Manchin Slams White House Over New EV Tax Credits

On Friday, Sen. Joe Manchin (D-WV) criticized the Biden administration for abandoning another another federal policy that was part of the so-called Inflation Reduction Act.

The number of vehicles that would qualify for the electric vehicle (EV) tax credit would be reduced, according to new plans presented by the IRS on Friday. But limits put in place to encourage American procurement of vital minerals used in batteries would also be relaxed.

Only around 21 of the existing 72 EV models marketed in the United States would be eligible for the entire $7,500 tax credit under these conditions, The Daily Wire noted last year. According to the New York Times, this figure will decrease even more under the new sourcing guidelines that will go into effect on April 18.

The West Virginia moderate even threatened legal action before the US Treasury’s new guidelines was made public.

In opposition to the August climate legislation he was closely involved with, he threatened to sue if “it goes off the rails.” 

“I will do whatever I can — if that means going to court and I can do it, I’d do it,” Manchin stated.

The senator charged the administration with continuing to ignore the Inflation Reduction Act’s goals after the new guidance was released. He explained that it was to ensure that we had dependable and secure supply chains and to bring manufacturing back to America.

This most recent step, he said, was “a pathetic excuse.”

Manchin claimed that it just results in more US tax expenditures and further handover of power to the Chinese Communist Party.

His main issue seemed to be the loosening of standards for the source of battery minerals. The Inflation Reduction Act stipulates that at least 40% of essential components for EV batteries must be domestically produced or come from countries with which the US has free trade agreements.

However, according to The New York Times, the requirements for the new laws have been modified to include countries that have their own Critical Minerals Agreements with the US.

Japan, which only signed the pact with Washington on Tuesday, appeared to be the target of that effort in particular. Critics claim that the law expanded the number of nations that may serve as sources for vital minerals.

Manchin charged the White House with being determined to “violate and subvert the law to advance a partisan agenda” in a Wall Street Journal op-ed published on Wednesday. He claimed that this was done while ignoring the nation’s energy and financial security.