Sunday, February 5, 2023

Manchin pushes to defer tax credits for electric cars

Washington (AFP) Amid criticism from Democratic Senator Joe Manchin, he on Wednesday delayed new tax breaks for electric cars.Which is a key feature of President Joe Biden’s climate legislation,

Manchin said the Treasury Department’s guidelines allow manufacturers in Europe and other countries to make large numbers of batteries for electric vehicles in North America to circumvent the requirements.

Climate legislation, formally known as the Inflation Reduction Act“This is a bill for energy security first and foremost,” Manchin said, adding that the EV tax credits are intended to “increase domestic manufacturing and reduce our reliance on foreign supply chains for critical minerals.”

Manchin’s attempt to delay the tax break came as Energy Secretary Jennifer Granholm and White House climate adviser Ali Zaidi highlighted the administration’s efforts to promote electric vehicles and related infrastructure at the Washington, D.C. auto show on Wednesday. did.

Granholm said electric vehicle sales have tripled since Biden, a Democrat, took office two years ago. There are now more than 2 million electric vehicles and 100,000 chargers on US roads, he said, adding that more than $100 billion has been invested or pledged for electric vehicles and their supply chains, including batteries.

Granholm told reporters that, while batteries and components have long been made in China, “we’re going to bring that manufacturing home.”

“We’re going to give Americans a chance to drive American cars made by American workers, and it’s only going to get worse when Americans start driving these vehicles and realize how awful they are,” he said. “Demand will skyrocket. We estimate that by 2030, half the cars sold in the US will be electric.”

Granholm and the White House declined to comment on Manchin’s bill, but the West Virginia lawmaker’s action is unlikely to gain traction in the Senate, where Democrats hold a slim majority and have vetoed the bill that just passed. Has shown no inclination to reopen. to match. Voting Line. During the midterm campaign, Republicans criticized Biden and other Democrats. In support of electric vehicles citing the relatively high cost and Chinese-made batteries.

tax credits The target of up to $7,500 per vehicle aims to encourage electric vehicle sales and domestic vehicle and battery production while reducing greenhouse gas emissions that cause global warming. European and Asian allies, including French President Emmanuel Macron, have criticized the rules as unfair to foreign manufacturers.

And while Macron praised Biden’s efforts to curb climate change, he said during a visit to Washington that subsidies in the new law could be a bigger problem for European companies.

Biden has acknowledged there are “holes” in the law But he said there are “some adjustments we can make” to satisfy allies.

Manchin’s bill follows a Treasury Department decision to delay regulations on batteries and metal content until March, while allowing the rest of the program to take effect on January 1. Meet battery requirements.

“America is the birthplace of Henry Ford, who revolutionized the auto industry,” Manchin said, adding, “It’s a shame we rely on foreign suppliers, especially China, for the batteries that power our electric cars.”

Manchin, chairman of the Senate Energy and Natural Resources Committee, was a key vote in passing the climate legislation, which was adopted without the support of any Republicans in the House or Senate. He said the Treasury Department-approved exemptions, which include allowing tax breaks for electric vehicles purchased for commercial use, such as rental or ride-sharing, even if they are foreign-built, reflect the intent of the law to reduce dependence. Weaken the US, including hostile countries, and job creation in the United States.

At the World Economic Forum in Davos, Switzerland, last week, Manchin said that when Democrats approved the ban on electric cars, they did not realize that the European Union did not have a free trade agreement with the United States. He told reporters on Capitol Hill this week that European countries should reconsider their policies to promote clean energy and that the United States could work on a trade deal.

“Whether they realize it or not, they need to get it together and make a free trade deal,” Manchin said.

Senate Finance Committee Chairman Ron Wyden said he has no interest in reopening the climate bill, which was passed after more than a year and a half of sometimes contentious negotiations.

John Bozzella, president of the Alliance for Automotive Innovation, an industry trade group, said Manchin’s bill would only add confusion to the already complex EV tax credit, which many drivers and even some car dealers don’t fully understand.

Bozella said, “We want to make sure we don’t create confusion for customers who may already be confused about who may qualify for the tax credit, so I’m not sure about the value of the new law.” I’m not quite sure.”


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