Several lawmakers from both parties want to use the Congressional Review Act to overturn Biden administration regulations (TD 9995) implementing the mineral and battery sourcing rule to qualify for the Section 25E and 30D electric vehicle tax credits.
The lawmakers argue that regulations around the credits do not limit critical mineral sourcing from China as strongly as the law intended.
“I totally disagree with what you all are doing implementing the EV credits,” Manchin told Treasury Secretary Janet Yellen during a June 4 hearing. Manchin continued to tell Yellen that he is “encouraging every manufacturer to sue you” and would submit amicus briefs in lawsuits against Treasury on the issue, adding additional legal uncertainty around the rulemaking.
Manchin and Brown introduced a Congressional Review Act resolution to overturn the language and force the Biden administration back to the drawing board on mineral sourcing, if the resolution passes both chambers of Congress — and survives a possible veto from President Joe Biden. Reps. Jared Golden, D-Maine, and Carol Miller, R-W.Va., also introduced a companion resolution in the House of Representatives, reflecting bicameral support to revoke the critical mineral sourcing language.
The CRA is a law that allows Congress to use resolutions, rather than new laws, to overturn agency rulemakings, forcing regulators to rewrite rules around particular topics. Notably, the law grants such resolutions fast-track privileges, including bypassing the frequent 60-vote threshold needed to open debate on resolutions and bills in the Senate, and lowering the bar for passage.
Contacts:
Content disclaimer
This content provides information and comments on current issues and developments from Grant Thornton Advisors LLC and Grant Thornton LLP. It is not a comprehensive analysis of the subject matter covered. It is not, and should not be construed as, accounting, legal, tax, or professional advice provided by Grant Thornton Advisors LLC and Grant Thornton LLP. All relevant facts and circumstances, including the pertinent authoritative literature, need to be considered to arrive at conclusions that comply with matters addressed in this content.
For additional information on topics covered in this content, contact a Grant Thornton professional.
Grant Thornton LLP and Grant Thornton Advisors LLC (and their respective subsidiary entities) practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations and professional standards. Grant Thornton LLP is a licensed independent CPA firm that provides attest services to its clients, and Grant Thornton Advisors LLC and its subsidiary entities provide tax and business consulting services to their clients. Grant Thornton Advisors LLC and its subsidiary entities are not licensed CPA firms.
Tax professional standards statement
This content supports Grant Thornton Advisors LLC’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. It is not, and should not be construed as, accounting, legal, tax, or professional advice provided by Grant Thornton Advisors LLC. If you are interested in the topics presented herein, we encourage you to contact a Grant Thornton Advisors LLC tax professional. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein.
The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal, tax, or professional advice provided by Grant Thornton Advisors LLC. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact a Grant Thornton Advisors LLC tax professional prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton Advisors LLC assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.
Grant Thornton Advisors LLC and its subsidiary entities are not licensed CPA firms.
More tax hot topics
No Results Found. Please search again using different keywords and/or filters.