Sen. Joe Manchin, D-W.Va., said Thursday that the Treasury Department decision to delay its rules on tax credits for electric vehicles “bends to the desires of the companies looking for loopholes.”
A measure in the Inflation Reduction Act added by Manchin required the Treasury Department to draft rules on the eligibility of tax credits for electric vehicles by Dec. 31.
But the department announced Thursday it will delay this process to March, a decision Manchin called “an unacceptable outcome” as he called for a pause in the policy’s implementation.
“The information released today from the Treasury Department outlining how they will be implementing the commercial and consumer EV tax credits bends to the desires of the companies looking for loopholes and is clearly inconsistent with the intent of the law,” Manchin said in a statement. “It only serves to weaken our ability to become a more energy secure nation.”
The policy to be drafted by the Treasury Department will establish guidelines for $3,750 tax credits for electric vehicle batteries with a majority of manufacturing value in North America and an additional $3,750 credit for batteries with 40% of its mineral values mined or processed in countries that have a free trade agreement with the U.S.
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Manchin expressed concerns with how the Treasury Department will be able to process the new tax credits without established guidelines it was directed to finalize by the end of the year. He said he will introduce legislation in the new year that clarifies his measure’s intent and ensures the Treasury Department follows proper guidelines.
The tax credits are essential, Manchin said, to help the U.S. compete with its enemies in a growing industry.
“It is unthinkable that we still depend on China and Russia for the materials and manufacturing necessary to power our nation in the 21st century, and I cannot fathom why the Biden administration would issue guidelines that would ensure we continue on this path,” Manchin said.
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The Treasury Department had four months to draft the rules as directed under the Inflation Reduction Act. Manchin called on the agency to pause the implementation of the tax credits until they have finalized rules.
Manchin was the swing vote in a tight 51-50 passage of the Inflation Reduction Act, which was a modified version of President Biden’s “Build Back Better” plan spiked by the West Virginia senator months earlier.
The Treasury Department did not immediately respond to a request for comment.