Manchin Issues Statement Rebuking Treasury On IRA

Senator Joe Manchin (D-WV) has issued a combative statement following a US Treasury Department memo today easing some electric vehicle tax credits restrictions in the Inflation Reduction Act.

• Manchin: "The intent of the IRA was clear - bring our energy and supply chains onshore to protect our national security, reduce our dependence on foreign adversaries and create jobs right here in the United States. The information released today from the Treasury Department... bends to the desires of the companies looking for loopholes [and] serves to weaken our ability to become a more energy secure nation... I call on Treasury to pause implementation of both commercial and new consumer EV tax credit until they have issued the appropriate guidance... when Congress returns to session in the coming weeks I will introduce legislation that clarifies the original intent of the law and prevents this dangerous interpretation from Treasury moving forward."
• Manchin's signature on the IRA was crucial in August and the legislation has since been subject to public criticism from key US allies including France, Germany, and South Korea who see the tax incentives as protectionist and in violation of WTO rules.
• The IRA also subject to fierce opposition from Republicans as it passed without GOP support via budget reconciliation. Any move to undermine the legislation will likely receive backing of Republican controlled House in the next Congress.