Manchin doubles down on electric car subsidies, despite Europes wrath

Analysis | Manchin doubles down on electric car subsidies, despite ... - The Washington Post.

Manchin, electric car subsidies, Europe

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Sen. Joe Manchin III (D-W.Va.) unveiled a bill today to halt tax credits for electric vehicles that don’t satisfy the battery sourcing requirements in the Inflation Reduction Act.

The measure could increase tensions in Europe, where leaders already worry that America’s climate law will unfairly disadvantage their clean-energy industries, and in Washington, where the Biden administration is still racing to implement the landmark law.

The legislation, dubbed the American Vehicle Security Act, would direct the Treasury Department to stop issuing tax credits for EVs that don’t comply with the climate law’s battery sourcing provisions.

“It is unacceptable that the U.S. Treasury … continues to make the full $7,500 credits available without meeting all of the clear requirements included in the Inflation Reduction Act,” Manchin said in a statement.

“The IRA and the EV tax credits must be implemented according to the Congressional intent to ensure the United States, as the superpower of the world, is not beholden to countries that don’t share our values,” he added.

The measure comes after several European leaders voiced frustration with America’s massive green-subsidy package at last week’s World Economic Forum meeting in Davos, Switzerland.

A Democratic aide for the Senate Energy and Natural Resources Committee, which Manchin chairs, declined to comment on Europe’s concerns during a Tuesday call with reporters previewing the bill.

But Manchin has defended the intent of the law, telling Politico that “this piece of legislation was not intended to harm anybody. It was intended to keep America strong so we could help our friends. That’s it.”

Manchin also said last week that he didn’t realize the European Union lacked a free trade agreement with the United States when he crafted the new requirements for the EV credits.

The new bill faces an uncertain fate on Capitol Hill, where all Republicans voted against the climate law, while Democrats might be wary of tweaking one of their signature achievements.

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