WASHINGTON — Democrats are discussing concerns that requirements attached to their expansion of electric vehicle incentives could be too harsh and block a significant portion of cars from qualifying.
The $7,500 tax credits to help consumers buy electric vehicles are dependent on whether key components are sourced from U.S. allies, constraints added to their climate, tax and health care package to force supply chains out of China and satisfy Sen. Joe Manchin III, D-W.Va.
Some senators now worry the capacity to deliver important electric vehicle parts can’t be built up fast enough in the U.S. and other eligible countries to meet the new tax credit requirements, though Manchin is likely to have the ultimate say.
