Senate Committee Holds Hearing on EV Incentives
Yesterday, the Senate Committee on Energy and Natural Resources held a hearing on incentives for electric vehicles and the role of the federal government in EV supply chains. Deputy Secretary David Turk of the Department of Energy and Deputy Secretary Adewale Adeyemo of the Department of the Treasury were the only two hearing witnesses. Committee Chair Joe Manchin (D-W.Va.) was critical of the way the Inflation Reduction Act (IRA)’s provisions are being interpreted and implemented by the administration, while Ranking Member John Barrasso (R-Wy.) and other Republicans blasted the IRA in general.
Effective Jan. 1, 2024, new rules on the Clean Vehicle Tax Credit (CVTC) went into effect, including the credit becoming available at the point of sale. The IRS launched a new website through which dealers could register to offer the credit and recently announced it would extend the deadline for dealers to submit "time of sale" reports until January 16. Later this month the deadline is expected to revert to the standard three days from the time of sale.
Government Shutdown
The clock is ticking for Congress to pass a spending plan by Jan. 19, the first of two deadlines set when they punted the issue late last year. This week it became evident that another short term extension is increasingly likely due to divisions in the House Republican conference on a topline buget number. Congress has extended the 2023 fiscal year budget, which ended Sept. 30, 2023, twice already as it failed to come to an agreement on new appropriations bills for fiscal year 2024.
EPA Tailpipe Emissions Proposal
The EPA’s proposed rule, which would effectively require two thirds of new vehicles sold in the U.S. be all-electric by 2032, is expected to be finalized early this year. Late last year, the House of Representatives passed the Choice in Automobile Retail Sales (CARS) Act, which would permanently prohibit the EPA from finalizing the rule. Dealers are urged to contact their Senators and ask that the Senate follow suit and pass the CARS Act TODAY.
Quotes of the Week
“What the IRA really stands for is Irresponsible, Reckless and Alarming. The damage that the IRA will do to the automotive sector is potentially catastrophic.”
-Sen. Jon Barrasso (R-Wy.) (www.energy.senate.gov)
“To turn inward — to throw up trade barriers, impose tariffs, stop doing trade deals, reactively repatriate supply chains — is to inflict harm to our own economy. It robs our businesses and workers of new opportunities and it raises prices for every American.”
-Suzanne Clark, President & CEO, U.S. Chamber of Commerce (Politico)
ICYMI
Join AIADA's incoming Chairman, Anthony Brownlee, for refreshments and hors d'oeuvres during the NADA Show!
Friday, Feb. 2, 2024
5:30 p.m. - 7:30 p.m. PST
Encore at The Wynn, Chopin 3 & 4 (3131 Las Vegas Blvd)
RSVP using the online registration form by Jan. 19 so we can best accomodate everyone.
We look forward to seeing you!
Friday Feel Good
Here is just one recent example of how dealers are doing good in their communities:
Liberty Auto Group in New Jersey donated a new scoreboard to Hillman Field, home of the Emerson Little League. (h/t NJCAR)
We want to hear more about how you are supporting your local community – tweet us at @AIADA_News and use the hashtag #DealersDoGood.
