Sen. Joe Manchin (D-W.Va.) said a new Biden administration ruling on electric vehicle tax credits provisions in the 2022 Inflation Reduction Act (IRA) was a significant deviation from what he believed was the intent of the law when he voted for it last summer.
A provision of the Inflation Reduction Act allowed for up to $7,500 in tax credits for electric vehicles that meet certain supply chain criteria. President Joe Biden’s administration supported the IRA and the legislation passed last year after Democratic lawmakers reached an agreement with the centrist Manchin over certain provisions of the bill, such as the supply chain requirements for electric vehicles. In December, however, Biden’s Treasury Department delayed implementation of the electric vehicle tax credit system until it could prepare guidance for how supply chain requirements would be enforced.
“The guidance released by the Department of the Treasury completely ignores the intent of the Inflation Reduction Act,” Manchin said. “It is horrific that the Administration continues to ignore the purpose of the law which is to bring manufacturing back to America and ensure we have reliable and secure supply chains. American tax dollars should not be used to support manufacturing jobs overseas.
“It is a pathetic excuse to spend more taxpayer dollars as quickly as possible and further cedes control to the Chinese Communist Party in the process. The guidance includes a 60-day comment period and I ask for every American to comment. My comment is simple: stop this now—just follow the law,” Manchin added.
The senator did not specify the portions of the Treasury Department ruling with which he disagreed.
NTD News reached out to Manchin’s office for further comment but did not receive a response before this article was published.
It remains unclear whether Manchin and the Biden administration have communicated since the issuance of the electric vehicle tax credit guidance.
Auto Trade Group Sees Limits on Tax Credits
While Manchin said the Treasury Department’s guidance misses the intent of the IRA to incentivize domestic electric vehicle production, some automakers believe the guidance will actually limit the tax credit eligibility of certain electric vehicle models.Bozella indicated that he was uncertain as to how many electric vehicle models would actually qualify for the full $7,500 in tax credits, but said the guidance would only allow for a few of the 91 EV models currently for sale.
“Some EVs will certainly qualify for a partial credit,” Bozella said. “Given the constraints of the legislation, Treasury’s done as well as it could to produce rules that meet the statute and reflect the current market.”