Sen. Joe Manchin III’s efforts to enforce the Biden administration’s implementation of the electric vehicle tax credits from the Inflation Reduction Act are being rebuffed by members of his own party.
And Republicans are capitalizing on the intraparty squabble.
The conservative West Virginia Democrat asked for unanimous consent to pass a bill Thursday to enforce the provision from the tax-and-climate-spending law that EV batteries and materials be sourced from North America to qualify for up to $7,500 in tax credits.
The request was rejected by Sen. Debbie Stabenow, Michigan Democrat.
The law required the Treasury Department to craft final eligibility rules for EV credits by Dec. 31.
However, the department blew past that deadline and is instead allowing until March federal tax credits worth thousands of dollars, regardless of where vehicles’ batteries and components are sourced.
The intraparty dispute was not lost on Senate Minority Leader Mitch McConnell.
“Good luck to the American families trying to understand what on Earth does and doesn’t qualify for the big government subsidies. Good luck to the American businesses trying to figure out how to direct their investments,” the Kentucky Republican said. “It would be comical if this Democrat-on-Democrat chaos weren’t impacting our country.”
The Treasury’s delay in implementing the law has infuriated Mr. Manchin, who was crucial in drafting the legislation with the intent to wean the U.S. off its dependence on China for critical minerals that electric vehicles require.
Starting Jan. 1, 40% of each EV was supposed to be sourced and assembled in North America to qualify for the tax break, increasing by 10% annually until it reaches 100% in 2029. But Treasury said last month it needed more time and would punt the sourcing requirements until March.
“Why the IRS did not do their job I cannot tell you, unless their intent was never to try and comply with what we passed,” Mr. Manchin said. “All we’re saying is — can’t we at least get automobiles in the United States of America where we’re not dependent on foreign supply chains, especially China?”
Even a Republican, Sen. Mike Braun of Indiana, agreed with Mr. Manchin, despite his vehement opposition to the Inflation Reduction Act.
“Whether you agree with me or Sen. Manchin about trying to do things here in America whenever we can and not to end up supporting our main geopolitical enemy in the process, I think you got to be careful,” Mr. Braun said. “The IRS was sleeping at the wheel.”
But Ms. Stabenow was not persuaded.
“I take a backseat to no one on wanting to get out of China,” she said. “On behalf of Treasury, who was given thousands of regulations to write by Dec. 31, it is not unreasonable that they took the time to listen and be thoughtful about how they did it.”
“On behalf of American automobile companies, autoworkers and American consumers,” she continued, “I object.”
• Ramsey Touchberry can be reached at rtouchberry@washingtontimes.com.
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