U.S. Senator Joe Manchin wants use of the commercial EV tax credit limited so that leased cars, rideshare cars and others don't have a tax credit loophole.
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.billion U.S. Inflation Reduction Act 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.
"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 , a huge piece of the U.S. vehicle market, to be eligible for the full $7,500credit 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."
said last week"the lack of criteria to qualify for could undermine the IRA's goals to expand domestic production of EV batteries and maintain America's energy independence."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.
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