Manchin slams White House proposal making it easier for China to have EV tax credits

Democrat Sen. Joe Manchin is accusing the White House of trying to circumvent Congress by implementing a Treasury Department rule that he says would make it easier for foreign entities in China and elsewhere to take advantage of the electric vehicle tax credits in the Inflation Reduction Act.

"The proposed Treasury rules on Foreign Entities of Concern are another example of the Biden administration clearly breaking the law to try to implement a bill that it could not pass," the West Virginia lawmaker said Friday in a statement in which he also argued the proposal also would harm U.S. taxpayers and increase the country's reliance on adversaries such as China.

"The Inflation Reduction Act clearly states that consumer vehicles are ineligible for tax credits if 'any of the applicable critical minerals contained in the battery' come from China or other foreign adversaries after 2024," Manchin wrote. "But this administration is, yet again, trying to find workarounds and delays that leave the door wide open for China to benefit off the backs of American taxpayers."

The Inflation Reduction Act prohibits the $7,500 federal tax credit from going toward vehicles with battery components or critical minerals from a  "foreign entity of concern" starting in 2024 and 2025. 

Foreign entities of concern include China, Russia, North Korea and Iran, according to Fox News.

Manchin is not seeking 2024 reelection, which has sparked speculation that he might run for president as an independent.

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