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Manchin says Treasury should limit commercial EV tax credit use

by TodayDigitNews@gmail.com
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Senator Joe Manchin, a Democrat who chairs the House Energy Committee, told the Treasury Department on Tuesday that the commercial electric vehicle tax credit should be used to sell consumer leases, rental cars or ride-sharing vehicles. It rejected a broad interpretation of the deduction, asking not to allow it. .

Reuters reported last week that South Korea and some automakers will take advantage of the commercial electric vehicle tax credit to facilitate consumer access to electric vehicles, allowing them to buy rideshares and car rentals. I first reported that I asked for.

The $430 billion U.S. Inflation Reduction Act (IRA) passed in August ended a $7,500 sales tax exemption for electric vehicles assembled outside of North America, angering South Korea, the European Union, Japan and others.

The climate bill also imposes severe restrictions on the procurement of battery minerals and components, sets income and price caps for eligible vehicles, and seeks to phase out battery minerals or components in China. However, commercial credit, known as ’45W’, does not have the procurement limit of consumer credit, known as ’30D’.

“Some automakers and foreign governments are pushing the 45W power plant that enables rental cars, leased vehicles, and rideshare vehicles (such as those used by Uber and Lyft) to be a big part of the U.S. car market. We are calling for a broader interpretation of our agency: “We are eligible to receive the full amount of the $7,500 commercial vehicle credit as a way to circumvent stringent procurement requirements,” said Chairman of the Energy Commission and the majority of the EV tax credit rule. said in a letter to the Treasury Department, but did not immediately comment.

If the interpretation succeeds, Manchin said, “companies could divert their attention from trying to invest in North America to meet the 30D requirements and instead continue business as usual, putting the transportation sector at greater risk.” will become,” he said.

“We recognize that many of our allies may be offended by the strong domestic procurement requirements contained in the IRA and may be looking for ways to get around it,” Manchin said. Let me be clear, this bill was not meant to hurt our partners in our allies, but it was designed to help this country and make us stronger. ”

Toyota said last week that “the lack of eligibility criteria (for commercial credit) could undermine the IRA’s goals of expanding domestic production of EV batteries and maintaining U.S. energy independence.” rice field.

Hyundai Motor and Kia Motors have told the U.S. Treasury that people who lease EVs will be able to benefit from commercial credits and tax credits of up to $4,000 if they buy a used EV when the lease expires. I hope to qualify for

Reported by David Shepardson.Editing by Grant McCool

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