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Briefing

U.S. EV tax credits imperiled as Manchin spikes bill

Democratic Sen. Joe Manchin said he will not support the wide-ranging Build Back Better spending plan, which includes tax incentives for electric-vehicle purchases that could incentivize automakers to choose the U.S. manufacturing over Canada. (Fox News)

Briefing

U.S. EV tax credits imperiled as Manchin spikes bill

By Anita Balakrishnan
Dec 20, 2021
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Democratic Sen. Joe Manchin said he will not support the wide-ranging Build Back Better spending plan, which includes tax incentives for electric-vehicle purchases that could incentivize automakers to choose the U.S. manufacturing over Canada. (Fox News)

Talking point: The vote hasn’t happened yet. But without Manchin, who is concerned about inflation and national debt, the bill may not pass the evenly divided Senate. If the bill dies, it will relieve Canadian auto suppliers who feared they would be shut out of the U.S. without a carve-out or matching policy for Canada. Manchin was one recipient of a Dec. 10 letter from Deputy Prime Minister Chrystia Freeland and International Trade Minister Mary Ng, who threatened to retaliate if the EV credits passed as written. If the bill remains blocked, though, it’s unclear how the U.S. will stimulate EV production compared with internal-combustion vehicles. Meanwhile, Canadians who buy new vehicles from Detroit-based automakers will still be required to buy zero-emissions vehicles starting in 2035. Ng’s office didn’t immediately respond to questions about the plan for U.S.-Canada auto trade.

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