EV Tax-Credit Rules Pit Joe Manchin Against Hyundai
- Hyundai, Korean government press Yellen to widen IRA loophole
- Manchin claims leniency would undermine US supply chain goals
A Hyundai Ioniq 5 electric vehicle
Photographer: Muhammad Fadli/BloombergSenator Joe Manchin is pressing Treasury Secretary Janet Yellen to stand firm on North American-based manufacturing requirements for lucrative electric-vehicle tax credits under the Inflation Reduction Act, setting up a battle between the West Virginia Democrat and Korea’s Hyundai Motor Co.
At stake is whether Treasury would hand out the full $7,500 per vehicle in tax credits to more cars under a commercial-vehicle loophole. Manchin’s requirements say that retail EVs must be assembled in North America and with batteries made with minerals from friendly trading partners to get full credit. Hyundai and the Korean government have pushed for a lenient interpretation of the rules and more time to be compliant so their imported EVs can qualify for credits.