Senator Manchin Introduces Bill to Take Home EV Credits
West Virginia’s senator Joe Manchin is singing Take Me Home to EV tax credits as he introduces a bill to accelerate domestic battery manufacturing.
Background: Introduced as apart of the Inflation Reduction Act (IRA), EV buyers qualify for a $7500 tax credit if at least 40 percent of the minerals in the battery come from the United States or one of the twenty countries that have a free-trade agreement with the country.
The complication: The tax credit came into effect on January 1, but the US Treasury has eased the rules until March so that the tax credit can still be issued, even if the batteries don’t meet the whole 40 percent criteria.
Senator Manchin wants the do away with the delay and have the rules kick in now and retroactively.
Overseas drama: This comes after the EU criticized the IRA, claiming that it’s harming their own manufacturing… which for a bill that is focused on promoting domestic manufacturing and energy security, is kind of the point.
- The European Commission is looking to raise money to provide grants and loans to its member states for green investments and plans to relax its rules to make it easier for individual countries to invest in green tech.
Zoom out: While Senator Manchin’s bill may not pass – no other senator has backed him up on it to date – the IRA has done its job of spurring domestic green investment. It’s also spurring global investment as other countries race to increase funding to keep their green industries competitive.