Sen. Joe Manchin (D-W.Va.) is criticizing the Biden administration’s broad interpretation of who can qualify for tax credits for electric vehicle chargers, saying its recent policy “spits in the face of rural America.”
The Inflation Reduction Act, compromise legislation between Manchin and his fellow Democrats, includes a range of tax credits aimed at promoting climate technologies.
One such credit allows businesses and individuals to claim up to 30 percent of the cost of installing electric vehicle chargers in areas that are either low-income or nonurban.
The Biden administration released guidance last week that offers a broad definition of nonurban — including any census tract where at least 10 percent of blocks have not been designated as urban areas.
Ultimately, the tax credit will be available to about two-thirds of Americans, according to the White House.
Manchin, in a statement Tuesday night, accused the administration of going against the law — and harming rural Americans.
“The Administration just will not stop ignoring the law in pursuit of its radical climate agenda — no matter the cost,” he said in a written statement.
“This proposed guidance ensures that rural Americans will remain stuck at the end of the investment line, the exact problem this tax credit was supposed to address, choosing to give hand-outs to those that don’t need it while ignoring its responsibility to provide a hand up to rural communities at risk of being left behind,” he added.
The new guidance is the latest flashpoint between the conservative Democrat and the Biden administration.
Manchin has repeatedly butted heads with the administration over how it has interpreted various provisions of the Inflation Reduction Act. He has been particularly critical over provisions related to electric vehicles, including allowing “crossover” vehicles to access credits for electric SUVs.
Other Democrats praised the guidance.
“The adoption of alternative refueling infrastructure is pivotal in our efforts to expand our zero-emission vehicle fleet and decarbonize our transportation sector,” Sens. Alex Padilla (Calif.) and Catherine Cortez Masto (Nev.) said in a written statement last week.
“Today’s announcement from the Treasury and the IRS heeds our call to broaden eligibility to further incentivize public and private sector investments in clean energy infrastructure,” they said.