Manchin Calls Biden Admin’s Electric Vehicle Tax Credit Plan a ‘Pathetic Excuse’

Senator Joe Manchin from West Virginia has voiced concern about a recent ruling by the Biden administration that amends the electric vehicle tax credit provisions in the 2022 Inflation Reduction Act (IRA). According to Manchin, the ruling significantly differs from what he believed was intended when he voted for it last summer.

The IRA provision stated that certain electric vehicles meeting supply chain criteria would be eligible for up to $7,500 in tax credits. President Biden supported the IRA, and it passed last year after Democratic lawmakers agreed with Manchin on certain provisions, including supply chain requirements for electric vehicle production. Despite this, in December, the Treasury Department delayed the electric vehicle tax credit system’s implementation until it had prepared guidelines on the enforcement of supply chain requirements.

Last Friday, the Treasury Department released guidance, prompting Manchin to criticize it in a statement. He said, “The guidance released by the Department of the Treasury completely ignores the intent of the Inflation Reduction Act…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 has called for comment on the issue, and the guidance is subject to a 60-day comment period.

Although it remains unclear which parts of the Treasury Department ruling he opposes, Manchin had previously threatened to take legal action if the guidelines deviated too far from Inflation Reduction Act provisions. However, despite his criticisms, the Biden administration described its relationship with Manchin as “respectful.”

Other automakers see the Treasury Department guidance as limiting tax credits’ benefits for domestic electric vehicle production, while the White House has not commented publicly on the issue.