U.S. Senator Manchin Says Treasury Should Limit Commercial EV Tax Credit Use
2 mins read
Published on December 23, 2022
U.S. Senator Joe Manchin, a Democrat who chairs the chamber's energy panel, asked the Treasury Department on Tuesday not to allow a commercial electric vehicle tax credit to be used for consumer leasing, rental cars or ridesharing vehicle sales, rejecting a broad interpretation of the credit.
Reuters first reported last week the push by South Korea and some automakers that asked the Treasury Department to allow use of the commercial electric vehicle tax credit to boost consumer EV access as well as for the purchase of ride share and rental car vehicles.
The $430 billion U.S. Inflation Reduction Act (IRA) passed in August ended $7,500 consumer tax credits for electric vehicles assembled outside North America, angering South Korea, the European Union, Japan and others.
The climate bill also imposes significant battery minerals and component sourcing restrictions, sets income and price caps for qualifying vehicles and seeks to phase out Chinese battery minerals or components. The commercial credit known as "45W" does not, however, have the sourcing restrictions of the consumer credit called "30D."
"Some automakers and foreign governments are asking your agency for a broad interpretation of 45W that would allow rental cars, leased vehicles, and rideshare vehicles (such as those used for Uber and Lyft), a huge piece of the U.S. vehicle market, to be eligible for the full $7,500 commercial vehicle credit as a way to bypass the strict sourcing requirements," Manchin, who chairs the Energy Committee and largely wrote the EV tax credit rules, said in a letter to the Treasury Department, which did not immediately comment.
Manchin said if successful in the interpretation "companies will focus their attention away from trying to invest in North America to meet the requirements of 30D and will instead continue with business as usual, putting our transportation sector further at risk."
Manchin said he recognized "many of our allies may be upset at the strong domestic sourcing requirements included in the IRA and are looking for a way around them. Let me be clear, this bill was not designed to hurt any of our allied partners, but it was designed to help this country and make us stronger."
Toyota Motor Corp said last week "the lack of criteria to qualify for (commercial credits) could undermine the IRA's goals to expand domestic production of EV batteries and maintain America's energy independence."
Hyundai and Kia want the U.S. Treasury to allow people leasing EVs to benefit from commercial credits and to qualify for up to a $4,000 tax credit for used EVs if they buy vehicles when leases expire.
(Reporting by David Shepardson; editing by Grant McCool)
Last Updated on December 23, 2022
Great Deals on Used CarsView All Used Cars
- 75,000 km
- 22,000 km
- 41,000 km
- 80,000 km
- 80,000 km
- 61,234 km
- 61,000 km
- 25,000 km
- 68,000 km
- 44,123 km
-11091 second ago
Prices for the Aprilia RS 457 could be announced at India Bike Week 2023, while deliveries are likely to begin from early 2024 onwards
-8987 second ago
The Gemini battery utilises a unique dual-chemistry design that combines two distinct cell types to maximise efficiency and range
1 hour ago
The third-generation Renault Duster has been revealed globally and here's a quick look at what's new on the SUV
3 hours ago
This makes the S1 X+ Rs 30,000 cheaper than the S1 Air, priced at nearly 1.20 lakh
4 hours ago
JLR India to conduct annual holiday service camp from December 4th-9th at all authorised retailers, offering vehicle check-ups, exclusive offers and more
A strong push during the festive season helped Ola Electric achieve its highest-ever monthly sales, retaining its number-one position in the market.
Gauhar Khan and her husband, Zaid Darbar, were pictured together at the dealership in Mumbai while taking delivery of their new Mercedes.
Hero MotoCorp’s cumulative sales for November 2023 stood at 491,050 units, witnessing a 25.61 per cent increase year-on-year
22 hours ago
22 hours ago
The bikemaker’s cumulative motorcycle sales for the year 2023 stood at 621,672 units, reflecting a 13 per cent increase.
2 days ago
This collaboration's initial phase involved delivering 20 BYD e6 vehicles, flagged off in Bengaluru.
3 days ago
The RV400 is priced at Rs 1.39 lakh and is available for sale on Flipkart
3 days ago
The updated Tesla Model 3 gets the “Active Hood” feature to reduce pedestrian injuries in the event of a collision
4 days ago
The new platform will largely use local components and has been dubbed the ‘A Main Platform’ with the first electric vehicle set to roll out in 2026, specifically for the Chinese market.
7 days ago
The company has traversed over 300 million clean kilometers that prevented over 23,000 tonnes of CO2 gas emissions