Manchin pushes to defer tax credits for electric cars

Manchin pushes to defer tax credits for electric cars

Washington (AFP) Escalating criticism from Democratic Sen. Joe Manchin, on Wednesday he moved to delay new tax breaks for electric cars.which is a key feature of President Joe Biden’s climate law.

Manchin said the guidelines from the Treasury Department allow manufacturers in Europe and other countries to bypass requirements for producing large portions of electric vehicle batteries in North America.

Climate Act, formally known as the Inflation Reduction Act“It is first and foremost a bill for energy security,” Manchin said, adding that the EV tax credits were meant to “grow domestic manufacturing and reduce our reliance on foreign supply chains for the critical minerals needed to produce EV batteries.”

Manchin’s attempt to delay the tax breaks came to light when 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 boost electric vehicles and related infrastructure.

Granholm said sales of electric vehicles have tripled since Biden, a Democrat, took office two years ago. There are now more than 2 million electric vehicles and 100,000 chargers on American roads, she said, with more than $100 billion invested or pledged for electric vehicles and their supply chains, including batteries.

While batteries and components have long been manufactured in China, “we’re going to bring that manufacturing back home,” Granholm told reporters.

“We’re going to give Americans the chance to drive American cars made by American workers — and that will only get worse when Americans start driving these vehicles and realizing how awesome they are,” she said. “Demand is going to skyrocket. We predict that by 2030, half of the cars sold in the US will be electric.”

Granholm and the White House declined to comment on Manchin’s bill, but the West Virginia lawmaker’s action is unlikely to gain traction in the Senate, where Democrats hold a slim majority and have shown no inclination to reopen a bill they just passed to the party. Voting line. During the midterm campaign, Republicans have criticized Biden and other Democrats In support of electric vehicles, citing the relatively high costs and batteries made in China.

Tax credits Up to $7,500 per vehicle to stimulate electric vehicle sales and local production of vehicles and batteries while reducing global warming greenhouse gas emissions. European and Asian allies, including French President Emmanuel Macron, have criticized the rules as unfair to foreign manufacturers.

And while Macron praised Biden’s efforts to curb climate change, he said during a visit to Washington that subsidies in the new law could be an enormous problem for European companies.

Biden has acknowledged that there are “holes” in the legislation But he said “there are adjustments we can make” to satisfy allies.

Manchin’s bill follows the Treasury Department’s decision to delay rules on battery and metal contents until March, while allowing the rest of the program to take effect on Jan. 1. t comply with the battery requirements.

“The United States is the birthplace of Henry Ford, who revolutionized the auto industry,” Manchin said, calling it “a shame that we are so dependent 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 critical vote in passing the climate law, which was adopted without the support of any Republicans in the House or Senate. He has said the waivers approved by the Treasury Department — including those that allow tax breaks for electric vehicles purchased for commercial use, such as rental or ride-sharing, even if they are foreign-made — undermine the law’s intent to reduce US dependence on foreign countries, including Liabilities, job creation in the United States.

At the World Economic Forum in Davos, Switzerland, last week, Manchin said he did not realize the European Union did not have a free trade agreement with the United States when Democrats passed the electric car restrictions. He told reporters at the Capitol this week that European countries should reconsider their own policies to promote clean energy, and the United States can work on a trade deal.

“Whether they realize it or not, they need to get this together and let’s get a free trade agreement,” Manchin said.

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

John Bozzella, president of the Alliance for Automotive Innovation, an industry trade group, said Manchin’s bill would only add confusion to an already complex tax credit for electric vehicles that many drivers — and even some auto dealers — don’t fully understand.

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

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Follow AP coverage of electric vehicles at https://apnews.com/hub/electric-vehicles.

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