Sen. Joe Manchin (D-WV) warned that he would sue the Biden administration if the Treasury Department’s forthcoming guidance on the updated electric vehicle tax credit does not incorporate his intended sourcing provisions.
Manchin, co-author of the Inflation Reduction Act, is frustrated with the Biden admininstration’s delay in issuing guidance on compliance rules for battery components and critical minerals. He’s also concerned that the administration may enforce the requirements less strictly than he intended. Manchin has expressed concerns about the guidance and threatened legal action if the law’s final interpretation does not align with his intended meaning, “I think they’re going to try to screw me on this, and I’m willing to go to court.”
The Inflation Reduction Act requires vehicles to be North American-made and have battery components and critical minerals from specific countries, including the U.S., to qualify for full consumer clean vehicle credits. Manchin aimed to create domestic clean vehicle supply chains and decrease dependence on Chinese battery manufacturing and mineral processing. However, U.S. allies in Europe, Japan, and South Korea have opposed the sourcing provisions, arguing that they unfairly harm their manufacturers.
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