(PartiallyPolitics.com) – This week, Sen. Joe Manchin (D-W.Va.) warned the Biden administration about filing a potential lawsuit if the Treasury Department seeks to circumvent restrictions through anticipated guidance, which would threaten the law on electric vehicle tax credits.
Manchin specifically told reporters that if the guidance “goes off the rails” or circumvents what he intended then he is going to be “going to court.” The Democrats’ climate, tax, and healthcare bill in question had eliminated the previously established cap on the number of electric vehicles that could benefit from the consumer tax credits. However, the bill also included more requirements and stipulations about which vehicles could be eligible for receiving the credit.
As part of the bill, it is also noted that new vehicles would be eligible for half of the $7,500 credit if a portion of the battery components has been created in North America. The other half would depend on whether the mineral used in the battery was refined or processed in countries that have a free trade agreement with the U.S.
These restrictions might cause problems for automakers as one industry source recently revealed that they did not think that any of the electric vehicles currently available in the market fit the battery minerals requirement.
The restrictions were initially going to go into effect at the start of the year, however, in December the Biden administration stated that they would delay them until guidance could be issued in March. This decision had been condemned by Manchin who had called for the guidance to be released by December 31.
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