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Biden Admin's Clean Vehicle Tax Credits Faces Opposition From Centrist Dems

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A bipartisan group of lawmakers is preparing to introduce, “a resolution[Congressional Review Act (CRA)] that would throw out the Biden administration’s clean vehicle tax credit rules over concerns about using materials from China,” according to Punchbowl News.

  • Comes after the Treasury Department and IRS this month finalized rules rules for accessing EV tax credits in the Inflation Reduction Act. The rules were immediately panned by centrist Democrat Senators Joe Manchin (D-WV) and Sherrod Brown (D-OH) who argued the rules would, "allow China to infiltrate the American auto supply chain, at American taxpayers’ expense."
  • Co-sponsor Rep Carol Miller (R-WV) said in a statement: “Our adversaries should not have access to American tax credits, plain and simple.”
  • The backing of Machin and Brown provides enough votes for the resolution to pass the Senate, assuming all Republicans get onside. Furthermore, special privileges assigned to CRAs allow lawmakers to force a vote without approval from the chamber's leadership.
  • The CRA comes as President Biden and former President Trump campaign on platforms competing for a tougher approach to China. However, Biden's clean manufacturing agenda has often been upended by domestic politics – particularly in rust belt states like Ohio where Brown is facing reelection in a state Trump is expected to win by around 10 points.
  • Notably, Brown single handedly tankedthe Biden administration’s long-planned trade pillar of its Indo-Pacific Economic Framework (IPEF) just days before it was due to unveiled at the APEC summit in San Francisco last year.
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A bipartisan group of lawmakers is preparing to introduce, “a resolution[Congressional Review Act (CRA)] that would throw out the Biden administration’s clean vehicle tax credit rules over concerns about using materials from China,” according to Punchbowl News.

  • Comes after the Treasury Department and IRS this month finalized rules rules for accessing EV tax credits in the Inflation Reduction Act. The rules were immediately panned by centrist Democrat Senators Joe Manchin (D-WV) and Sherrod Brown (D-OH) who argued the rules would, "allow China to infiltrate the American auto supply chain, at American taxpayers’ expense."
  • Co-sponsor Rep Carol Miller (R-WV) said in a statement: “Our adversaries should not have access to American tax credits, plain and simple.”
  • The backing of Machin and Brown provides enough votes for the resolution to pass the Senate, assuming all Republicans get onside. Furthermore, special privileges assigned to CRAs allow lawmakers to force a vote without approval from the chamber's leadership.
  • The CRA comes as President Biden and former President Trump campaign on platforms competing for a tougher approach to China. However, Biden's clean manufacturing agenda has often been upended by domestic politics – particularly in rust belt states like Ohio where Brown is facing reelection in a state Trump is expected to win by around 10 points.
  • Notably, Brown single handedly tankedthe Biden administration’s long-planned trade pillar of its Indo-Pacific Economic Framework (IPEF) just days before it was due to unveiled at the APEC summit in San Francisco last year.