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Manchin says Treasury should limit commercial use of EV tax credit


US Senator Joe Manchin, a Democrat who chairs the chamber’s energy panel, asked the Treasury Department on Tuesday not to allow the ad. tram tax credits are used for consumers lease, car rental or carpool sales, rejecting a broad interpretation of the credit.

Reuters first reported last week that South Korea and some automakers are pushing for a request from the Treasury Department to allow the use of commercial electric vehicle tax credits to increase consumer access to EVs. as well as buying ride-sharing and rental cars.

$430 billion The US Inflation Reduction Act (IRA) passed in August ended a $7,500 consumer tax credit for electric vehicles assembled outside North America, leaving South Korea, the Union Europe, Japan and other countries angry.

The climate bill also imposes significantly the battery restrict sourcing of minerals and components, set income and price limits on qualified vehicles, and seek to phase out Chinese minerals or battery components. However, the so-called “45W” commercial credit does not have the sourcing restrictions of the so-called “30D” consumer credit.

“Some car manufacturers and foreign governments are asking your agency for a broad explanation of 45W to allow rental cars, rental vehicles, and carpooling (such as vans) used for Uber and Lyft), a large portion of the US vehicle market, is eligible for the full $7,500 Commercial vehicle credit as a way to bypass stringent sourcing requirements,” Manchin, who chairs the Energy Commission and largely wrote the EV tax credit rules, said in a letter to the Treasury Department. , did not immediately comment.

Manchin said that if the explanation is successful “companies will focus their attention on trying to invest in North America to meet 30D requirements and will instead continue in business.” as usual, putting our transportation industry at greater risk.”

Manchin said he recognizes “many of our allies may be upset by the strong domestic sourcing requirements contained in the IRA and are looking to circumvent them. Let me be clear, this bill is not being approved. It’s designed to hurt any of our allies, but it’s designed to help this country and make us stronger.”

Toyota said last week “the lack of criteria to qualify for (trade credit) could undermine the IRA’s goals to expand domestic EV battery production and maintain energy independence.” of America.”

Hyundai and that wants the U.S. Treasury Department to allow electric vehicle renters to benefit from trade credits and qualify for a tax credit of up to $4,000 on used electric vehicles if they purchase the vehicle on contract. lease expires.

Reporting by David Shepardson; Editing by Grant McCool



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