Letter to Janet Yellen, Secretary of the Treasury - Senator Reverend Warnock Pushes Biden Administration for Maximum Flexibility to Ensure Georgia Car Buyers, Manufacturers Benefit from Electric Vehicle Tax Credits

Letter

Dear Secretary Yellen:

As the Department of Treasury works swiftly to issue regulations in accordance with the Inflation Reduction Act (IRA), I urge you to offer maximum flexibility for vehicle manufacturers and consumers to take full advantage of the electric vehicle (EV) tax credits available under the law.

By passing the IRA, Congress took a crucial step in addressing the challenges we face now and preparing for those to come. This historic legislation delivers for Georgians by lowering health care costs, reducing the deficit, and tackling the climate crisis--which has already affected many communities throughout Georgia, especially low-income and historically marginalized communities.

I have been a proud champion of green jobs in Georgia, and the IRA has great potential to create good-paying jobs throughout the state and nation. However, the extent of its success will depend heavily on the Biden administration's implementation strategy. That is particularly true with respect to the changes made to the federal EV tax credit in an effort to increase consumer adoption and reduce harmful emissions.

The EV tax credit is a common-sense solution that will increase access to cutting-edge EVs for Georgia families, helping to reduce America's reliance on fossil fuels and decrease greenhouse gas emissions. It will also help create clean energy jobs in Georgia and across the country.

However, federal regulations that are overly prescriptive and burdensome will hamper our efforts to achieve these important goals. Such regulations could reduce competition within the EV market and punish the very manufacturers currently making large domestic investments in EV capacity--ultimately harming Georgia's workers and consumers.

The Congressional intent of the IRA is to make EVs more affordable for more Americans to address the urgency of climate change while sparking clean energy jobs across the country. I am committed to ensuring that the IRA is implemented in a way that serves this important goal. To that end, I urge Treasury to adopt regulations that make EV tax credits accessible to as many consumers as possible, as quickly as possible, in a manner that promotes economic growth, job creation, and climate resiliency.

Thank you for your continued partnership as we work to navigate the challenges of a once-in-a-generation pandemic and the economic challenges created by supply chain disruptions and geopolitical conflict. Georgia has benefited from our combined efforts, but more work is required to support our continued economic recovery. I look forward to continuing to collaborate with you in strengthening our economy's resiliency and position on the world stage.

Sincerely,

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