Manchin Blasts Biden Admin Over New EV Tax Credit Regulations

Senator Joe Manchin, a Democrat from West Virginia, has criticized the Biden administration for purportedly reneging on another policy from the Inflation Reduction Act worth $740 billion. In particular, he has taken issue with the new regulations implemented for the electric vehicle (EV) tax credit by the administration. The Internal Revenue Service has released new rules which would decrease the number of vehicles eligible for the $7,500 tax credit while somewhat loosening restrictions for obtaining critical minerals specifically for EV batteries.

Manchin denounced the new regulations in a statement, claiming that the Department of the Treasury had completely disregarded the intent of the Inflation Reduction Act. He alleged that the administration was ignoring the law’s purpose, which was to bring manufacturing back to America and establish reliable and secure supply chains. Manchin further stated that American tax dollars should not be utilized to support jobs in foreign countries and that it would be a “pathetic excuse” to spend more taxpayer money as quickly as possible, thus enabling the Chinese Communist Party to control the situation.

Regarding the loosening of requirements for sourcing critical minerals, Manchin seemed to be specifically criticizing one of the newly proposed guidelines. Under the Inflation Reduction Act, to qualify for the $7,500 tax credit, the battery’s critical materials’ minimum 40% must derive from domestic sources or countries with free trade agreements with the United States. However, the new regulations proposed by the administration would also include countries that have a separate Critical Minerals Agreement with the U.S. The new rule identified Japan as the country having a Critical Minerals Agreement with the U.S. that was signed on Tuesday, paving the way for more countries to be added to that list in the future. The Daily Wire reported in 2022 that only 21 of the 72 available electric car models would qualify for the full $7,500 tax credit, and less eligibility is anticipated when the new sourcing requirements go into effect on April 18th.

Manchin had provided the critical vote that helped pass the Inflation Reduction Act in 2022 and has been dissatisfied all week with the administration’s execution of the legislation. He wrote in a Wall Street Journal op-ed that unelected bureaucrats, ideologues, and appointees seem determined to violate and subvert the law to push a partisan agenda that disregards energy and fiscal security. Furthermore, they appear to be redefining “domestic energy” to increase clean-energy spending significantly. Senate Democratic leadership had also promised Manchin a side deal on oil and gas permitting reform for his vote. However, that deal has since fallen apart.

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