Manchin says Treasury should limit commercial EV tax credit use

[Yo_Mama_Been_Loggin]

(Reuters) - U.S. Senator Joe Manchin, a Democrat who chairs the chamber's energy panel, asked the Treasury Department on Tuesday not to allow a commercial electric vehicle tax credit to be used for consumer leasing, rental cars or ridesharing vehicle sales, rejecting a broad interpretation of the credit.

Reuters first reported last week the push by South Korea and some automakers that asked the Treasury Department to allow use of the commercial electric vehicle tax credit to boost consumer EV access as well as for the purchase of ride share and rental car vehicles.

The $430 billion U.S. Inflation Reduction Act (IRA) passed in August ended $7,500 consumer tax credits for electric vehicles assembled outside North America, angering South Korea, the European Union, Japan and others.

The climate bill also imposes significant battery minerals and component sourcing restrictions, sets income and price caps for qualifying vehicles and seeks to phase out Chinese battery minerals or components. The commercial credit known as "45W" does not, however, have the sourcing restrictions of the consumer credit called "30D."

https://finance.yahoo.com/news/u-senator-manchin-says-treasury-210212078.html

[WiVoter]

1. Why Joe?

I mean WTF?!

[gratuitous]

2. We could pay for this tax credit by ending coal subsidies

How's that grab ya, Senator Yacht?

[Meadowoak]

3. Joe Manchin needs to unload his interests in coal and fossil

Fuel and get on board with EVs.

[Bev54]

4. Perhaps the tax credit could be used for all EV's except Teslas, that would limit it.

[Just A Box Of Rain]

5. The OP is very misleading.

Manchin is pushing to maintain the requirement that in order to qualify for $7,500 per vehicle in tax credits under the Inflation Reduction Act that EVs must be domestically produced, assembled in North America, and that they must utilize batteries made with minerals from friendly trading partners to get full credit.

Hyundai and the Korean government are seeking allow for imported EVs to qualify for credits under a commercial-vehicle loophole.

Manchin believes this commercial loophole would harm the domestic EV market, “If these vehicles are deemed eligible, I can guarantee that companies will focus their attention away from trying to invest in North America.”

[Bettie]

6. Wow, I actually, agree with

Joe Manchin on something.

Weird.

[Just A Box Of Rain]

7. I often come down on the other side of policy questions from Joe Manchin.

However, when I take time to listen to his position, I'm generally left with a recognition that he has legitimate reasons for the stands that he takes, and that his reasoning looks very different than the sorts of lampooning that he's subjected on this forum.

[WarGamer]

8. The IRA made receiving EV credits more complex.

https://electrek.co/2022/12/13/which-electric-vehicles-still-qualify-for-us-federal-tax-credit/

The biggest issue we all are having with the Inflation Reduction act, is how cloudy and confusing its EV requirements are. Bear with us as we sort through it all, to once again provide you with the most up to date details of this ever evolving tale.