Manchin seeks to delay tax credits for electric vehicles

WASHINGTON (AP) — Increasing criticism of Democratic Sen. Joe Manchin on Wednesday, he delayed new tax credits for electric vehicles.A key feature of President Joe Biden’s landmark climate law.

Manchin said the guidelines issued by the Treasury Department allow manufacturers in Europe and other countries to bypass requirements that a significant portion of EV batteries be made in North America.

The climate law, officially known as the Inflation Reduction Act“This is an energy security bill first and foremost,” Manchin said, adding that the EV tax credits were meant to “promote domestic manufacturing and reduce our dependence on foreign supply chains for critical minerals needed to make EV batteries.”

Manchin’s proposal to delay the tax credits came as Energy Secretary Jennifer Granholm and White House climate adviser Ali Zaidi visited the Washington, D.C., auto show on Wednesday to highlight the administration’s efforts to develop electric vehicles and related infrastructure.

Granholm said electric vehicle sales have tripled since Democrat Biden took office two years ago. He said there are now more than 2 million EVs and 100,000 chargers on US roads, and more than $100 billion has been invested or committed to EVs and their supply chains, including batteries.

Although the batteries and components have long been manufactured in China, “we will bring that manufacturing home,” Granholm told reporters.

“We’re going to give Americans the chance to drive American cars built by American workers — and that’s only going to get harder when Americans start driving these cars and realize how great they are,” he said. “The demand will be very high. We expect that by 2030, half of all cars sold in the United States will be electric.”

Granholm and the White House declined to comment on Manchin’s bill, but the West Virginia lawmaker’s measure is unlikely to gain traction in the Senate, where Democrats hold a slim majority and show no inclination to reopen the bill they passed across the board. – line voting. During the midterm election campaign, Republicans criticized Biden and other Democrats to support electric vehicles, citing their relatively high prices and Chinese-made batteries.

Tax credits The projects, worth up to $7,500 per vehicle, aim to stimulate EV sales and domestic production of vehicles and batteries while reducing planet-warming greenhouse gas emissions. European and Asian allies, including French President Emmanuel Macron, criticized the rules as unfair to foreign manufacturers.

While Macron welcomed Biden’s efforts to curb climate change, he said during a visit to Washington that subsidies in the new law could be a big problem for European companies.

Biden acknowledged the “flaws” in the legislation but he said “there are adjustments we can make” to appease allies.

Manchin’s bill follows the Treasury Department’s decision to delay regulations on battery content and minerals until March, allowing the rest of the program to begin on Jan. 1. t according to battery requirements.

“The United States is the birthplace of Henry Ford, who revolutionized the auto industry,” Manchin said, adding that “it’s a shame that we rely so much on foreign suppliers, especially China, for the batteries that power our electric cars.”

Manchin, chairman of the Senate Energy and Natural Resources Committee, was a key vote in passing the climate bill, which passed without the support of any Republicans in the House or Senate. He said the exemptions approved by the Treasury, including tax breaks for EVs purchased for commercial purposes, such as leases or ride-sharing, even if they are manufactured abroad, reflect the law’s intent to reduce U.S. dependence on foreign countries. it shakes. including enemies and create US jobs.

Last week at the World Economic Forum in Davos, Switzerland, Manchin said he did not understand that the European Union did not have a free trade agreement with the United States when Democrats passed the EU restrictions. He told reporters at the Capitol this week that European countries should rethink their policies to promote clean energy and that the U.S. could work on a trade deal.

“Whether I understand it or not, I hope they come together and we get a free trade agreement,” Manchin said.

Senate Finance Committee Chairman Ron Wyden, D-Ore., said he has no interest in reopening the climate law, which passed more than a year and a half after sometimes contentious negotiations.

John Bozzella, president of the Automotive Innovation Alliance, an industry trade group, said Manchin’s bill would add confusion to an already complicated EV tax credit that many drivers and even some car dealers don’t fully understand.

“We want to make sure we don’t add to the confusion for customers who may already be confused about what qualifies for the tax credit,” Bozzella said, “so I’m not entirely sure what the value of the new legislation is.”


Follow AP’s coverage of electric vehicles at

Source link