Golden Calls on Biden Administration to Delay New EV Tax Credits Until American Manufacturing and Assembly Requirements Guidance is Released

WASHINGTON — Congressman Jared Golden (ME-02) led a group of lawmakers this week in pressing Treasury Secretary Janet Yellen to delay implementation of the new consumer vehicle tax credits created by the Inflation Reduction Act (IRA) until guidance for American manufacturing and assembly of electric vehicle parts has been issued. Although the IRA, which was signed into law by President Biden in August, directed the Department of the Treasury and the Internal Revenue Service (IRS) to provide this guidance by the end of 2022, a recent announcement reports that guidance will not be made available until March 2023. 

“As you know, the IRA extends the Section 30D tax credit for electric vehicles (EVs) and a new Section 45W tax credit for commercial EVs,” wrote the lawmakers. “However, in expanding and creating these tax credits to incentivize the deployment of more EVs, Congress included in the IRA new domestic manufacturing and assembly requirements to ensure that our efforts to combat climate change are done in a way that expands our nation’s domestic energy manufacturing capabilities, reduces costs for consumers, creates millions of good-paying jobs for American workers, and secures our energy independence.”

Representatives Wiley Nickel (NC-13), Lou Correa (CA-46), Henry Cuellar (TX-28), Vicente Gonzalez (TX-34), and Marie Gluesenkamp Perez (OR-03) joined Rep. Golden in sending the letter. 

“Any delay in the full implementation of these tax credits will only further our reliance on our adversaries, notably Russia and China, for energy and manufacturing resources while enabling major corporations to continue to take advantage of tax loopholes that allow them to offshore American manufacturing jobs… Consequently, we urge you to delay implementation of the 30D and 45W tax credits until the guidance has been released that aligns with the intent of the IRA,” the members continued. 

Read the letter in full here. 

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