 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 has introduced the American Vehicle Security Act to direct the department to implement the 30 D new vehicle tax credits for vehicles based on the law, which require compliance with battery and battery material sourcing requirements as of January 1, 2023, according to Manchin, chair of the Senate Energy and Natural Resources Committee.
He said it is shameful that the U.S. relies so heavily on foreign suppliers, particularly China, for the batteries that power our electric vehicles, and that 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 that is necessary for them to take effect would not be ready until March.
The federal government gave up to $7,500 for electric vehicles, allowing consumers to get up to $7,500 in two credits for a new car.
In the Inflation Reduction Act, requirements required that half of the battery components be manufactured or assembled in North America in order to be eligible for a $3,750 credit.