Another Democrat breaks with Biden over electric vehicle tax credit guidance
Samantha-Jo Roth
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Rep. Don Beyer (D-VA) is speaking out about the Biden administration’s electric vehicle tax credit guidance, saying their “go-it-alone approach on trade policy is risky and unsustainable.”
Beyer’s comments come as the U.S. Treasury Department unveiled stricter electric vehicle tax rules recently in an effort to wean the United States off dependence on China for EV battery supply chains. The guidance, set to take effect for vehicle purchases starting April 18, triggers new requirements for critical mineral and battery components.
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The Inflation Reduction Act requires 50% of the value of battery components to be produced or assembled in North America to qualify for a $3,750 credit and 40% of the value of critical minerals sourced from the U.S. or a free trade partner for a $3,750 credit.
Recently, the U.S. and Japan struck a new trade deal on EV battery minerals, which is now included in the Treasury’s guidance. The move is frustrating some lawmakers after the Biden administration orchestrated a free trade agreement without congressional approval.
“Changing the basic definition of free trade agreements for the purposes of skirting Congress’s intent in the Inflation Reduction Act, even for laudable climate and diplomatic goals, could easily be reversed by a future administration and set our climate agenda back immeasurably,” Beyer said in a statement on Thursday.
“Trade policy is best conducted in collaboration with Congress, as that requires buy-in from a wide cross-section of stakeholders throughout the economy and provides more certainty to our trade partners,” he added.
Sen. Joe Manchin (D-WV), chairman of the Energy and Natural Resources Committee, threatened to sue the Biden administration last week before the new guidance was issued and slammed the proposed rules as insufficient when they were unveiled.
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The West Virginia Democrat, who is currently still deciding whether to run for reelection in a deep red state, said the guidance from the Treasury “ignores the intent of the Inflation Reduction Act.”
“It is horrific that the administration continues to ignore the purpose of the law which is to bring manufacturing back to America and ensure we have reliable and secure supply chains,” Manchin said in a statement. “American tax dollars should not be used to support manufacturing jobs overseas.”