Senate officials say new limits for EV tax credit claims can be in Dems tax bill

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Senate officials say new limits for EV tax credit claims can be in Dems tax bill

A spokeswoman for the Senate's tax-writing committee said that new limits for claim of the electric-vehicle tax credit can be in Democrats tax and spending bill after the Senate's budget rules are determined to be in compliance with the chamber's budget rules.

The provision, which Ford Motor Co. and General Motors Co. lobbied to change, includes prohibitions on batteries and critical minerals that are processed in China and other foreign entities of concern, which could render consumer credit useless for years to come.

Senator Joe Manchin, who railed against the incentive for months, dismissed it as ludicrous because of those stipulations and other limits on who qualifies for the $7,500 per-vehicle tax credit. His support for the broader package is necessary in the face of the united Republican opposition in the 50 -- 50 Senate.

The legislation would impose new limits on vehicle prices and buyers income that were seen as a threat to its use, at the behest of Manchin.

Senator Tom Carper, chairman of the Senate Environment and Public Works Committee, said Saturday that he had a first-time fee on the excess emissions of methane from the oil and gas industry. Fees for leaks of the potent global warming gas from oil and gas wells, pipelines and an array of other infrastructure would rise to as much as $1,500 a ton in 2026 for some operators.

Read more: Carmakers Blitz Congress to Fix EV Tax Credit They Can't Use

The legislation called the Inflation Reduction Act, which Senate leaders plan to bring to the floor on Saturday, lifts a 200,000 vehicle per manufacturer cap, which is a win for automakers such as Toyota Motor Corp. and Tesla Inc. who have reached that limit.

Under Senate rules governing the fast-track budget procedure that Democrats are using to advance their climate spending and tax bill, provisions that are found to be incidental or extraneous to the federal budget can be challenged. Those that don't meet the test must be removed or modified.

A bill to tie the value of clean-energy tax credits to criteria such as paying workers prevailing wages had been seen as ripe for a Byrd Rule challenge, but survived, said Ashley Schapitl, a spokeswoman for the Senate Finance Committee.

Schapitl said that we are moving forward on the clean energy tax package with no Byrd Rule changes.

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