U.S. senator seeks to bar EVs from tax credits not meeting sourcing rules

Tesla electric vehicles are shown at a sales and service center in Vista, California, U.S., June 3, 2022. REUTERS/Mike Blake

WASHINGTON (Reuters) -U.S. Senate Energy and Natural Resources Committee chair Joe Manchin on Wednesday introduced legislation that would immediately impose battery sourcing requirements on electric vehicles to qualify for $7,500 tax credits.

The U.S. Treasury in December said it would not issue proposed guidance on battery sourcing rules until March, giving some electric vehicles not meeting new requirements a brief window of eligibility in 2023 before the battery rules take effect. Manchin's legislation would make all of the battery requirements for tax credits retroactive to Jan. 1.