Sen. Warnock Complains New EV Tax Credit Too Restrictive
Sen. Raphael Warnock, D-Ga., in a tight race for re-election, asked the Treasury Department to write regulations for the electric vehicle tax credits that make more vehicles eligible for the credits than the text of the Inflation Reduction Act delineates.
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Cars and trucks made in North America would need to have 50% of the value of their batteries come from the USMCA region to qualify for half the credit in 2023; 40% of the critical minerals for those batteries would need to be either mined or processed in the U.S. or in a country that has a free-trade agreement with the U.S. Those numbers would climb each year.
According to the Zero Emission Transportation Association, it's likely soon no vehicles could qualify for the credit because, in addition to the 50% metric, Chinese subassemblies in the battery are forbidden starting in 2024.
Warnock, whose state has major South Korean auto manufacturing plants, complained to Treasury Secretary Janet Yellen that Hyundai and Kia EVs could not qualify because they are not assembled in the U.S. or Mexico yet, though Hyundai is building another Georgia factory that will build EVs.
He wrote, "I urge you to offer maximum flexibility for vehicle manufacturers and consumers to take full advantage of the electric vehicle (EV) tax credits available under the law. ...The EV tax credit is a common-sense solution that will increase access to cutting-edge EVs for Georgia families, helping to reduce America’s reliance on fossil fuels and decrease greenhouse gas emissions. It will also help create clean energy jobs in Georgia and across the country. However, federal regulations that are overly prescriptive and burdensome will hamper our efforts to achieve these important goals."