While Joe Biden has been on a green energy tangent since taking office, some of his policies are hindering electric vehicle tax credits.
The President recently announced new regulations that would make it more difficult to qualify for the $7,500 tax credit offered to consumers who purchase an EV. This move has been met with strong criticism from both sides of the aisle, with West Virginia Senator Joe Manchin leading the charge against the new rules.
Daily Wire reports, the new rules, which are set to take effect on April 18th, will limit eligibility for the tax credit to vehicles with battery packs larger than 7 kWh. This means that many popular models such as the Nissan Leaf and Chevrolet Bolt will no longer qualify for the credit. Additionally, automakers must now certify that their EVs are made with at least 50% U.S.-sourced parts in order to be eligible for the credit. These new requirements have been met with strong opposition from automakers and consumers alike, as they could significantly reduce sales of EVs and make them more expensive overall.
Senator Manchin has been particularly vocal in his opposition to these new rules, calling them “unacceptable” and accusing the Biden administration of trying to “pick winners and losers.”
In a statement Senator Manchin wrote “Yet again – the guidance released by the Department of the Treasury completely ignores the intent of the Inflation Reduction Act, It is horrific that the Administration continues to ignore the purpose of the law which is to bring manufacturing back to America and ensure we have reliable and secure supply chains. American tax dollars should not be used to support manufacturing jobs overseas. It is a pathetic excuse to spend more taxpayer dollars as quickly as possible and further cedes control to the Chinese Communist Party in the process.”
Manchin also vowed to sue the administration if they do not reverse their decision on this issue. Manchin believes that these new regulations will hurt American workers by making it harder for companies like Tesla and General Motors to compete in the EV market. He also argues that this move is a step backwards in terms of reducing emissions, as it could discourage people from buying EVs altogether.
The Biden administration’s decision to tighten eligibility requirements for EV tax credits is sure to have far-reaching implications on both consumers and automakers alike. It remains unclear whether or not Senator Manchin will be successful in his efforts to reverse these regulations, but one thing is certain: this issue is far from resolved.