J. Scott Applewhite-Pool / Getty Images
Senator Joe Manchin called the federal tax cuts for electric vehicles “ridiculous” at a Senate hearing Thursday. The West Virginia politician, who continues to earn millions from the coal industry, is a regular critic of subsidies for electric vehicles, which were a key part of the Democratic Party’s plan to get rid of carbon emissions in the transportation sector.
Since 2009, the US has been using federal tax credits as a way to offset the higher price of electric vehicles thanks to its battery packs.
Currently, the credit is for any plug-in vehicle (both EV with battery and plug-in hybrid EV) with a battery capacity of at least 5 kWh and ranges from $ 2,917 to $ 7,500, depending on the exact total kWh. But it’s a credit, not a discount, so to get the full $ 7,500, an EV buyer must have at least $ 7,500 in tax that year. Tax credit also goes out when a carmaker sells 200,000 plug-in vehicles, though so far only Tesla and General Motors have exceeded that limit.
Advertising
Perhaps recognizing the rapidly declining opportunity to ameliorate the worst effects of climate change, House Democrats drafted an expanded incentive package that would increase tax cuts by up to $ 12,500 based on a variety of factors, including whether the EV was made by a union. potential.
But the Democratic Party has a slim majority in the Senate, and a vote on more tax credit would have been impossible without Manchin’s vote.
Despite claims that he wants to tackle climate change, this is not the first time Mancin has clarified his opposition to policies that would really help. In November 2021, he described EV motives as “wrong” and “not American”. And in March 2022, he said he was “very reluctant to follow the path of electric vehicles” and criticized the government’s idea of spending money on infrastructure.
Manchin is questioning Transport Secretary Pete Buttigieg, urging his department to spend more money on more freeways in West Virginia when the debate turned to EV tax rebates.
“There is a waiting list for EV right now with the price of fuel at $ 4. But they still want to drop [a] Credit $ 5,000 or $ 7,000 or $ 12,000 for the purchase of electric vehicles. It makes no sense to me. “When we can not produce enough product for the people who want it and we will continue to pay them to get it – it’s absolutely ridiculous in my mind,” said Manchin.
