Friday, September 12, 2025

Latest

Joe Manchin Doesn’t Want Foreign Cars to Qualify for EV Tax Credit

US drivers buying imported cars may potentially qualify for new EV tax credits that are part of the Inflation Reduction Act, easing foreign carmakers’ worries about America’s strengthening shift towards tighter climate regulation.

The US Treasury Department has indicated that some imported electric vehicles could qualify for EV tax credits under the Inflation Reduction Act. The department released a list of frequently asked questions last week, in which it indicated that imported EVs could be eligible for a consumer tax credit of up to $7,500 through a commercial-vehicle clause in the law by leasing them.

However, the move has prompted criticism from West Virginia Senator Joe Manchin, who has called for the implementation of both the commercial and consumer EV tax credits to be paused until the department issues “the appropriate guidance.” Manchin plans to introduce legislation that “further clarifies the original intent of the law and prevents this dangerous interpretation from Treasury from moving forward.”

According to Manchin, the current interpretation “bends to the desires of the companies looking for loopholes and is clearly inconsistent with the intent of the law.” He insists that tough rules need to be implemented on who can claim tax credits, otherwise the US would be complicit in subsidizing production in China and other rival countries.

As such, Manchin plans to introduce a new set of legislation that will give some clarity to the original law, and stop the Treasury’s interpretation from moving ahead. In order to encourage domestic EV manufacturing, cars can only qualify for the $7,500 consumer tax credit if 40% of the EV’s battery was manufactured with raw materials derived from nations holding a free-trade agreement with the US, while 50% of the battery’s components must be made domestically.

Hyundai, along with South Korea’s government, extensively lobbied the White House to take a relaxed interpretation of the clause, ultimately allowing cars to take advantage of the tax credit without meeting the criteria on EV batteries and the raw materials they are comprised of.


Information for this briefing was found via the IRS and Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Avino Q2 Earnings: Steady As She Goes

MEG Energy: Cenovus Comes In With $7.9 BILLION Offer

Orla Mining Q2 Earnings: Musselwhite Changes Everything

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

Treasury Suspends Anti-Money Laundering Reporting Requirements for US Businesses

The US Treasury Department has suspended enforcement of key provisions of the Corporate Transparency Act...

Monday, March 17, 2025, 10:53:00 AM

Tesla: 405,278 Deliveries In Q4 2022, Tax Credit Ineligibility, $2.2 Million Fine In South Korea

Tesla (Nasdaq: TSLA) stated that it delivered a record 405,278 cars in the fourth quarter...

Wednesday, January 4, 2023, 03:07:00 PM

US Treasury Imposes New Sanctions on Iran’s Nuclear Program

The US Treasury Department issued new sanctions Wednesday targeting five Iranian entities and one individual...

Thursday, April 10, 2025, 12:54:00 PM

US Food Inflation Spikes To 43-Year High Yet Biden ‘Celebrates’ Inflation Reduction Act

The biggest disconnect today: US President Joe Biden touted the recently passed Inflation Reduction Act...

Wednesday, September 14, 2022, 02:59:00 PM

The Manchin Surprise: US Senator Now Supports Biden’s “Inflation Reduction” Tax Agenda

It has been called by many names but US President Joe Biden’s attempt to enact...

Saturday, July 30, 2022, 09:00:00 AM