Manchin expects Treasury delay in limiting EV tax credits

Sen. Joe Manchin (DW.Va.) on Wednesday is introducing legislation aimed at eliminating delays in adding new limits to the consumer tax credit for electric vehicles.

Of the law is hoping for a change by the Ministry of Finance in December to temporarily delay the order – the intended to act as a deterrent for consumers want to get a federal grant for their electric car.

Manchin’s proposal is unlikely to pass, since it requires the signature of President Biden, but this is the latest statement in the conflicts of the senator in West Virginia with the administration.

The Democrats’ climate, tax and health care laws expanded the tax credit for electric vehicles – allowing consumers to receive up to $7,500 divided into two federal credits for a new vehicle.

But, it also came with new provisions.

As of earlier this year, 50 percent of the cost of a vehicle’s battery components needed to be manufactured or assembled in North America in order to qualify for a $3,750 credit.

As of this year, 40 percent of the value of the minerals in car tires needs to be mined or processed in countries with which the US has a trade agreement in order to obtain the another $3,750. Instead of being mined or produced in these countries, the minerals can be recycled in North America to meet secondary demand.

However, in December, the Ministry of Finance late deadlinePushed away until March and drew ire from Manchin.

The law in question, known as the Inflation Reduction Act, states that the restrictions will be effective if the Ministry of Finance provides guidelines for their implementation, which must happen “not more on December 31.” But, the department said that the guide was not ready, causing the delay.

In a written statement about his new legislation, Manchin called the Treasury Department’s actions “unacceptable.”

“It is unacceptable that the US Treasury has not been able to provide updated guidelines for the 30D electronic vehicle tax return and continues to receive the full $7,500 without meeting all the clear requirements included in the Depreciation Act,” he said.

“The IRA is first and foremost an energy protectionist, and the EV tax was designed to grow manufacturing and reduce our dependence on foreign supply chains for the precious minerals we need to produce.” EV batteries,” he added.

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