Senator Joe Manchin denounces the expansion of the tax credit for electric vehicles and calls for the development of hydrogen
West Virginia Democrat Joe Manchin on Thursday lambasted a potential expansion of the electric vehicle (EV) tax credit, while also calling for the development of the hydrogen sector to decarbonize the transportation industry.
Manchin, who called a Biden administration proposal to expand the electric vehicle tax credit program “ridiculous”, said the waiting period for electric vehicles is already so long that he there is no point in offering more money to induce consumers to buy a battery-powered car. .
“There is a waiting list for electric vehicles right now, with fuel prices, but they still want us to issue a $5,000, $7,000 or $12,000 credit for us to buy vehicles electricity,” he said Thursday during a Senate budget hearing. Manchin added that electric vehicle production volumes are nowhere near meeting current demand levels, so offering additional funding for the programs would be ridiculous.
It’s evident that EVs are becoming more and more popular, and with automakers in nearly every EV-related situation still working to produce and sell 1 million electric powertrains per year, demand is outpacing the measures of current production. However, companies are spending incredibly large sums on the development of electric vehicles, while small companies dedicated to electric vehicles are increasing their production. Tesla will produce at least 1 million vehicles worldwide this year after falling just short of the mark in 2021. Many projections indicate that the company will produce at least 1.5 million vehicles this year, but some of its cars are still sold out until 2023.
The tax credit for electric vehicles was to be introduced with new conditions. That is until President Biden’s Build Back Better plan was stalled after Manchin refused to back the bill. This would have increased the credit from $7,500 to $12,500, provided the vehicle and its battery were built in unionized US facilities to take full advantage of it. It would also have ended EV credit caps, which both Tesla and General Motors have because they are disqualified from offering the credit after selling 200,000 EV units.
Manchin added that money spent on expanding the electric vehicle tax credit program should be channeled into other sources, such as hydrogen powertrain research. Manchin is a member of the West Virginia Hydrogen Hub Coalition, which hosted House Speaker Roger Hanshaw, Senate Speaker Craig Blair, Senate Minority Leader Stephen Baldwin and House Minority Leader Doug Skaff in the group yesterday.
Manchin has openly criticized a full transition to electric vehicles in the past and openly criticized the “benefits” of an all-electric future.
Senator Joe Manchin ‘reluctant’ to electric vehicles: ‘I don’t want to have to wait in line waiting for a battery’
“I have serious concerns about moving too quickly toward an EV-only future,” Manchin said during a panel hearing earlier this month.
Manchin also believes that electric vehicles are not a way to break free from oil dependence in other countries. “It is frustrating to hear calls for a faster transition to electrified transportation to reduce our dependence on foreign oil,” Manchin said in early April. “We can’t replace one unreliable foreign supply chain with another and think that’s going to solve our problems.”
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